Forum Replies Created
Dean…
Well done.. thats thinking outside the box…
A little off the topic, but how do the tenant separate the electricity usage etc ??Midland… Is your block a development block also??
Its very unlikely your gonna find positive cash flow properties in Perth…
There going to have to be country properties…And they are out there…
Ive seen afew properties in WA… costing 100k with weekly rental of $300pw.. easily meets the 11sec rule..but after a little investigation into the town… was far too risky for me, in the long term…
As with any investment… theres a relationship with Risk and Return…
Just keep on getting more and more information about areas, towns etc… Shouldnt take you too long before you find a prop that meets all your criteria…
No its not positive cash flow…
once you factor in all the cash you’ll out lay it will be costing you money..
e.g.
insurance, prop manager fee, repairs, etc etcBUT it does cover the mortgage payments at current interest rates…
rest is pretty much as Mick INC stated…
You suspect correctly…
you may come out positive, if you have a huge depsoit and loads of depreciation… MAYBE…
but other than that go country… even then I have to say theres slim pickings…Just keep on hunting… Good luck…
Thanks crew…
Simon has been kind enough to run the numbers… So i’ll have some independant information…
Will definitely be wary when dealing with these “mortgage minimisation” people…
“Is someone trying to sell you a Mortgage Minimisation scheme?”
Simon
Yes… thats right.. but Im not sure if what there telling me is completely correct… obviously she’ll be pushing her product, so I wanted to do some calc’s of my own.
From the links on the net .. e.g infochoice, westpac, it look like even though I’ll be on a much higher interest rate, I’d still be better off…
But like Westan says, these may be exagerated.
Confused…
Kelvin
SIS
Yep plan to hold… its my PPOR…
Surely there is a way to make an educated estimate based on monthly income directly put into loan, and average monthly expenses taken out. with different interest rates scenarios…
Regards
Kelvin
Melbear
Yeah ive got the extra repay info… its that tricky little LOC calculation that Im trying to learn alitle more about….Simon
LOC.. the lure of the possiblity of quicker repay…Yeah Im happy with my current fixed… but just wanted to run some figures to see if the LOC might put me ahead at the end of the 5 yrs…
Great to see people makin use of my spreadsheet creation… Yeha…
Its a very simple way to differentiate between what sound like a good deal and what IS a good deal…
Dave
55k and 110pw is quite common to find…
Whats the rental market there like??
Is the population growing/stable??
Whats the cap growth there like??Its those properties returning 12.5%+ which are out there but harder to find…
In the past few months ive seen in WA
19k 75pw.
55k 170pw
55k 130pw
65k 180pw
65k 120pw
85k 240pw
90k 200pw
100k 300pw
115k 280pw
so they are out there… but consider the risk vs return…
I didnt go any further with any of these… as for me I felt is was too risky..
Im still hunting too…No not the MM one…MM has an even smaller population…
Thanks Mel
Will definetely have to give it some serious consideration…
Just have to see if there is a rental market…
Wow hope it moves something like your folk areas…Regards
Kelvin
[email protected]fullout
Drop me a line and I’ll send you a very simple cash on cash calculator which I made…
based on calculations outlined from Steves book.Regards
Kelvin
[email protected]These were just the strata/body corp fee $3000pa…. That’s blew a hole in the one and only +ve cash flow prop ive found…
Im still hunting for those +ve cash flow props…both south and north, but the returns seems alittle higher in the North…Regards
Kelvin
[email protected]Thanks for the reply guys…
Yeah its was in Port but the fees were a killer…I’ll just keep on searchin..
RegardsKelvin
[email protected]tbarrett
The closing costs are calculated by:
IF deposit is greater than or equal to 20% of purchase price then the closing cost Ive put down is 5%, if the deposit is less then its 2.5% of the purchase price…
Pretty general…but good for a rough guide.
BTW its Kelvin not kevin : )
Regards
Kelvin
[email protected]Cash on cash calc now…. now MelBear enhanced… Thanks : )
Kelvin
[email protected]Yep its just a simple straight forward cash on cash calc…
Good stuff Hot Rod
Really glad to hear there still out there …
I too am lookin up north WA… and thinkin of flyin up to have a look…but wont till i can find something that is almost a definite…
If you have any hints in tips about up north drop me a line….Regards
Kelvin
[email protected]
