11 second rule

i am just in the process of re reading the book 0 – 130 properties in 3.5 yrs and there was a lot i missed 1st time and i am tagging pages so ican find things quick . this might help you remember
lizzy

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Can you please outline the fundamental principles of this rule. Just the quick evaluation you put onto a property to evaluate viability. It has been a long time since I have used it and am a bit rusty,

Thanks all []
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Gday guys,

sophsi is right to an extent…

if a property is just out side the 11 sec rule you shouldn’t discount it totally.

negotiating the price or putting a larger deposit down can help a property get back inside the 11 sec rule.

hope this helps

[] Powmow []

hi cheryl,

here i will give you an example of what puttin a deposit on a property can do to make it positive geared.

here is an example.

Price of property is $120,000.00, the rental income for this property is $170 a week for example

$120,000.00 at 6% over 30 years = $179.86 a week in weekly repayments. (the rental does not cover the weekly loan amount)

Lets say you put down a 10% deposit, which would equal $12,000.00

Your actual loan amount would only be $108,000.00

$108,000 at 6% over 30 years = $161.7 a week in weekly repayments. (This would cover your loan, as the rental exceeds the amount of $161.7 a week, though after insurance and mortgage protection it would be sitting right on border line of payin it self off)

Hope this helps cheryl

just testing