The story on page 32. I know what you are questioning, she says she is a “stay at home” mom, not a single mom though. Looks to me like she fails to mention her husband/partner at all in the story, and it would be his income that is being used to service the loans.
I have been told if you are married that the house wife can show the husbands…[Read more]
Assuming your rental grows by 3% per annum and assuming expenses at 8.5% total per annum.
You get the following over 10 years
10% growth 5% yield
Cash flow: – $55,361
Capital Growth: $318,748
Net Gain: $263,387
5% growth 10% yield
Negative cash flow: $59,277
Capital Growth: $125,778
Net Gain: $185,056
Note if you are in the top tax bracket the…[Read more]
Yah I put it in an offset account.
The refinance money spent on loan payments is still deductible. The purpose of the money is not to pay off debt, as its all interest only for me. Itâ€™s simply a cost of supporting the rental property.
I couldnâ€™t possibly service all my loans without refinance. I do have a number of cash + properties, nearly all of which I have now made cash – by refinancing. But I just keep going and going. I have such a huge equity buffer now it doesnâ€™t much matter, at any time I can sell a handful or properties and turn the cash flow…[Read more]
There is lots of money building new houses in new estates, 12 months ago in WA you could have bought just about any block and just picked out a cheapish builder and made 30-50k easy. Land Prices have moved since then and house prices have not moved as much, so the land and construction costs have sorta caught up with the established…[Read more]
Refinance and use the money to pay the negative cash flow.
Negative: $500 per month x 12 months = $6000
Refinance: $250,000 (paid) – $350,000 (current value) = $100,000
$100,000 x 80% (loan) = $80,000
Now this will make the property more negative, but you can use an interest offset loan to only draw down as you need. So you should be…[Read more]
I own one in Pakenham. If you are looking for cash flow Pakenham is not the place. You would be looking at about 4-5% returns at the moment. It does have huge population growth, but a fair bit of land left too.
If you are going to buy something with only 5% return then I would look for something beachside in WA.
If you email me the location, price you paid, how many bed bath (ie 3×1 house, 2×1 unit) for your properties I may be able to buy them all off you, fully covering your original costs inc stamp duty, legal fees etc.
email me: [email protected]
If you think the rent is right, switch agents. do it sooner that later. I can’t tell you the number of times I have held on and then finaly swap agents as a last resort and get it rented next day.
1. Keep your job, you will need it to get loans.
2. Do a duplex first. You can get normal residential finance, 3 unit site you will need commercial leanding.
3. Just do it. The experience will be worth more than the profit.
Just a note on your comment, your Morwell property had not gone up any more. Dunno if its just that property or not, but I have a house in Morwell and had thought the same, but when it was revalued this month (by the same valuer that valued it 6 months ago) it was up from 120k in January 2004 to 134k in June 2004.
Maybe they had just…[Read more]
Lets stop talking cashflow and start talking rental return. Rent devided by Price of the property. I know there is more to cashflow than that, ie rates, vacany, interest rate on loan, but this at least gives a more subjective starting point.
I have bought houses in VIC in large regional centres with 8% rental return (bought in the last few…[Read more]
I looked into buying in Iraq a few months back, seemed a logical investment to me… Unfortunately my research told me that non-Iraq’s could not own property. If anyone else finds out otherwise it would be great to know.
You should keep in mind before the major runin with the US and the embargo, Iraq was a rich and thriving country and Baghdad off…[Read more]
The sad fact is, it is better to switch agents than to expect that complaining to your current agent will generate better results. With the “S” agent I had a house that was vacant for a while and the agent said they had someone looking at my house and another house they have, but they were pushing them towards my house because they didn’t like…[Read more]
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