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  • Profile photo of SwifteagleSwifteagle
    Participant
    @swifteagle
    Join Date: 2006
    Post Count: 34

    How are you all….? I hope you are doing great.

    Today I came to you with a question on a return and I hope i get the thumbs up on this one…

    I need $6,929 dollars to get a return of $13.5 per week Positive Cashflow.

    I am doing all the maths and it looks okay to me…but I want People like you to give me your thoughts about this…
    Thanks

    Additional Informantio…Please Help me….!!!!

    Thank you for your answers and i am sorry for the lack of Info i provided.

    I am 20 years old and I dont have a Property yet, but i am looking hard to find Positive Cashflow properties here in Australia an it has turn out harder than it looked in the books…..So i have gone outside the box and I have found properties in an other Country where i could buy, I know the Place, and people….

    Additional Info.

    Country: X country…not Australia…lol

    Good Things!
    Tax: No tax on the rent you recieve.

    Annual rates: around 80 dollars

    Price for a property in a low income area: you can buy a 2 bedroom house for $6,929 Au Dollars. All paid, including stamp duty and all that….

    Bad Things…

    Tax: There is no tax returns.

    Rent:Rent Returns are low…around 54.23 monthly… which is 13.55 weekly.. thats all for you no tax comes out of it… the rent can increase to 16.5 if an extra room is build..wich will cost around $1000 dollars more.

    Exchange rates: They may change…2 years ago 1 dollar would buy: 1850 xxx now it buys 1600 xxx….

    Risk:

    Water and Electricity are under the property name…so if the tenats leave and dont pay, you have to cover for it, however you can make a contract that make them resposible for the bills while they are living in the property…

    I dont really know what to do.. but the numbers are looking ok for the type of money that have to be put down, an as well i will pay the full property in one hit…
    This type of properties dont even look bad, they are just small and for low income people …

    What do you think…? Any Ideas Or Points?

    Thank you all onces again for your time and knowledge you are sharing.

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Not much info here.

    What effort will it cost you each week?

    What is the risk profile?

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of adambcadambc
    Participant
    @adambc
    Join Date: 2003
    Post Count: 145

    Hi Swifty,

    Simon’s right – you need to provide more information for people to be able to give you advice on this.

    On the surface, you’re talking about just over 7% return on your cash here. If that’s all that you’d be getting out of it, it all depends on the risk and the effort you’d need to put in to get this return. You could simply go to any old bank and get a 5.5% return or better on a term deposit. Risk = minimal. Effort = minimal. And you’re only talking about $2 less per week.

    But there may be other factors here. I’m guessing you’re talking about property, so there may be CGs involved depending on location. In this case your return would be greater than that 7%.

    So if you’d like any further comments, please give us more detail. What type of investment is this? What effort would you need to put into it? What is the risk? Are there any other gains to be made in this, apart from the $15/wk CF? (eg. CG?)

    Cheers,

    Adam

    Oasis Finance
    for your Vendor Finance solutions
    Achieve the Dream!
    [email protected]

    Profile photo of SwifteagleSwifteagle
    Participant
    @swifteagle
    Join Date: 2006
    Post Count: 34

    Additional Informantio…Please Help me….!!!!

    Thank you for your answers and i am sorry for the lack of Info i provided.

    I am 20 years old and I dont have a Property yet, but i am looking hard to find Positive Cashflow properties here in Australia an it has turn out harder than it looked in the books…..So i have gone outside the box and I have found properties in an other Country where i could buy, I know the Place, and people….

    Additional Info.

    Country: X country…not Australia…lol

    Good Things!
    Tax: No tax on the rent you recieve.

    Annual rates: around 80 dollars

    Price for a property in a low income area: you can buy a 2 bedroom house for $6,929 Au Dollars. All paid, including stamp duty and all that….

    Bad Things…

    Tax: There is no tax returns.

    Rent:Rent Returns are low…around 54.23 monthly… which is 13.55 weekly.. thats all for you no tax comes out of it… the rent can increase to 16.5 if an extra room is build..wich will cost around $1000 dollars more.

    Exchange rates: They may change…2 years ago 1 dollar would buy: 1850 xxx now it buys 1600 xxx….

    Risk:

    Water and Electricity are under the property name…so if the tenats leave and dont pay, you have to cover for it, however you can make a contract that make them resposible for the bills while they are living in the property…

    I dont really know what to do.. but the numbers are looking ok for the type of money that have to be put down, an as well i will pay the full property in one hit…
    This type of properties dont even look bad, they are just small and for low income people …

    What do you think…? Any Ideas Or Points?

    Thank you all onces again for your time and knowledge you are sharing.

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    Outside of my experience level.

    Are these properties easily sold? Wil lthey go up in value?

    Sounds like you need to buy a lot to make a decent income – lot of work.

    Not for me mate but I wouldn’t even dream of commenting on it.

    Cheers,

    Simon Macks
    Residential and Commercial Finance Broker
    ***NODOC @ 7.15% to 70% LVR***
    [email protected]
    0425 228 985

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of adambcadambc
    Participant
    @adambc
    Join Date: 2003
    Post Count: 145

    Swifty,

    I’m afraid I’m with Simon – way outside my knowledge base!

    Best of luck though – keep learning and keep asking and you will eventually find all the answers you need.

    Cheers,

    Adam

    Oasis Finance
    for your Vendor Finance solutions
    Achieve the Dream!
    [email protected]

    Profile photo of giddogiddo
    Member
    @giddo
    Join Date: 2005
    Post Count: 152

    Sounds like the biggest question is

    “Will the value of the property RISE?’

    I have no idea, like the others.
    Good LUck![evo]

    Giddo
    http://www.standrewsplace.com.au

    KNOWLEDGE IS POWER

    Profile photo of SwifteagleSwifteagle
    Participant
    @swifteagle
    Join Date: 2006
    Post Count: 34
    Originally posted by giddo:

    Sounds like the biggest question is

    “Will the value of the property RISE?’

    I have no idea, like the others.
    Good LUck![evo]

    Giddo
    http://www.standrewsplace.com.au

    KNOWLEDGE IS POWER

    Hi to all…

    I Dont think the property may rise in value by very much… What i am actually looking for is Positive cash flow…

    I think i am going to look more into it… Other type of properties that cost aroun 30 000 but returns are like $350 a month…

    Profile photo of adambcadambc
    Participant
    @adambc
    Join Date: 2003
    Post Count: 145

    Hi again Swifty,

    On the surface these numbers look great – the key is what surrounds the numbers. This is where your due diligence comes in. You need to be able to determine what the risks are in the deal.

    In my work we sometimes use a tool called a “SWOT Analysis” – it stands for Strengths, Weaknesses, Opportunities, Threats. And it works as the name suggests – you simply develop four lists, one under each heading, and then analyse the results.

    Just conduct a really good brainstorm (another skill that is surprisingly difficult to master – we generally want to subvert our wilder, more innovative ideas for fear of failure or ridicule!), and you will probably get a decent idea of the quality of the deal out of this process.

    Hope that helps!

    Cheers,

    Adam

    Oasis Finance
    for your Vendor Finance solutions
    Achieve the Dream!
    [email protected]

    Profile photo of adambcadambc
    Participant
    @adambc
    Join Date: 2003
    Post Count: 145

    Another quick thought – if you are keen to dig deeper into these deals, feel free to share elements of your due diligence with the forum. There are some very experienced property investors who frequent this place, and you may get some help / advice / suggestions / ideas that you would otherwise not have even considered.

    What I’m trying to say is basically GO FOR IT! Don’t jump in without consideration, but at the same time don’t allow your doubts to overcome your enthusiasm. I think that may be the biggest killer of good ideas – self doubt. So don’t let it kill yours! And use the forums to help you (if you like!).

    All the best,

    Adam

    Oasis Finance
    for your Vendor Finance solutions
    Achieve the Dream!
    [email protected]

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