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if you pick the property up for 115k your repayment per week should be around $125 per week + expences aprox $45 per week so you do the math these figs are from my own experiance depending on age of property not a lot of profit but a bit………………………………………………………………………….
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Haven’t had the opportunity to read Steve’s book as yet so the 11 2nd rule and such I’ve no idea on its dynamics.However straight to the property I propose to you guys.
130,000 purchase price but could probably pick it up for 115-120,000Weekly rent about 180-200 dollars.
Deposit of 15,000Somebody run through that for me and tell me how it all appears?
if you can find a property like that let me know and ill buy the rest of the town [
] but dont give up hopeas far as negivive gearing goes as long as you have equity in a property you can borrow the full purches price including all costs so no deposit is nessasery if you positive ly gear a property you have to keep your borroed amount down as low as you can so that you make more money week to week.
but in saying that it is still posibal to be able to buy a property with no deposit (equity) and still have a positivly geard investment i bought 2 propertys in april at $125000 (total price borowed 132500) with a rent return of $220 per week althought its not to positivly geared i still dont pay anything out of my own pocket.
just my oppinion………quote:
The whole thing is, if there’s the option of positive gearing vs. negative gearing, which would you choose? Sure it might be hard to save deposits, but if you are negative gearing then you have to do that anyway! Add to that the fact that you’ll also have weekly repayments so saving for more deposits just becomes a whole lot harder.I’ve never liked the idea of negative gearing. It just doesn’t make sense to me to ‘invest’ in a loss. So for me, all I can say is that I agree with Steve’s book. Even if it is hard to find these properties with positive cashflow.
] but dont give up hope
