Hi Napalm,
From what I understand, the 11 second rule is a general rule that can produce a positive cashflow property in the current interest rate environment as well as providing ‘insurance’ for if interest rates should go up.
I have done some basic calculations, and on a property that just satisfies the 11 second rule, that requires maintenance at a conservative rate of 10% of annual rental, and where 80% of the property value is borrowed, the 11 second rule still produces positive cashflow if interest rates rise to around 11% (assuming the top tax bracket) NB. I have assumed that no depreciation can be claimed.
Having said this, I can see some disadvantages with the 11 second rule. No-one will deny that the rental return required here is comparatively high, and the traditional tradeoff between rental return and capital growth needs to be considered. In my personal circumstances, for example, I am looking for properties that don’t cost me MUCH per week (as I don’t have the income to support it), but that I can get a relatively good capital growth from, as I want to be able to build equity quickly so I can purchase a large portfolio of properties relatively quickly.
Keep Smilin’
Nick Walkerquote:
I’m sorry but I have looked around all over the country, and I cannot find any properties that meet this first critera of the eleven second solution. If anyone can find such properties for me, feel free to advise so I can buy them. But they don’t appear to exist in the city areas at least. Not even in Brisbane.THE 11 SECOND SOLUTION SAYS THIS;
For example, imagine a house rents for $100 per week. Applying the Eleven Second Solution™ you come up with: $100 (rent) divided by 2 is $50…multiplied by 1,000 equals $50,000. This means the maximum you’d be willing to pay for this property is $50,000.I was very skeptical when I first read the 11 second rule. But believe it or not we actually found a property that fits and it will settle in the next week. Rent $170 per week – Purchase Price $85,000. It is approximately 30 km outside of Brisbane City – hope this helps.
Try http://www.sunshinepacific.com.au i think this web site specialises in positive cashflow properties there use to be a few in Brisy.AB
Andrew,I read an article on you in australian property investor magazine and would be interested speaking with you privately. I am starting out and would like a few pointers!
is it just me or is anyone else over the fact that in the last few weeks (ie since steves book’s been out) this forum has been pumped with “show me where these +cashflow properties are”. practically asking for you to put the piece of property in front of them and just say sign here to become rich in PI, you dont have to do any work yourself.
i know there are obviously a lot of newbies who are all excited and ‘gungho’ since reading steves book, but guys youve got to realise it aint gunna be handed to you on a platter….
over it
Yes Tara,
The Toowoomba area interests me. Would be grateful to receive any information including BA from Toowoomba.
Thanks.
They are around at 10% yield, even in Brisbane
I have one I am looking at now.
In the outer areas, I have just heard of a buyers Advocate
locating positively geared properties around
the Toowoomba area if you are interested you
can email me and I will pass on his details.
Tara.Hi Tara
I would love to hear about this buyers advocate
Thanks
If you can spare me a few minutes please e mail me on [email protected]
Thanks again
They are around at 10% yield, even in Brisbane
I have one I am looking at now.
In the outer areas, I have just heard of a buyers Advocate
locating positively geared properties around
the Toowoomba area if you are interested you
can email me and I will pass on his details.
Tara.Hi folks
people have talked about the internet I’ve just got a mag called Coast to Coast don’t know most of the areas but there seems to be some good deals and no R/E
aaronNow a days (mid to late 2003) it is almost impossible
to find any property that fits the 11 second rule
probably becuase so many people are into Real Estate
buying – renting – selling at the moment.
How about others out there, any luck?I agree Sach.
More competition in Buying drives up the Prices, but also as someelse said, if we all bid low then market prices will have to follow suit.
Obviously alot of sellers and agents are getting wary of the amount of people who are looking to purchase property for $$$.
There is always a bargain as people here keep saying. Just persist think outside the square. Find your own little Goldmine suburb and make yourself happy doing so.
Goodluck everyone. Also this site isn’t too bad if your looking for investments http://www.property.com.au
Cheers
Teylu
(Central Coast NSW)“What have you done to make your life better?”
(American History X)Hi Tara,
I am a newbie to property investing and would greatly appreciate details of the buyers advocate you have mentioned.Many Thanks
They are around at 10% yield, even in Brisbane
I have one I am looking at now.
In the outer areas, I have just heard of a buyers Advocate
locating positively geared properties around
the Toowoomba area if you are interested you
can email me and I will pass on his details.
Tara.[/quote]
Hi 007 licensed to thrill
We act for Buyers in Queensland dealing solely in +cashflow properties.
Whilst most of them are in the regional areas would be happy to try and match your investment criteria.
Cheers Richard
[email protected]There is no such thing as a problem. Just a solution waiting to be found
Richard Taylor | Australia's leading private lender
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