Hi guys,
what happened to the minimum of 1.6 rule?
DOes it really work?
i have been using this rule rather than 11 secs.or do all of u only use the 11 sec rule?
what is the 1.6 rule how does it work
It’s in a book by Brad Sugars… purchase price x 1.6 should equal likely rent. eg buy for 100k, rent for 160k minimum.
cheers
rHi Richmond is that 160k minimum weekly rent or $160 weekly rent [
]hmm maybe I shouldn’t have said that since your a moderator [
]Hi Folks
My maths isn’t to strong, so forgive my dopey or obvious question.
I understand the 11 sec sol gives you a 10.4% yield, what is the 1.6 showing us? I assume it is the minimum rent to remain cf+[
]Cheers
Leigh K[]Read, learn, grow but most of all do it.
Hi FolksMy maths isn’t to strong, so forgive my dopey or obvious question.
I understand the 11 sec sol gives you a 10.4% yield, what is the 1.6 showing us? I assume it is the minimum rent to remain cf+[
]Cheers
Leigh K[]Read, learn, grow but most of all do it.
8.3% gross[
]Cheers Wayne
???
Pretend I am a two year old. A very smart two year old…
Can someone please explain this theory a little more and chuck in a few calculations to show an example.
Cheers
Steph.Success is 1% inspiration and 99% perspiration.
Scremin,
Lets suppose your purchase price(or current valuation if owned for a while) is $100k
and lets suppose the rent is $120 per week
Your GROSS income is 52 weeks X $120….$6240
To work out GROSS yield, divide gross income by the purchase price, and multiply by 100
i.e. (6,240/100,000)*100 = 6.24%
Of course we must deduct vacancies and expenses etc in order to get the NETT yield.
Hope that helps
Wayne
Thanks Wayne, sort of makes it a little clearer.
Anyone else with an explanation?
Success is 1% inspiration and 99% perspiration.
]
]
]
]
The topic ‘What happened to the 1.6 Rule?’ is closed to new replies.
