[js2Member@js2Join Date: 2003Post Count: 758]

March 13, 2004 - 3:19 pm

That doesn’t read right! And i don’t know where the edit feature is gone on this site.

I ment i wouldn’t want the wrappee to get a bad deal.

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

March 13, 2004 - 3:15 pm

Hi,
Here i was thinking i didn’t get a reply. I didn’t get any subscription email.

Yes,.. it gets diffucult doesn’t it [], so many variables. Need to take care that you get it right!
I think with 25 years and no hassles of property managment and things. Wrapping seems ok given the right curcumstances.

It adds another responability on my shoulders, because i wouldn’t want the wrappee to have a good deal.

Ok well if i got them figures right, then i will take that on as the way wrap set ups go.

Onward and upward i’m still learning , thanks for that little insite on that.

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

March 13, 2004 - 2:48 pm

Three years until you can claim anything thru a boken up relationship , marraige or anything.

Anything less then three years and he/she can make a cival claim for something like, if you decide to take of with his stereo.

Six months living together is an old thing of the past.
Least unless it’s different in different state, this is in Victoria.

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

March 13, 2004 - 2:06 pm

Quick calculation , and thanks for asking to check the figures, because it give me chance to check the figures over.

Can you get the price down a bit, now i did one lots of numbers on your numbers. you know some things vary a bit in the end result, but i got around what you got.

Now for the second one i factored in a lower mainenance rate of about 4%. And did it based on if you could get a few grand off the price of the house.

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11 Second Solution:

Rent = 180
Occupancy rate ‘3 Weeks’ = 94.23%
Solution = $84800.00
Asking price = $89000.00
Deposit 20% = $17800.00
Other closing costs = $3025.00

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Morgage details:

Loan P&I = $71200.00
Interest rate = 7%
Term = 25 Years
Weekly loan repayments = $116.13
Total repayments for life of loan = $150969.00

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Summary:

Total annual rent = $8819.20
Total annual morgage = $6038.89
Total annual costs = $2885.00
Total annual cashflow = $-104.69
Total funded costs = $20825.00
Risk free return = $833.00 bank interest rate of 4%.
Annual Cash On Cash Return = -0.50 %
Cashflow Positive Weekly = $-2.01

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…..[V]…………………..[V]………………….. [V]…..

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Based on if you could get property price down a bit and a lower maintenance and too maybee manage it yourself. the figures didn’t come out a whole lot better. though i gave it the thumbs up for this one because around $26 a week in your pocket each week is not bad. I rekon if there’s a will there’s a way with this one. Though it only just scraps in[]!

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11 Second Solution:

Rent = 180
Occupancy rate = 100%
Solution = $90000.00
Asking price = $85000.00
Deposit 20% = $17400.00
Other closing costs = $3025.00

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Morgage details:

Loan P&I = $67600.00
Interest rate = 7%
Term = 25 Years
Weekly loan repayments = $110.26
Total repayments for life of loan = $143334.00

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Summary:

Total annual rent = $9360.00
Total annual morgage = $5733.65
Total annual costs = $2259.40
Total annual cashflow = $1366.95
Total funded costs = $20425.00
Risk free return = $817.00 bank interest rate of 4%.
Annual Cash On Cash Return = 6.69 %
Cashflow Positive Weekly = $26.29

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

March 13, 2004 - 1:33 pm

Good words of wisdom John.

And good long winded post.

I could listen soak in and absorb all you have got to say all day!

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

March 13, 2004 - 12:48 pm

That’s right you have got to be critical! Higher deposits and you will end up losing money. I don’t see iether of these being attractive. Although one makes $34.54 extra cash a week, the deposit is 50%. rather then the only numbers chaging in the first one is 20% deposit.

Property bought on these figures at 20% deposit.

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11 Second Solution:

Rent = 140
Occupancy rate ‘3 Weeks’ = 94.23%
Solution = $65960.00
Asking price = $63000.00
Deposit 20% = $12600.00
Other closing costs = $3025.00

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Morgage details:

Loan P&I = $50400.00
Interest rate = 7.5%
Term = 25 Years
Weekly loan repayments = $85.95
Total repayments for life of loan = $111735.00

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Summary:

Total annual rent = $6858.80
Total annual morgage = $4469.53
Total annual costs = $2373.19
Total annual cashflow = $16.08
Total funded costs = $15625.00
Risk free return = $625.00 bank interest rate of 4%.
Annual Cash On Cash Return = 0.10 %
Cashflow Positive Weekly = $0.31

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…..[V]…………………..[V]………………….. [V]…..

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Same property, all the same figures except changing the deposit to 50%.

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11 Second Solution:

Rent = 140
Occupancy rate ‘3 Weeks’ = 94.23%
Solution = $65960.00
Asking price = $63000.00
Deposit 50% = $31500.00
Other closing costs = $3025.00

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Morgage details:

Loan P&I = $31500.00
Interest rate = 7.5%
Term = 25 Years
Weekly loan repayments = $53.72
Total repayments for life of loan = $69834.00

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Summary:

Total annual rent = $6858.80
Total annual morgage = $2793.57
Total annual costs = $2373.19
Total annual cashflow = $1692.04
Total funded costs = $34525.00
Risk free return = $1381.00 bank interest rate of 4%.
Annual Cash On Cash Return = 4.90 %
Cashflow Positive Weekly = $32.54

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…..[V]…………………..[V]………………….. [V]…..

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After experimenting with these numbers. Nothing changed the cash on cash return much more then having a less deposit.

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

March 6, 2004 - 11:49 am

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

March 5, 2004 - 1:13 pm

Based on your numbers. I converted it to the way i do it based on the BuyerBeware template. And the results show that i think you got the numbers right.

I regard this as DEAD, because your not loosing money or making cashflow money, well not mutch $2.75 a week. but that’s if things run perfect. There has been no consideration for any rent vacancy thru the year(s).

I am only just learning about wrap strategies in another thread. This can bunt your cashflow up a little to make it worthwhile.

Alternatively you can put your creative cap on and think of ways so that you get the rent that would make it worthwhile in a CF+ senario. Maybee you can furnish for minimal amount and get the rent up to $110 (maybee after a year or when the current tenant moves out).

11 Second Solution:
Rent = 100
Occupancy rate = 100%
Solution = $50000.00
Asking price = $45000.00
Deposit 20% = $9000.00
Other closing costs = $2850.00

Morgage details:
Loan = $36000.00
Interest rate = 8%
Term = 25 Years
Weekly loan repayments = $64.12
Total repayments for life of loan = $83355.00

Summary:
Total annual rent = $5200.00
Total annual morgage = $3334.37
Total annual costs = $1748.00
Total annual cashflow = $117.63
Total funded costs = $11850.00
Risk free return = $474.00 bank interest rate of 4%.
Annual Cash On Cash Return = 0.99 %
Cashflow Positive Weekly = $2.26

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

March 5, 2004 - 10:43 am

It’s doesn’t happen anywhere else.

I don’t beleive it’s an IE problem. Though i have found a way around it, i just have to adjust.

And drop them down instead of forcing them behind.

It’s def bizarre and i havent seen it any where else, forums, web sites or in general surfing! I thought it must have been something in the SNITZ forum softwhere that does it.

There is something making the loaded page once completed the loading process!,”to force it too focus” which means basically to bring it to the front.

It will generally be a line of code in the html that says focus(); at the end of it! It’s a Javascript function!

Thanks for your help.

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

March 5, 2004 - 9:56 am

Lawrence, good on you for persuing this!!!

I live in a rural town of about 400 down in greener Victoria, where it’s not so mutch of a droubt and understand about these people and the things you’ve been trying to say and explain.

Don’t worry i’ve been quit surpized for ages about what the city fold think of ‘us’ , ‘it’ in rural life[].

As Steve Mcnight says, “There’s good people willing to rent everywhere”. But his niche was larger metro towns. And why wouldn’t it be! He’s from a metro town i beleive and lived most his life in larger towns, don’t quote me on this but i think that’s Melbourne.

I have two minds open, one to invest in rural towns and one option open to invest in larger metro towns. If i can get anything out of my father , i will sit down and ask him one day to go back over and tell me what tenants have done in this town and how long they rented for, you know etc. He’s been here all his life, his parents all his there life. And l’ve been here all my life, accept went to a few metro towns for a few years. But i’m back home now.

I’ve got a lot more thought, but that will do, better go for now.

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

March 5, 2004 - 3:23 am

Would you not put 20% on the sale price of the property? Which was $45.000, with the $7000 FHOG taken out (the amount i would pay for the property for this example property is $38,000) but the market value is $45,000.

In the first example it was:

Loan Principal & Interest = $30400
Interest rate = 8%
Term = 25 Years
Weekly repayment = $54.15

So the deal i might offer a wrapee might be something like these numbers? Is this correct?

Asking price= $54000.00
Offer price (accepted!) = 50000.00
Deposit = 10000.00
Loan P&I = 10%
Term = 25 Years
Weekly repayment = $83.88

$83.88 – 54.15 = $29.73 Cashflow Weekly.

If the wrappee was to rent the property for $125 (after the cosmetics which would have been done by now!) the numbers would be:

Rent = 125
Occupancy rate = 100 %
11 Second Solution = $62500.00
Asking price = $50000.00
Deposit 20% = $10000.00
Deposit + Other Closing Costs = $12425.00
Annual costs = $1990.00
Loan = $40000.00
Cash On Cash Return = 1.19 %
Cashflow Positive Weekly = $2.85

Wrapee would just about break evan(not saying this is what the wrape would do, but saying this is the situation if he did!).

Plus when they cashed you out, you would receive a gain of their remaining loan to you less your remaining loan to the bank.

What does this mean how mutch could it be? So the only other cost associated with the wrap deal is to pay my loan repayments and the properties insurance. Is that right no other costs?

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This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

February 29, 2004 - 7:51 am

No change again.

This seems to be about demographic arrangements.

[js2Member@js2Join Date: 2003Post Count: 758]

February 6, 2004 - 12:11 pm

I’d look into the rental history and see how steady it’s been.

I think pentioners are good esp the elderly.

Based on your figures it would be very cashflow positive. 16 weeks vaccancy a year..each flat, and its still CF+.

I don’t think you could loose.

[js2Member@js2Join Date: 2003Post Count: 758]

February 6, 2004 - 11:51 am

Where is the block? If it’s in town, i cant really think of ways.

For instance i’m looking for a block for storage of a houseboat but it must be near the Murray River or not too far from it and away from where theives might target it. I would easily pay $50 a month to rent it. Maybee something like this might work in your area?

If it’s outta town and there is a good fence around it, can it be aggisted to run, a horse on it, a cow a couple of sheep? Though i tempary electrical fence is not hard to put up.

[js2Member@js2Join Date: 2003Post Count: 758]

February 5, 2004 - 8:06 am

I seen one in Echuca the other day!
‘Holdiday Maker’, they called it. $22k and you rent it for $50 a week.

Seems the caravan park owner was in the best position.

It’s didnt work out to be CF+. I didn’t look into it mutch more after the RE Agent said you have to live in it. And the owner couldn’t rent it.

After just travelling around a bit, i seen dozens of those Jayco mobile unit style homes, in caravan parks. I guess they sell these to rent in some cases, in parks.

[js2Member@js2Join Date: 2003Post Count: 758]

February 3, 2004 - 10:48 am

No

[js2Member@js2Join Date: 2003Post Count: 758]

January 7, 2004 - 2:55 pm

Close stil in school.

http://www.whatpricemyhouse.com

[js2Member@js2Join Date: 2003Post Count: 758]

December 17, 2003 - 10:20 am

Joff, thanks for explaining about that, sounds like a good lifestyle.

Mini, sounds like good experienced advice, i made a call to the State Revenue Office today and it is 6 months. Also found out about the Stamp Duty from the same place and it should have been $650 and if calculated at a vendor counter offer of $32000 would be $568. Made a call to a solicitor and thier advise was thier charge would be $720 in most ideal ‘buying a house situations’. So with these three corrections would probably reflect something more realistic. I will edit the main post at some time as this seems to progressively keep getting more realistic!!
Thanks alot.

[js2Member@js2Join Date: 2003Post Count: 758]

December 15, 2003 - 2:24 am

quote:

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I believe that Risky has a very important point for you to consider.

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Absolutely..i aggree…a very important piont!! For the record i will edit that into the first post in the downside.

Risky, How mutch rent do you think this house would get in that area?

[js2Member@js2Join Date: 2003Post Count: 758]

December 14, 2003 - 2:36 am

Bless you too.

That’s the way to go to do a few exercises you’ve got the right idea. Each day i calculate a new scenario to get familiar with it. And calculate it with different figures, it’s amazing how the figures change as far as the outcome you get at the end.

Qu 1). Bor – I’ve edited the post above to change that. Is for Other Borrowing Costs!

Qu 2). Yes well that’s right it is a guideline, i don’t think your being to conservative. And probably a good measure if one is going to invest in a small town. It’s hard to tell when you (i) haven’t physically inspected the house (that’s the next exercise I’m gunna do).

Qu 3).I’m in favour of thinking your right and will calculate and edit the post sometime with it at 48 estimated weeks rent. And we’ll see what the outcome is.

The Houseboat should be a lot of fun compared to what im doing now. I’ve never been to the Murray, well i remember travelling over it once or twiss. I’m going to Echuca for couple of weeks soon to check out a few things at the river. Will checkout and go thru a few houses while im there.