Hi,
I have read a lot about Property Investing and I know this is what I need to do. I have been looking for a property for a while but I am finding it confusing when trying to work out if a deal is Positive CF or not. Is there a formula for helping to calculate this. I am very confused about interest rates, if it is an interest only loan and these payments are tax deducti[weird]ble do they have to be considered in your calculations? I know I am in a good position to invest (have a home worth $600k and only owe $150 on it, But a lot of deals that look CF Pos on the surface when I do my sums I haven’t got one to go Pos yet.
Would appreciate a little clarification. Can anybody put me onto a good Property investing accountant in Sydney’s North West.
Thanks
SteenoHi Steeno,
You have already found out that the CF+ props have dried up since the last boom. [glum]
I don’t think they will reappear till the market drops further or rents shoot up.
Certainly you may find a few in rural areas but these are more risky.
I hate to be a wet blanket but at the moment, an investor needs to be pretty creative to make a prop cashflow pos. Think change of use etc.
I suggest you keep on with the education process, read books etc, network with other investors such as this forum, and most of all dont ever give up.
At the moment it is a matter of positioning yourself for the next few years – no rush in my opinion. Everything is a matter of time and experience.[biggrin]Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Hi
All the answers to your questions are on this thread here mate that has been going for some time keep an eye on it[wink]
https://www.propertyinvesting.com/forum/topic/22689/16.html?sortfield=&sortorder
Nice one Brad44 yes if he has the right attitude he will find the answers in the WIN WIN WIN thread and nice one Giddo keep these newbies out of your backyard mate, put em off the scent, give them nothing and keep them where we want them…In reality just take a look at where these guys like Giddo are living and you’ll get a fair idea of whats going on…And where to find deals…Read through Dazzling’s lines, between them, oh, you’ll need a chainsaw to cut through the sarcasm, but, the young man gives it all away, be it in proverbs and bedazzling psalms but he does…
“ask and you shall recieve”
Sincerely, Jarrah
++CASH FLOW PROPERTY HUNTER
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“be ye angels?”,
“nay we are but MEN!”Yep Jarrah,
On reflection perhaps my post did sound a little negative.[ohno]Truly, I would welcome more new investors to my town, as activity can only help the market. More investors MUST equal higherprices as time goes on. But a bit more competition for the bargains.[ohno2]
Good point about location though. I only buy in my own town as I know it well enough. At the moment I only buy to do small development jobs.
I settle on a place in April, which is a corner block which can be subdivided and built on, leaving existing residence where it is.
On this I should make some SSS in an otherwise flat market.As the market moves closer to equilibrium and a bit of value, I hope to buy some bargains just to hold till (hopefully) the next rush of price rises come my way.
I am lucky here as I can watch what is happening in the larger centres and it happens here maybe 12 months later (albiet to a smaller extent).The last boom was like headlights approaching from over the horizon – we could see it, plan for it, before it arrived.
Not a bad thing to have on my side. It was the same with the more recent decline in prices (about 15%-20$ here)
It had dropped in Sydney for about 12 months before it dropped here.
Because I have had valuations done I know pretty much what the last boom has done for me. It probably wasn’t quite as good as for some others but I am comfy with it.Our stuff went up by roughly 90% over the period of the boom. I am v happy with that.
I am more cautious than some others! (lost ALL my $$$ in business in my 20’s and never quite recovered from this)I will be more ready for the next one too, thanks in part to PROPERTy INVESTING website.
Now I have rambled and forgotten what I am responding to.
Oh yes, yes a bit of negativity there from me I suppose but I am thinking of how I would feel if I was just starting out and the market was flat and I didn’t know much about adding value.
I hope this clarifies[mellow]my previous post a bit.[party]Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
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