Oops……..
Thank you Baloo….you’re quite right. [blush2]
RUSSH….MY APOLOGIES…….I MISREAD THE FIGURE. NOW IT MAKES SENSE!!! In that respect, 160 p/w for 32,500 property is GREAT !
Can’t say I still agree that it is the best way, but if it works for you…..knock yourself out Man !! LOL
Jo
For us small time players +cf is very important.Here in the west you dont make the kind of returns on property like you do in sydney or melbourne.But add a few deals together and you get a healthy pay packet when you retire.
In all the books i,ve read about investing and becoming a millionaire the biggest emphasis is on +CF.
If I dont have a job I cant feed an alligator(-cf property)
So I choose +CF.I do nothing.The tenant pays off my investment.And I get a little richer everyday.
So if I can buy one IP returning $100p/w then surely I can buy more.I only need ten and I triple my pension.Not that hard really.I,m one tenth of the way there already.
Now why would I choose to own a property outright when I can use other peoples money as leverage to get me where I want to go.
If I put down 10% on a 32k IP plus costs my initial cost would be about $6200.If I can get $160p/w rent then i have a good chance of earning about 4500 p/a.this is a return of about 70% or so.Not bad considering if I put the 6200 in an ordinary savings account I would get about 0.001%.
So by spreading my 6200 over 10 properties $62000 I will in effect earn 45000 in passive income.I still have another 100k left to invest,mmmmmmmmmm keep doing the same thing and I have a tidy income.
Now if I leave the 160k in my house and rent it out i get 150 p/w.
I think I know what I prefer to do.Sell the house invest the money live in my bus and be financially independant in no time at all.
I dont see +cf as a bad thing when it works out like that.
Russ.RussH,
I see. That’s cool; whatever works for you.
Just curious though (and again, sorry about the confusion with that extra 0), how many properties do you have? and what is your rental return per week/month on each?
You’re probably doing better than me, and if so…good for you.
If this is being nosey, please either disregard my question, or PM directly.
Jo
Hi guys
From what I have picked up from Russ’s posts, this is his first deal – other than his PPOR. As he states he’s on a pension, he obviously doesn’t have any disposable income to spend on a high growth -ve property. I reckon he has made a great start. I see that he’s also found a second property.
Once he gets his 10th, I reckon he might come over to the dark side and think about buying one of those alligator properties he hates at the moment, as his other props will pay for it for him, and he’ll get the ‘burst’ of equity from it to build his ever increasing portfolio.
Russ, waddya reckon? will you ever come to the ‘dark side’ of growth properties?[evil4]
Cheers
Mel*Bows to RussH* You are on the money ! Good to see some people here with brains. I think we go to the same McKnight school of success.[thumbsupanim]
Yeah, good on you Russ- $160 yield on 32.5k is a good deal in anyone’s books really. Russ, will that rental income affect your pension? Also interested to know if you sold your PPOR yet? If you sell that, you can but a few CF+ props for the income and kill off the pension.
kay henry
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