Ausprop,
Here’s an ad below from your website. I have a question but I’m finding it hard to paste it all here for some reason. Anyhoo:
Karratha
Positive Cash Flow !!! Be a part of the resources boom with these brand new, large 4 bedroom 2 bathroom family homes. These homes are an ideal offset to your negatively geared properties.
Lot 331: $425,000
Ausprop,
I just wanted to ask how the above is positive CF and can replace negative geared property get like $850 rent a week? How can it be PCF without the use of depreciation and tax return?
kay henry
ooh – this is a bit close to advertising. good question tho, I will put together a year 1 financial summary (not allowed to do projection these days!) and post it on the Project Info page.
http://www.megainvestments.com.au
Extensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
but you are right – it will rely on the substantial depreciation benefits and the high rents – $650 per week it is based on
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Boy this is an add, 100 percent.
I remember getting my butt kicked for doing similar when i first joined.
Are we allowed to advertise stuff now?Kevin
This is one member asking another member about their business. Kay is actually questioning something on John’s website. This happens all the time.
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksHi,
IMO this kind of discussion is fine. Just my 2 cents. It’s positive that there is scope for questions to be asked and answered by those forum contributors that also offer services.
cheers
Don Nicolussi | Mortgage Broker - Home Loan Warehouse
http://homeloanwarehouse.com.au
Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
HEY !!
Thats my property…
So I can post the figures right??
Using typical lvr of 80% would allow loan of $340k
Interest at 7% would be $23.8k
Rent at 600pw would be $31.2k
Rates, taxes, management, insurance should be approx $5k
So there will be a surplus (pos geared)of approx $2.4kDepreciation may make it slightly negative on paper, hence generating a tax refund which will make it more cashflow positive.
kp
now THAT is an ad!!! [biggrin]
actually I am not interested in advertising on here at all and attend here purely out of interest, so I shall remove my web link in a minute.
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
remove your website address and mobile no NOW if you are the person honour your words
already done….
I don’t like it. You look naked!
Put them back up so I can pick up your posts easier!
The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksYour website is useful. Did the spiel work?
I might add one to my indiscreet signature!!!
))The Mortgage Adviser
http://www.themortgageadviser.com.au
[email protected]
Essential LinksJohn,
I’m sure you know this was a legitimate question to you. On $650 rent (in karratha??) for a 425k property, it seems negatively geared to me. Neg gearing is all about depreciation and tax return. The reason I was asking is because it sounds like a negatively geared property wrapped in CF+ clothing.
On the face of it, 650 X 52 divided by 425k is slightly under 8% yield. I work out yield not on LVR but on total purchase price.
Wanna help out here, John? I’m not advertising for you- I don’t do that- it just seems like we might be calling apples pears here.
kay henry
I’m not trying to advertise the property…
Was just adding some numbers to clarify the situation.These properties tend to sell to the local market anyway as there is more demand than available properties at the moment.
Kay does have a point….based on the market price its a bit touch and go. Depends what interest rate you are paying I guess.
kp
it’s a fair call Kay – the promotion of the Karratha properties was written up when the price was looking closer to $350k. of course it all comes down to gearing but when you run all the numbers thru a calculator, $650/wk on $425k will be negative unless you put in a lot of equity. Unfortunately I can’t control the market and prices, like everywhere, are racing ahead. I have seen a well known marketing company promoting $250 a week on $250k as CF+ and shaken my head… in the interests of not wanting to be a misleading promoter of such material I shall follow their lead and relabel it as ‘high cash flow’ !
http://www.megainvestments.com.auJohn Carroll
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