After holding a -cf property for 6 years and paying +$2000 in rates a year to the local verotiouse council just because they provide a car racing cricuit in central NSW, I sold for less than purchase cost. I know others that did the same thing. HOwever now, three years later the property is worth more than double. Oh well, live and learn. What I ask is for reassurance that I have my criteria right. the 11 second rule I recon I have under control and have been timed at less than 7.45 seconds. [biggrin] Clarification however is required on Cocr. 15% is after costs not associated with purchase???? ie ins. rates, and other annuals like that? Is there any other ormulas I have forgoten?
I would appreciate any other research tips, like statistics on property trends anyone can fwd to me as well.
Catchyas, Jack
Bit unfortunate that you lost out but hey, luck of the draw, I bought my house 7 years ago, its now triple, I wish I had of bought more..
Whats the 11 second rule, I hear people talking about it all the time.
RUle of half. Buy for $60k rent for $120 PW. Or buy for $40k rent for %80pw. See the half ratio?
All the best. Jaquie.
My rule is every 10K you spend purchasing, you need $15 per week to cover repayments, so if you spend $40K to purchase, you need minimun $60 per week, $60K you need $90 per week..
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