Hi![biggrin]
This is my first post – i thought i’d just share
something i have found useful in regards to the
’11 second solution’Instead of going through all the calculation,
just know that the 11 second solution is satisfied
if:
For every $100,000 asking pricethere should be $200/week rent.
Easy!
E.g: Property for sale: $500,000
To satisfy 11sec solution :
weekly rent must exceed $1000.00
(i.e. 500,000 = 100,000 *5, therefore $200 *5 =$1000)Hope this is of help[biggrin]
(And i hope it hasn’t been said before.)[blush2]
Hope to be making more posts,
Spooty22Welcome to the forum. You have just completed a book that was relevant in 1999. The 11 second rule does not work now.
Have a look at a newspaper – its Nov 2004.
Do you really reckon you can buy a house for $500k and get $1000 a weeks rent.
We have missed the boat.
You need to buy the new book “grasshopper”
“Never argue with an idiot, as they will bring you down to their level and beat you with experience”
Yack,
Welcome to the forum. You have just completed a book that was relevant in 1999. The 11 second rule does not work now.I couldn’t disagree more. It’s the application has changed, the theory remains as relevant as ever.
To this day I continue to use and apply the 11 Sec. Solution as a rule of thumb to help understand the relationship between:
* purchase price
* current rent
* liklihood that it will be +ve cashflow on a buy and hold basis.Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Open your eyes Yack!!!
I don’t know where you are from or how far you’ve looked. I must be upfront and let you know that I am new to the property investment game, but one thing I do know is that there are properties within and not far from my area that would easily satisfy the 11 second solution.They might not be half-million dollar properties, but a $75,000 property could (and some do!!!) attract weekly rent of $150.
Look a little further than the outer suburbs of Sydney and Melbourne etc. Thanks to Steve’s book, I also dare say Ballarat might be out of the question. These properties do exist – you just have to search harder to find them.
Originally posted by Spanky:Look a little further than the outer suburbs of Sydney and Melbourne etc.
By a “little further” you mean exactly how far out in the nangers?
“Never argue with an idiot, as they will bring you down to their level and beat you with experience”
Exactly that – out in the “nangers” as you put it. Something I have taken note of in these forums is the continual reference to small towns in WA. Don’t get me wrong – I’m not trying to put down the capital cities, but be prepared to travel a few hours to find something that is cashflow positive. As Steve said “it’s the application that has changed”.
These houses I’m talking about aren’t exactly the Tahj Mahal, remember, again as Steve said in 0-130… that you are buying properties for OTHER PEOPLE TO LIVE IN.
Sorry, maybe I should have been slightly more specific. From what I know and have seen, I would reccomend looking at a map and highlighting towns and cities such as Ballarat in VIC (where Steve started investing) or even those like Dubbo, Bathurst, Orange, Wagga etc. in NSW. Then do some research into “sattellite” towns around these, say, within an hours’ drive.
I prefer to invest in quality assets. You are better off with quality in the long run. You go buy your outback properties and take home a few $000 a year and let me pay a little extra and contribute a little in the first 3 years and let me have the capital gains with a capital city property.
Open your eyes. Go read a Peter Spann and Jan Somers book and get back to me.
Hi Spanky,
If something meets the 11 sec rule TODAY after one of the biggest booms we’ve seen I would regard that as a sure sign to stay away from it!!!
Hi Spanky,
im a negative gearer, but i do own quite alot of negative geared properties and i can tell you honestly, over time and bit of rental increase and turning them positive… they have really out preformed my +ve cashflow properties, even after 1 year of holding my +ve cashflow properties, havent had much property gain, yet a few minor problems plus… the cashflow vs the capital gain, hasnt been too great…
in all honestly i own about 8-9 negative geared properties, yet… im able to offset them, and really make them work the dollar hard…
but they have been the biggest attribute to my property portfolio…
in all honesty today, i purchased another negative geared property that soon to settle, but this property which is undervalued and all, i know with in a few months time, i will be able to take a nice 60k appreciation, or equity revaluation….
but… these are the properties that have really allowed me to kill the market, but also fast track my property portfolio…
Cheers,
sisYack, you will be pleased to know that I have taken your advice and purchased Peter Spann’s “How you could build a $10m…”. I am nearly halfway through it and learning quite a lot – good to view property investment from another angle.
Maybe one day, a very wise investor will devise another method altogether, bringing wealth from excellent Spann style capital gains in “quality assets” that also produce Mcknight style cashflow?!?!?!?!?
I hope it’s me. [thumbsupanim]
Cheers,
SpankAge doesn’t negate effort, you can never be too young or too old.
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