Di Cam
i can’t remember him making a comment on that one. But your logic follows.
RK would never advise buying a money loosing property.
As far as the House being an asset i’m with kiyosaki on this one. My car isn’t really an asset either but i could sell it for $$. It makes me laugh when i fill in loan applications and they have car and furniture in the assett column. And then sometimes they don’t always count small Cap stocks
westan

yes

you can still find them in Vic. in cities such as Ararat, Stawell and Horsham.
In Stawell for instance 60k rent $120. so returns not as good as the past but still cash positive easily. But these homes are in short supply only two on the market for 60k or under.

and i was buying them 10 months ago for 35K
westan

Hi gooch1

You would nead a commercial loan because there are 6 units therefore my need 66%finance ?
assuming that you pay 280K you nead 96k cash in the deal.
Loan 184K @ 6.6% = 233.5 pw Interest
Rates/water could be high
because 6 units say 3000 pa = 60pw
Insurance 400pa (guess) =8pw
agent @7% assuming all let
at 90pw =40pw
Total expenses =340 pw
Total rent 90*6 =540pw
balance =200pw
this must cover vacancy/ repairs etc
Best senario 200pw = 10000pa
Return on Cash 10.4% (not high enough for me)
Risks
1 bedrooms usually have the highest vacancy and turnover of tenants, especially during quiet times. If two units were vacant you will make nothing on you sizable investment of 100k. The property would have to be in an area of stong growth. i know i’m a lot tighter with the figures than most people but i wouldn’t be in this deal, i like to return 20% on my cash into a deal. Gooch1 if you could get an 80% loan the profit is $7500 pa and %13.39% still not good enough given the risks of vacancy (sorry mate).
Interested to here what others think of the deal. I’m in at $180K
regars westan

Hi chris

i don’t think Kiyosaki says eduction is a waste of time, infact he encourages education (and it appears this is where he makes all his money).
I work in a school (not as a teacher) and it amazes me how teachers complete focus is on education, get a good education and get a Job. This is the way teachers have done it and think it is the only way. Kiyosaki’s greatest cotribution is that there are many other ways. he has affected my thinking so much that i asked my 10 years old this morning would he rather work for someone or be an investor? I still expect and want all my kids to go to Uni. but life is bigger than working for someone else all your life.
My big goal with investing is the set up my kids for the future, have enough passive income they can do whatever they want with their life rather than work because they have to survive. I would love my kids to be involved in something that helps others, but its their life.
regards westan

Hi everyone

muppet
show’s what an ignorant Aussie i am, the all blacks were playing the south african’s not the French.[] But i did know the game was in Dunedin because an agent i spoke to was heading of to watch the game that night.
Go the Kiwi’s they won again,[] i’d better start barracking for them since we will be living in otago. And my Aussie rule team Richmond aren’t doing to well.[xx(]
Recovery have a great holiday and successful trip, I’m feeling like i should be there now as some great deals are being snapped up,
Talk to you tonght Diamond, did you get the email?
bye westan
regards westan

Hi benson,

I to was disappointed when i read that article but i still haven’t heard Kiyoski’s response( if he has one).

I still find his teachings on financal matters to be excellent. I remember seeing him on lateline a few days before the tech stock busting, his advice to get out straight away saved me $1000’s. And it was rich dad poor dad which i read after i had bought my first 10 houses that encouraged me that i was doing the right thing and to keep doing it.
Would you buy another one of his books now?
regards Westan

Hi dennis

my criteria is the poperty must return $30 to me each week.
that is
Rent
less
interest
rates
water
insurance
agent
balance $30 pw to cover vacancy, repairs, profit to me
Also this would be for a property up to say 60K if it was say 100k i would like 50+ pw.
this is my criteria and as others have said work out your own, what you want to achieve.
i also like to buy properties that i can add value to, cheaply
regards westan

Hi muppett

forgot to ask who are your ladies netball team playing?

westan

hI Paul

My Dad was a Minister in the Uniting Church and i remember him telling me about a guy he knew in the 1980’s who was as in the Fairfeild infectous diseases hospital, he was living in a Iron Lung (no sure what they are exactly but i know he could never leave the hospital). He had a hobby of buying and renovating house around Melb. If he could do it anyone can.
In answer to some of the Questions
1. Interest rate rises, you can fix your rates even up to 5 years easily and not very expensive. That deals with rate rises, hopefully the rents will rise also.
2 People destroy homes- this does happen. But you can buy Landlord insurance, its very cheap usually under 200 per year and will cover and damage by the tenant. it will also cover loss of rent if the tennant doesn’t pay. That covers that one.
3. who will repair the house, it’s easy to find handy people to pay to do the work, rental managers usually can advise if you don’t know any. Or put in a bad tenant get them to trash the place then get it fixed on your Landlord insurance[] sorry just a little joke there.
don’t let your restrictions stop you. We all have some form of restriction, for some it may be the lack of deposit, we can find ways around the challenges.
But my concern is the market, i’d be careful that the returns are not there at the moment perhaps the market may even drop a little. But use the time while things settle down to learn as much as you can
keep looking for that great deal they are out there
regards westan

Good posts

how about

the definition of a volunteer is someone who didn’t hear the question properly

westan