Thanks David,

It’s a good starting point, planning to take a drive up there in the coming weeks to check out the whole area. There seems a lot on the market for a town with only 2000 population.

Cheers, Leigh

Thanks Marco []

No Negatives in POSITIVE!
From 0 – 130 properties in 3 years

A real estate portfolio that doesn’t/won’t stall
From 0 – 130 properties in 3 years

A winning strategy in any market
From 0 – 130 properties in 3 years

Thinking outside the square
From 0 – 130 properties in 3 years

The $Positive side to investing for cashflow
From 0 – 130 properties…[Read more]

Maybe a more specific location listing under each persons user name.

Example

Leigh
Member
Melbourne, VIC
34 Posts

Cheers

My suggestion would be this…

Does the bank care where the morgage payments come from? Saying this, if the deal is worth holding onto could you not come forward with the morgage repayments on behalf of the seller to avoid the foreclosure? You may also be able to take this off the contracted sale price (or work out some similar deal with the…[Read more]

The Mystery Deepens

As a part of my ‘creative’ due diligence process i jumped the side fence and had a closer look!

The entire contents of someone’s house, including the kids toys, are sitting in boxes (untouched for a long time by the look of the dust) in the bottom level/garage.

Also, the electricity is still on!!!! What is with that? I know…[Read more]

Hey Freedom, if you took in the bit where they said the seminars have 60-70,000 graduates on their books, did you also listen to the part where 95-98% of people that attend seminars don’t follow their learning through with action?

Don’t forget that a lot of the investors (and want to be investors) will attend more than just one seminar, so that…[Read more]

Oh, and the deal offered… Works well $$$’s as long as the due diligence stacks up and the purchaser has a way of financing.

11sec (or the 2sec!) rule works out at $65k for the combined purchase and they’re only asking $30k.

Hilary,

Are the returns offered permenant rental (with current tenants) or holiday rental? Also, is there any further…[Read more]

Hey guys just thought I’d point out that the 11sec rule probably wouldn’t apply to this situation.

To purchase these caravans you would eith have to

a) pay with cash, in which case you would not have a loan to service and your return on cash investment would be approx 22.5%

b) purchase on a personal loan which would mean your interest rate…[Read more]

I think Robert’s approach of being simplistic is quite deliberate. How many books out there have similar motivational qualities, twice as much detail, yet they’re only another one on the shelf? It’s the books easy reading that helps remove the fear factor and complicity most people expect when entering the world of investing.

And as for a…[Read more]

Hey Guys,

One reason a lot of investors will only buy significantly below MV is so that they can re-finance their deposit out in a short period of time. For example, if my bank will only lend me 80% LVR then if I want to be able to finance out my deposit in a short period of time (in order to keep the ball rolling and purchase another 1) then I…[Read more]

Hi Ally,

Another alternative is to set up a company structure to purchase your properties. This way the income is taxed at the company rate rather than your income rate. There’s also trust structures but I’m not sure on the tax associations with them. Read through previous posts for a bit more info.

Also, according to a Quantity Surveyor at a…[Read more]

Hey gogirl,

To improve your immediate position you may want to look at refinancing your current loan in order to stretch it over a longer period of time. This would reduce the monthly payments and give you a little extra cashflow.

This would of course only be a good idea if you’re going to use that extra cashflow for usefull purposes, such as…[Read more]

Yeah that sounds like a better approach, $350’s only a small cost if you are getting the best out of your solicitor and keeping a strong team together.

Thanks AD []

Hey Guys,

Sorry I’ve been away a few days, lots of posts in the mean time though, you really need to be on everyday to keep up! Interesting outcome with TAILS… Hmmmm, could see that coming!

Anyway, I think my post came across from the wrong angle. It was supposed to be a round about way of saying ‘do the banks care where the 10% deposit…[Read more]

Supposedly most banks will not assess your income as a means of support if 70% of the rental cash flow covers all property expenses (including repayments).

ie: Annual Rent = $100k
Annual expenses = <$70k

This can be done by either a larger deposit each property, the use of a cash flow favoured partner, or a very good purchase!

You will only get…[Read more]

For all those worried about interest rates and real estate prices.

Please correct me if I’m wrong anyone that knows otherwise…

It is my understanding that Australia is a highly developing country. It is also my understanding that Australia is behind many other countries in development, and ahead of a far greater number still.

If trends are…[Read more]

PS. The capital growth in example 2 last year was estimated at 25% (suburb is under renewal).

A question to everyone out there ‘is the QLD property market at a different point in the investment cycle (boom/bust) than Melb & Sydney?’

Hey Kirby,

As a renter myself in Melbourne I first thought like you are – who in their right mind would pay $500/wk rent a $250k property, especially seeing as I live in a brand new townhouse for $280/wk valued at $380k!
Anyway, here’s the $$ on a couple of properties I came across recently on a trip to QLD that might motivate you a little to…[Read more]

Hey guys,

Just a question on what the 11sec rule is you’re talking about.

I’m guessing it’s along the lines of – if a property costs $100k the rent will need to be approx $200/week for positive cash flow? Similar to how I look at properties but I’ve just never heard of it called the 11sec rule.

Cheers []