Jimmy Jones was leaving a room but when he tried to push the door open, he realized he couldn’t. He tried to bang the door with all his strength but it didn’t work. Then he saw something that made him laugh and he exited the room. What did he see and how did he open the door?
Two identical airplanes (Plane A and Plane make the round-trip flight from Melbourne to Sydney on different days. They both use the exact same route and the same flight conditions are the same, save one: Plane A experiences no winds on the flight, and Plane B experiences a constant wind that gives it a headwind (flying against the wind) going to Sydney, and a tailwind (flying with the wind) back to Melbourne. If both airplanes maintain the same airspeed (speed relative to the wind) the entire flight, which airplane will take longer to complete the round-trip? Why?
Once again, it’s great that you’ve identified a growth area, but you need to consider the saleability of the property at the end of the 12 months. You can only sell a property at 15-20% higher than you bought it for if there is someone willing to pay that much for it when you want to sell.
It’s a simple idea, but with all the statistics and predictions going around the last few months, it’s easy to forget!
If you think it’s a goer, compare it to what you might be able to get with your money elsewhere and then compare the risk levels.
We’ll have to wait until the findings of the productivity commission to know what’s going to happen with respect to any of this. The government probably won’t pay much attention to their recommendations anyway…? Just have to wait and see.
Steve.
ps: I can’t find any articles or anything that mentions 01/05/04 for this happening. Perhaps SMARTMONEY knows someone on the Productivity Commission?? []
Some weeks ago, I read an article (can’t find it now) about the abolition of Mortgage stamp duty for first home buyers. (Note: Highly unlikely that the same would apply for land or building stamp duty).
I live in VIC and read it in The Age, but the article was about how QLD was going to do it, and how Steve Bracks was considering it for VIC.
I think this may be what SMARTMONEY is referring to??
It’s great that you’re expanding your mind to think of new ways of raising capital, but if it was so easy to make 30-40k per year (per property?) using negative gearing, why would we worry about positive cash flow property in the first place??
Good luck! []
Steve.
ps: If you’re confident enough to be able to make 30-40k per property in 12 months, then go for it! Just be prepared for the possibility that all might not go as planned.
1. Correct – 1 point milkmanjr
2. Incorrect
3. Pretty close – Clue: Applies to baseball or softball and you have one of them right as the catcher. 1/2 point to MH
4. Correct – 1 point MH
5. Correct – 1 point milkmanjr
In a book called “The Australian Landlord’s Handbook” by Suzi Bilosh, it goes something like this…
Dear (Mr/Mrs/Ms) Tenant
Re: Rent increase at: (….address….)
I am giving you ….. days notice to inform you of a rent increase of $……. that will come into effect on …/…/2004. Therefore the rent due it $……, due on the …….. of every ………. If you anticipate that you will not be renewing the tenancy you are required to give me …… days notice.
I appreciate the good care you take of the home and hope you will continue your stay.
Thank you.
Yours Sincerely
Landlord’s name:
Considering how fantastic your tenants are, this might sound a little tough. If nothing else though, it gives you one example of how to set out the notice.