And Mike’s old book is also being auctioned.

I like it. I think the Auction should go until tomorrow night some time or even Saturday to give everyone a chance to bid.

Make me feel like a tightass!!!!

OK…

Book 1 – $150
Book 2 – $100

Is that more suitable?

Auction both books off. I will bid for them… first offer…

$30 FOR EACH!!!

I had to up the offer as I like the Smith Family!!!

And I don’t want the prize as I would rather see it get auctioned on the site and the proceeds go to charity. I am happy to pay retail for it when it comes out.

Give the book to Mel!

I would love to know how Mike came up with the right answer when the question used 2.25%.

Well????

Can you explain the answer??????????????????????????????

Mike, don’t those selling costs apply to a property that sold for $486,666.67???

2.25% of $438,000 = $9,855, not $10.950.

Have I missed something?

Steve,

If you mean (sale price) minus (purchase price plus closing costs) less (negative net annual cashflow), the answer is $8,350. Are you certain C should be $18,350 and not $8,350?

Sales costs and commissions cannot apply in the answers provided because no answer allows for the $9,855 or the last number would be a 5.

Thanks.. will check them out.

Answer = E

After paying all expenses, allowing for the negative cashflow and selling costs, the return on the initial 100k is a loss. Obviously tax deductions and depreciation were not used in my calculation as they were not provided in the example.

I should also mention that after reading SIS’s post below that I do not agree with any answer. I…[Read more]

That is the main problem. Can’t find good help! Solicitor is on holiday until August and my accountant is not the best.

Where can these be bought?

If you are good with the LOC and controllig your money, it is a great way to go. You have no non-deductible debt so don’t need an offset account. Just use the LOC for deposits and fees and get 80% I/O loans on your investments. Pump all money into the LOC to reduce debt unless you want deductions.

You are in a great position!

I am just about to buy 2.25 Mill worth of property in Sydney under this structure. Just wanted to make sure. No problems meeting the shortfall. Just was mainly concerned with ATO allowing deductions on properties not in the investors name.

I don’t think anyone would consider ‘unlimited’ finance as a bottomless pit of money accessible to buy anything they desire. There are ways to continually get funds made available for further investment but it will be looked at each time further funds are required. Most people will find that the well will dry up with one particular lender as their…[Read more]

Use an interest only investment loan for each property you acquire. You need a new facility for each purchase unless you have heaps of equity. Use the LOC only for deposits and fees secured against your home.

Originally posted by delboy:
Hi All
A question about financing wraps compared with normal IPs. Say you buy an IP and put a tenant in and it is +CSH then you should find it fairly easy to secure another loan from the banks for your next IP as you are earning more income plus you have whatever equity in the home. How does it work with wraps? Ok you…[Read more]

Thanks MA

You’re awesome!!

Does this mean, as a Qld resident, he has to purchase his PPOR in Qld. Are ther any states where you disqualify yourself if you buy your IP before you buy your PPOR?

Can you confirm that:
1. WA is not on for FHOG if you buy your IP first
2. Vic is the same as Qld, ie., he can buy his Ip and still qualify for…[Read more]

yack
Valued Forum Contributor [692 posts]
Posted 15/06/2004, 11:32:36

My Guru is Jan Somers.

No high priced seminars, no wrappacks, no interstate rural properties. Growth v Cashflow balance.

Just good common sense. Her books are a MUST read. Follow here strategies and You cannot go wrong. Read the book on case studies. See how others have…[Read more]

My wife Niki and I work as school teachers, [grad]but our real “business” as per Kiyosaki’s definition is real estate. Since last July we’ve added another 12 Qld properties [shades2], and our portfolio now stands at 16:
* 1 future retirement house -CF
* 3 neutral CF
* 8 +CF as per 11 sec formula
Over the last 12 months, and largely as a result of…[Read more]