capital Growth

A

Anonymous

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From: Anonymous


Capital growth is king
Cashflow is queen
 
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Reply: 1.1
From: Rixter ®


WB, I think you've Aced them
Happy Investing,
Rixter :)
 
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Reply: 2
From: Andrew Pennisi


How many properties can you hold with a negative cash flow ????? maybe a few.
How many can you hold that have a positive cash flow ??? as many as you can find...
You can not eat capital growth, take my word for it i have tried.
 
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Reply: 2.1
From: Rolf Latham


Hi

I used to also think you cant eat your CG.

Guess what, as usual, I am often wrong but never in doubt.

Your loan structures and "cashflow" creation tools ala Navra can in a lot of instances be used to eat a bedroom :eek:)

Ta

Rolf
 
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A

Anonymous

Guest
Reply: 2.1.1
From: Anonymous


The capital growth can finance the negative cashflow.
Where can one find properties that give a positive cashflow anyway.
Steve
 
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Reply: 2.1.1.1
From: Michael Croft


I wasn't going to post until next year but I couldn't resist.

For the anonymous Steve, I went through a cashflow positive property on Sat. It's showing 10.4% on purchase price and its in a good growth area too! I let you know all the details AFTER I've bought it ;^)

Michael Croft
 
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Reply: 2.1.1.1.1
From: Rolf Latham


MC

You mean youre not going to divulge the location ?

Do you really think that someone would pinch it from you ?

Ta

Rolf

PS Now where are those car keys :eek:)
 
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Reply: 2.1.1.1.1.1
From: Even Steven


Can't wait to hear about it, Michael. According to the education I got all properties and negatively cashflowed in the beginning.
Steve.
 
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Sim

Administrator
Reply: 2.1.1.1.1.1.1
From: Sim' Hampel


And where would that education be from Even Steven ?

 
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Reply: 2.1.1.1.1.1.1.1
From: Even Steven


Sim
Now that I think about it I guess I just figured it out that way. I suspect I may be wrong. Naturally I'd be really interested to know how, where and when people have acquired positively geared IP's.
Steve
 
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Reply: 2.1.1.1.2
From: The Wife


Michael,

I saw one that shows that kind of return on the weekend as well, I'm about to do what I said I would never do, I'm about to enter the Canberra market!, now get away from my property :eek:)

TW
~Life is a daring adventure, or nothing at all~
 
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Reply: 3
From: The Wife


Capital growth is king
Cashflow is queen

and together they have rich little babies

TW
~Life is a daring adventure, or nothing at all~
 
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Reply: 2.1.1.1.2.1
From: Michael Croft


So am I about to see how good your technique is!!??

See you tomorrow at the auction ;^)

Michael Croft
 
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Reply: 3.1
From: Steve Navra


To TW an MC,

What's so bad about the Canberra market??
Purchase older - reno and hey presto!
Good rentals to boot.

Regards,

Steve
 
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Reply: 3.1.1
From: The Wife


Steve,
MC LOVES the Canberra market, I dont like it, but I am warming.

TW
~Life is a daring adventure, or nothing at all~
 
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Reply: 3.1.1.1
From: Stirling Reid


The hypothesis is that the inner city areas have high capital growth and the outer areas have low capital growth.

But looking at the statistics from Residex for the "Brisbane Average Capital Growth for Houses for the Last Ten Years" (as at March 2001) this hypothesis does not hold up.

Based on Local Government (Council) Areas.
Brisbane City Council 4.38% pa
Redcliffe 4.12
Pine Rivers 5.29
Logan 2.68
Redland 5.04
Gold Coast 5.47
Ipswich 1.62
Calboolture 8.3
Kilcoy 3.55
Caloundra 5.18

Brisbane City Council 4.38% pa Capital Growth
Non-Brisbane Council average 4.58% pa

For Average Rental Yield for the last ten years.

Brisbane Council 6.7% pa
Non-Brisbane Council average 7.68% pa

This can be explained to some degree in Brisbane, by the fact that there are 3 major growth areas (Sunshine Coast, Gold Coast and Brisbane). This means that there is fairly uniform growth over Brisbane. This growth has been low in the past 10 years but is increasing.

So why not go for gold, high yield and high growth. Buy in an area of high yield and there is also a high probability of getting high capital growth, subject to other criteria of high land content etc.

(As I do not have the Sydney data, no data for Sydney has been analysed)

Any comments? Stirling
 
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Reply: 3.1.1.1.1
From: Rolf Latham


Hi Stirling

Sydney Local Government Data is indeed available, and reflects the inner ring theory quite strongly, with the usual exceptions.

Ta

Rolf
 
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Reply: 2.1.1.1.2.1.1
From: Owen .


So MC, how was TW's technique? And who won on the day?



Owen

"Gambling promises the poor what property performs for the rich – something for nothing"
 
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Reply: 3.1.1.1.1.1
From: Michael Croft


Hi all, I didn't end up going to the auction something better has come up ;^) The address for any interested is Cordia Place Rivett ACT, Raine and Horne are the agents.

The property is a three bed two storey townhouse in a block of three (end unit). ACT housing trust sale at short notice, it only had a two week campaign. Well built and in good condition with double carport and private courtyards - area undergoing gentrification.

Should have sold for around $105k (haven't checked) and rent out at $200-220pw with minor reno.

For those who know, Rivett is one of those areas that Simon and Julie used to exit the rat race - affordable with good returns and cap growth.

And for Rolf, I have lost two deals to lurkers on the forum so I am cautious about details now!

Michael Croft
 
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