I’m sorry but I have looked around all over the country, and I cannot find any properties that meet this first critera of the eleven second solution. If anyone can find such properties for me, feel free to advise so I can buy them. But they don’t appear to exist in the city areas at least. Not even in Brisbane.
THE 11 SECOND SOLUTION SAYS THIS;
For example, imagine a house rents for $100 per week. Applying the Eleven Second Solution™ you come up with:$100 (rent) divided by 2 is $50…multiplied by 1,000 equals $50,000.
This means the maximum you’d be willing to pay for this property is $50,000.
They are around at 10% yield, even in Brisbane
I have one I am looking at now.
In the outer areas, I have just heard of a buyers Advocate
locating positively geared properties around
the Toowoomba area if you are interested you
can email me and I will pass on his details.
Tara.With the 11 second rule; you’re looking at residential property that can return about 10% on investment. Unfortunately, you will probably not find any in all major capital cities. In Sydney for example; you will still be able to find returns of around 7% if you look hard enough. The more exclusive the properties are, the worst the return….some as low as 3.5%. Most properties in the Sydney metropolitan area are currently returning around the 4.5% to 5.5% mark. To get 10% return in the major capital cities…..you would have to look at other then residential property; e.g., commercial and industrial properties……but in this area of property investment you’ll have to forsake consistant capital growth.
Basically; if you are looking for 10% return, you will have to look at properties in the country or possibly the fringes of metropolitan cities.
Well I must say in Steve’s defence that I have bouhgt 6 (nearly 7) properties and of those 5 would fit the criteria. They are out there you just have to look outside the normal areas.
Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithI think Steve would be horrified that people arent buying because they are following his 11 second rule so strictly. They are out their, believe me. I bought a commercial property 50 clicks from Melbourne CBD last month that returns 15% plus and its only 2 years old. Cost 390k and rents for 55-60k per annum.Saw one in Dandenong recently to that returned pretty much the same, but I didnt like its location. Price was 100k for 13.5k rent.Bought a small block of units earlier this year for 100k that returns 17% in a regional town. Had it just revalued for 140k! I saw some blocks of flats on the net last month that returned 12% at full price. No offence, but I just cant understand it when people say their arent any good deals out there. There are plenty of 10% returns out there, but I dont do them because their are better returning ones around the corner!
Edited by – [email protected] on 06/11/2002 3:44:58 PM
Tara,
i’m in brisbane myself and am about to start the whole wrapping game, i’d be interested in hearing more about your experiences, and the buyers’ advocate you mentioned. Could you email me please at:
[email protected]
if you get the chance
Thanks
Mattquote:
They are around at 10% yield, even in Brisbane
I have one I am looking at now.
In the outer areas, I have just heard of a buyers Advocate
locating positively geared properties around
the Toowoomba area if you are interested you
can email me and I will pass on his details.
Tara.
Tara,
My husband and I are new to this site and are finding it difficult to find properties that fit the 11 second solution. We would be very interested in having more details of the buyers advocate. Also if you could give us some idas on other areas we could look at it would be greatly appreciated.Karen & Phil
Well I guess if you look har enough. But I think that perhaps this 11 second rule is a little optimistic. I have seen a property for sale at around 210k and is renting for $250 / week. 250/2 = 125 times 1000 = $125,000 Thus it fails the 11 second rule, yet this looks like a damn good buy to me.
So I’m left scratching my head. Surely the only real rule, is the rule that if it passes a Quantity Surveyors report and the numbers look good then go for it. i.e costs less than $20 per week to hold in the first year. Normally capital growth at 5% would recover this cost even after CGT tax and sales commision and costs.
Try http://www.sunshinepacific.com.au i think this web site specialises in positive cashflow properties there use to be a few in Brisy.
AB
Hi Guys, they are definately still there, but you have to look harder and harder to find. Have just bought 3 in the last 3 weeks. Keep in mind we are looking at property EVERY SINGLE DAY!
You’ll find it increasing difficult just to find them on the weekend looks, but they are still there.
We use this rule as a safety net for our wrap properties. t’s just a better way to protect our investors who enter Joint Ventures with us. If the wrap goes bad, they can stick it out there and rent it (and still make money). BUT, if the numbers still stack up and the formual isn’t met, we proceed and buy the place.
The higher the price, the harder to hit the formula. Normally you need to hit areas that are more suitable to cashflow strategies rather than capital growth strategies. ie fringe suburbs or rural.
No, I won’t tell you were we purchase. Why not? because next week I’ll have 20 new wrap competitors shopping my areas. [
]Just keep placing the offers guys. You realise the more low offers we make, the better it is for all of us as it lowers the market expectations of higher prices.
Only my 2 cents worth,
Mike
Remember, life’s about Family, Fun and Finance (probably in that order).
Mike
Director
http://www.PositiveCashflow.com.au
“Positive Cashflow for a Positive LIFESTYLE”
because
“Life’s too short to be Negative”Hey guys,
IF you want to know where the properties are jump on realestate.com.au and set the parameters to sub $100K and plug away. This will give you some ideas then it is either the phone or the pavement…EnjoyAD [:0)]
A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithWell I think the market is on the verge of a correction. I believe its already started in Melbourne and Sydney. Speculators appear to be offloading stock, and I have noticed prices falling, even in Brisbane. The collapse has begun. hehe.
Can someone point a cash positive investment my way please. I’m getting desperate. Surely you gurus can spare one. just one. pretty plz….
Which part of the world are you in ??
ADA great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithI’m in Melbourne. But I’m looking to invest in Brisbane.
positive cash flow scenario only. cheers.There are positive cashflow properties to be found in a number of regional towns in Victoria. Seek, and ye shall find…
Keep smiling
FelicityHi Howard,
Karma Baby! Light the aroma candles, meditate in a darkened room, get the crystal ball out, mumble a few choice epitah’s and hey presto you might find the property you’ve been looking for! [:0)] Other than that take a glimpse at some of the links at this forum.
Apart from lack of sleep, I’m feeling quite cheeky! Unfortunately Hubby is still working. I guess you all get the brunt of my naughtiness [}
]. And NO I haven’t had anything to drink, actually come to think of it I did have that new Fanta Blueberry flavoured drink which tasted like..[]…umm is this defamatory []?What I really wanted to post is from my research, I’ve found heaps more cash flow +ve properties in QLD than in my research around VIC at this particular time. And since I’ve not been to QLD in a while you are still safe from me, as I’m not likely to purchase anything until I know the area I’m buying into. Lucky for you all!!! [
]A very naughty Sooshie [}
]It’s all our imperfections that make us perfect!
Dear Lord,
Did I actually write that above [?]
I’d better get to bed!
A contrite Sooshie [
]It’s all our imperfections that make us perfect!
I have bought 6 (nearly 9) cashflow positive properties in the Qld area. Now before you ask the answer is no [}
]. I won’t tell you where because more than half the joy of knowledge is the journey to receive it. Best of luck though and I can assure you they are still out there. I looked at three today and will hopefully buy 2 of them.
DO NOT GIVE UP !!! (I Didn’t…..thanks Steve.)Enjoy
AD [:0)]A great deal of talent is lost to the world for want of a little courage. Every day sends to their graves obscure men whose timidity prevented them from making a first effort.
-Sydney SmithHi All,
Would I be safe in assuming the 11-second solution was thought of when interest rates were at a higher level than they are currently? This obviously has a major impact on the profitability of a property.
Should we be looking at less stringent qualifying criteria?
All thoughts welcome.
Regards,
]…umm is this defamatory [
]?
]
]
The topic ‘11 Second Solution – Step 1 – Is this Serious ?’ is closed to new replies.
