[
]Hi I’ve been reading Jan Somers book More Wealth from Residential Property. She advises how you should calculate your Nest egg – advising to complete a future budget (as in her book) and to arrive at a net yearly income needed and then arrive gross figure etc. Anyway the arrival of an annual figure doesn’t included rental expenses. Some books recommend rental expenses (excludes interest) as 25% others 1/3rd of Rental Income – in this case a % of your retirement income. So I assume if I wish to Retire on a gross annual income of $60k then really I should be aiming for an annual gross income of $75k so rental expenses are covered($60k plus 25%).I considers Jan’s book the Bible of Property Investment, so I’m curious if others beleive my assumptions are correct.
Also what would other members consider an adequate % of rental income to allow for expenses.
Thanks
Hi Andrew,
Welcome to the forum!
Just a quick question?
Which other books have you read, when deciding Jan’s is like
the Bible of Property Investment?
Cheers
Sooshie []“Giving is a Blessing, receiving is the bonus”
Sooshie,
Thanks for the Welcome.[]I’ve read –
both Jan Somers books, the first two Margaret Lomas Books, Anita Bell’s “Your Investment Property”, Austin Donnelly’s “Realistic Real Estate Investing”. I have perused and have on ordered with the local Library – Graham Airey “The Property Investor’s Handbook”,
and two others who’s Titles don’t immediately come to mind.
There was a list in the forum I’ve also taken note of that I will be lokking at.I’m devouring books at the moment – the last one took 4 days to read, the current one I’ve had for 2 days and will be finished by Tuesday. I hope to be well armed on the topic (as I can be) before I buy my 1st Investment property probably in 2 – 3 mths time (occupational matters currently being sorted!).
Regards
Andrew
Hi Andrew,Welcome to the forum!
Just a quick question?
Which other books have you read, when deciding Jan’s is like
the Bible of Property Investment?
Cheers
Sooshie []“Giving is a Blessing, receiving is the bonus”
Hi Andrew,
I’ve also read a LOT of property investing books and i also agree that Jan Somers has written the “bible” on investing in property for Australia.I’m sure Sooshie would also agree? [
]… unless she can name another great book that sums it all up so succinctly.I also think about 25% is OK to allow for rental income expenses. In fact it can be much lower depending on maintenance, outgoings and vacancies.
Hi Everyone
Couldn’t help but reiterate what Steve suggested in the weekend and that is:
Always work out what your worst case scenario is!!!
That way you are going to be streets ahead of the competition if the economy moves or some other unforseen factors come into play.
Agree that Jan’s book is the “bible” especially as it has so much detail which I find myself constantly referring to.
Two other books I would like to recommend are:
Real Estate Riches by Dolf de Roos
ISBN 0-9711652-0-3Due Diligence Made Simple by Hans Jakobi
ISBN 1-876818-08-5Take care
Dave []
]Hi I’ve been reading Jan Somers book More Wealth from Residential Property. She advises how you should calculate your Nest egg – advising to complete a future budget (as in her book) and to arrive at a net yearly income needed and then arrive gross figure etc. Anyway the arrival of an annual figure doesn’t included rental expenses. Some books recommend rental expenses (excludes interest) as 25% others 1/3rd of Rental Income – in this case a % of your retirement income. So I assume if I wish to Retire on a gross annual income of $60k then really I should be aiming for an annual gross income of $75k so rental expenses are covered($60k plus 25%).
]… unless she can name another great book that sums it all up so succinctly.
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