Negative gearing - WHY???
- Thread starter rugrat
- Start date
That was back in 2006-2007.
I am also selective in some of the areas.....the stuff I bought back then is now at about 8-12%.
Are you still getting the 10% deals now?
I am also selective in some of the areas.....the stuff I bought back then is now at about 8-12%.
Are you still getting the 10% deals now?
sash 7.5%??
finding 8-10%'ers everywhere...
BTW great post agree with your stratergy, sounds good. feel more comfortable with this then LOE.
oh cool cools....
10+ is getting harder to find....
depends what it is, found a little cabin other day would return 30%+ but CBF playing with it as it seems too messy for too little....
my latest deal is a pretty square 10%+ deal... when i say 10% i mean icluding all entry costs aswell included... but off shelf is getting harder as market is trying to shift, being held back a little, but its looking good at present...
i would like to see rents increase some more however i think we are ganna stay put with rents for a yr or so....
10+ is getting harder to find....
depends what it is, found a little cabin other day would return 30%+ but CBF playing with it as it seems too messy for too little....
my latest deal is a pretty square 10%+ deal... when i say 10% i mean icluding all entry costs aswell included... but off shelf is getting harder as market is trying to shift, being held back a little, but its looking good at present...
i would like to see rents increase some more however i think we are ganna stay put with rents for a yr or so....
Nathan,
I am looking at deals further up the food chain...i.e. stuff in the $400-650k. The rents there can be good....found one the other day for 550k with a 650pw rent. That pretty much pays for itself, my numbers as per below:
Interest at 5% - $27,500
Rates - 800
Water - 600
Strata - 2,800
Repairs - 500
Mmmt Fees (5.5%) - $1800 (approx)
TOTAL - $33k
The rent per annum is $33,800 so CF+ 800 pa without depreciation.
The only issue with this stuff is you have to be really get a bargain as the prices are heading down not up in a lot of areas.
Also, seems to be less competition than stuff under 350k in Sydney.
I am looking at deals further up the food chain...i.e. stuff in the $400-650k. The rents there can be good....found one the other day for 550k with a 650pw rent. That pretty much pays for itself, my numbers as per below:
Interest at 5% - $27,500
Rates - 800
Water - 600
Strata - 2,800
Repairs - 500
Mmmt Fees (5.5%) - $1800 (approx)
TOTAL - $33k
The rent per annum is $33,800 so CF+ 800 pa without depreciation.
The only issue with this stuff is you have to be really get a bargain as the prices are heading down not up in a lot of areas.
Also, seems to be less competition than stuff under 350k in Sydney.
one big expense you forgot....
OSR Land Tax, on 550k building im sure that there would be a land tax of say 2-3k per year....
but yeh agree, there all diff opportunities out there at present....
just protect yourself with cals on best fixed rates iunstead of variables bcause if market moves could be dangerous.
with your massive cf+ im sure you'l find some $$$ to cover the $40 neg pw tho
OSR Land Tax, on 550k building im sure that there would be a land tax of say 2-3k per year....
but yeh agree, there all diff opportunities out there at present....
just protect yourself with cals on best fixed rates iunstead of variables bcause if market moves could be dangerous.
with your massive cf+ im sure you'l find some $$$ to cover the $40 neg pw tho
Onto that one already...still have $130k in unused LT credit as I only have 4 IPs in Sydney (all units).
The stuff I am looking at are T/H....the OSR land value quoted to me was about 90-100k which I am bit dubious about...so checking that out.
The next one will need to cover most of my land tax....which is about $1600 per 100k of OSR land value which tends to be less than commericial valuations in most instances!!!...ouch!
I am also looking to trade one of my lower ones (i.e. sell as a strong market for low end) and but another T/H. The prices on these are unbelievably low due to the lack of buyers. If it was not for LT I would be snapping up houses in the Northern Beaches....old fibros at low 600s and negotiable! These would have been about 750-800k in 2007. The upside on these are that if you put a low set 4 brm home....they will be worth $1.3m plus in a couple of years.
The stuff I am looking at are T/H....the OSR land value quoted to me was about 90-100k which I am bit dubious about...so checking that out.
The next one will need to cover most of my land tax....which is about $1600 per 100k of OSR land value which tends to be less than commericial valuations in most instances!!!...ouch!
I am also looking to trade one of my lower ones (i.e. sell as a strong market for low end) and but another T/H. The prices on these are unbelievably low due to the lack of buyers. If it was not for LT I would be snapping up houses in the Northern Beaches....old fibros at low 600s and negotiable! These would have been about 750-800k in 2007. The upside on these are that if you put a low set 4 brm home....they will be worth $1.3m plus in a couple of years.
one big expense you forgot....
OSR Land Tax, on 550k building im sure that there would be a land tax of say 2-3k per year....
but yeh agree, there all diff opportunities out there at present....
just protect yourself with cals on best fixed rates iunstead of variables bcause if market moves could be dangerous.
with your massive cf+ im sure you'l find some $$$ to cover the $40 neg pw tho
Lisa,
Whilst it is great to get all the information....be careful of the "analysis paralysis" syndrome. Whilst, I cannot recommend something for you without knowing your situation...and being not suitably qualified - i.e. all those nice certifications and degrees those financial planners have..LOL!
My general and personal view is that one (may not be you - notice the **** covering LOL!) need to pick a strategy and go with it! The biggest risk for newbies is doing nothing.....which translates into "nada", "zilch", or "zero" results.
Best of luck in your endeavours!
Whilst it is great to get all the information....be careful of the "analysis paralysis" syndrome. Whilst, I cannot recommend something for you without knowing your situation...and being not suitably qualified - i.e. all those nice certifications and degrees those financial planners have..LOL!
My general and personal view is that one (may not be you - notice the **** covering LOL!) need to pick a strategy and go with it! The biggest risk for newbies is doing nothing.....which translates into "nada", "zilch", or "zero" results.
Best of luck in your endeavours!
again information overload, great to see different perspectives.
The more I read I feel the less I am learning.
Please keep up the great advice to all the newbees.
ready to buy Lisag
My general and personal view is that one (may not be you - notice the **** covering LOL!) need to pick a strategy and go with it! The biggest risk for newbies is doing nothing.....which translates into "nada", "zilch", or "zero" results.
Best of luck in your endeavours!
This is true Sash.
The great thing about SS is the mix of techniques investors are using here - and their willingness to share.
