There has been alot of discussion about the property market changing. In Steve’s latest newsletter he issues a warning about this.
My question is simply this . If I find a property that fits the 11 Second Rule in a good area do I still go for it or not? if all the criteria adds up…
Absolutely, I would. Great deals can be found anywhere, anytime. No matter what stage the market’s in there are plenty of gems to be discovered!
Why not. If it is positive cashflow in a good area, it would be a very good buy. usually anyway!
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Thanks guys. I guess Steve was referring to the buy and hold stratagy for CG purposes
Yeah well.
[blush2]I guess I am one of those people who is way way cautious. We have our own home which is worth about $550.000. We owe $65,000 on this. We also have a share portfolio worth around $10,000. We have no other debts. (other than two children lol).
Is now the time to take the plunge into property investing?
I have seen units for sale for $90,000 rented out for $180.00 a week – this seems to match Steve’s criteria. But I am afraid there is a catch.
Also, I know of a country town that has absolutely nothing for rent. Should I buy there?
Any advice would be gratefully accepted.
Regards Vaness88
Hi Martin and Vanessa,
Finding a property that meets the ’11 sec’ rule is only one aspect to property investment.
The property and location also need to stack up in terms of long and short term viability and sustainability.
Consensus seems to be that properties meeting the 11 sec solution are harder to find as ‘off the list’ purchases. There needs to be greater focus on looking at potential properties from a slightly different perspective to see if ‘it’ can be made positive.
Whether or not a particular property or place is right for you will be dependent upon your own investment goals, strategies and long term plans. These matters are critical as they do, in many respects, determine where and what you should be buying.
Derek
[email protected]
0409 882 958
Property investment advice and researched property in quality locations available.Is it a rule ??
Or a quick primary sifting method / guide. I seem to recall alot of caveats hanging off the ‘guide’…these always seem to be dropped or forgotten.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
It is a guide.
It means you don’t have to run the numbers on lots of places. You can dismiss the unlikelys and then do a proper analysis of what’s left: expected rent, mortgage payments, management fees, repairs budget, insurance, rates etc. What you have left, if anything, tells you it is cashflow positive. How much you have left versus what you put in, tells you if it is worth it.
All the best,
Greg
One thing I’ve always wondered… is it really taking people 11 seconds to work this stuff out? I think we should rename it to the 3 second solution.
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