Finding CF+ve properties is proving difficult

Hi,
I’m new to property investing and still learning, so please excuse my question if it is too basic – What is an IRR?

Also, there seems to be an argument going here that it is better to invest in -ve CF properties because they have greater growth than +ve CF properties.
In my simplistic view: If you pay, for example, a $20K deposit on a $100K +ve CF property and it never increases in value – with a tenant paying rent and this paying the loan, you still end up with an $80 profit at the end of the loan (you’ve only paid $20K out of your own hard earned cash).
Even if the property fell in value eg to $80K, you would still make $60K profit. Also allowing for inflation over the term of the loan, it still seems to me that there would be a significant profit, not to mention the extra cash you’ve earned from the +ve cash flow.
So even without growth you have quite a large return on investment.
Am I being too simplistic here, or is this a valid comment?

Regards, Michelle.

Yack,

Back in 1999 I was a share trader, I like trading shares because there is excitement every minutes of the day!

I bought at the wrong time and sale at the wrong time as well this due to in-experience and lack of knowledge. So I lose some money in share tradings.

Then I look for other opportunity ie. managed funds and I make some money, but it just too slow.

Then I look for more opportunity ie. Property investing and stack to it since because I am making money from it.

Next opportunity is to buy quality business! When? don’t know! wish me luck!

Kind regards

Chan Dollars
[Retire Young, Retire Rich] [strum]

Hi Michelle and welcome to the forum. I think you are n the right track for starters and as you move forwards with more experience you may find other ways that suit your changed circumstances better.

One of my favourite sayings is Keep It Simple Stupid! Not suggesting for one minute that any one is stupid, but keeping things simple is the best policy. No point confusing things any more then you have to, especially till you have a grasp on the market you are playing in. Sometimes too much knowledge can be dangerous as one cant see the trees through the forest and always overlooking the simple solutions.

Regards Bear

POSITVE CASHFLOW properties and Joint Ventures available!
For the BEST deals register via E-mail [email protected]
DONT MISS OUT!!!!!

Hi Bear,

im fine… [whistle] but been lazy all day… [sleepy2]… and yes i do see your drift, and im more surprise Chan said this

“If I have to opportunity (in the future) I will look for quality investment property “

i knew, id turn him round… lol [tongue]

Cheers,
sis

ps… Hi Michelle_G, heres a link on IRR’s

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Thats where Equity Mate comes in …LOL

Not to mention No Doc and low doc loans

Regards Bear

POSITVE CASHFLOW properties and Joint Ventures available!
For the BEST deals register via E-mail [email protected]
DONT MISS OUT!!!!!

<<<<I think this is the first time that Yack, SIS and Chan$ has somethings in commons…lol….quality investment property:>>>>

Now we need to work on Leigh K, Mini Mogul and Pisces. Well there are some battles you cant win.

There is something really really bogus about SIS, the student with the part time job, who’s cutting down his hours, controlling a 2.1 million portfolio that he built up in 12 months, buying more 300K+ properties like mad, overseas in ‘secret locations’, (of course).

Also, a lot of your arguments are bogus non-arguments anyway, like saying ‘low returns’ or ‘small returns’ are not worth it, but then saying that ‘if the IRR stacks up’, it’s worth it.

i thought we agreed on a previous thread that IRR means yield, or ‘returns’. Now what’s your bottom line on an IRR stacking up? At what point (figure) do you say ‘this works’ or ‘this doesn’t’?

How do you service a 2.1 million portfolio without being positively geared? what’s your safety net if neutrally geared? Is it really your property, or is it your parents’?

If it is positively geared then you not only can services 2.1 million but you can services billion or unlimitted amount of property.

If it is neutrally geared then you also can services unlimited amount of property!

It is a bit harsh, don’t you think? If one does not have the property then why would one said so?

Kind regards

Chan Dollars
[Retire Young, Retire Rich] [strum]

doing this, costs me nothing, yet both properties are looking after one another, then through the beauty of offset gearing, my whole income from my job is not effected, while still at the same time my portfolio grows…

… my safety net is open, as im position of my own income + a few of the properties can be offloaded at anytime…

… lol, of course this is all my own property, ask many of the guys who i meet up with, they have seen statements and contracts of proof of me purchasing them.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million

Hi Richmond,

i do have a partner, but not in doing my deals, my partner is a CPA, but also we do a thing called a domino effect, when getting closer to our LVR limits…

…. this is one little secret ive never told, yet only 2 people on this forum board else know about the “domino effect”

…. this is one of the biggest techniques, but only a very few know this.

Cheers,
sis

People 4get that by saving just $3 a day & investing it sensibly
over a working life, you’ll end up with around $1 million