Positive Cash Flow

[WebBoard]

Reply: 4.2.1.2
From: Neil Smith


WOW, Thanks everyone, I was hoping for a few replies & got a novel to read.
It seems I'm not the only one who is interested or confused on this subject.
But I think my question has been answered, yes they exist,but you've got to look hard & do some research( this forum seems an excellent place to start).

Thanks again( I only put the question up about 23hrs ago)

PS I think I've got a lot of reading in front of me!

 

[geoffw]

Positive Cash Flow- Seninars

Reply: 1.1.1
From: Geoff Whitfield


Just to add to this thread- as if it needed adding to.

Attending a seminar (from Margaret Lomas or anyone else) MAY have to be treated with caution. ATO is looking at the issue- see the thread "Seminars" posted 17 August (http://bne003w.server-web.com/read?86463,30) for some issues.

To me, the bottom line is that it's not a given fact that a seminar is deductible- as it seemed in the past. It may have to be justified. Or else you use Dale as your accountant when making the claim.

 

[Rixter]

Reply: 4.2.1.3
From: Rixter ®


Hi Ayesha,

Can you give us a few more details as to what suburb , price paid , weekly rental, amd type of property you have purchased as a real life example for others to ponder?

©

Happy Investing,
Rixter®

 

[WebBoard]

Reply: 4.2.1.3.1
From: Darren B


I have agree with Richie Rich. How can a person who has only 7 properties, write books and sell seminars for 4k a pop? 7 properties is OK, but it's hardly tycoon stuff. Go buy a book, its cheaper. Actually buy Jan's book. I've read Margaret's book and all she is on about is getting tax breaks. Its not positive cashflow and you will be waiting a long long time, to live off the income.

 

[tonyd]

Reply: 3.2.1.1.2.1.2.1
From: Tony Dixon


Ian wrote:
>As for the value of some
>seminars...no question there!
>I would love to do one on
>Trusts or Renovations...Doidge
>springs to mind. I have read
>and researched both of these
>fields and know that I would
>benefit greatly from a quality
>seminar/workshop.

(From memory Ian lives in Perth?)
You may/may not know that Dale was due to appear in Perth sometime in the next few months to present his seminar. He is obviously a very busy man though and I've heard no news of an updated ETA.

As for renovation seminars... if GD & PE are looking for a novice Perth investor to buy a rundown shack and sit by and watch while they add $100k+ in value over a weekend - all for the purposes of instruction of course - then I am happy to nominate myself

cheers, Tony

 

[DaleGG]

Reply: 3.2.1.1.2.1.2.1.1
From: Dale Gatherum-Goss


Hi

The whole idea of more seminars was put on hold during July to Sept because of my business. I'm happy to do something later in the year if there are enough people interested - with or without Freestylers.

Dale

 

[Rixter]

Reply: 4.2.1.3.1.1
From: Rixter ®


Hi Darren,

Im just curious when you say its not positive cashflow and it will be a long long time until you can live on it.....Are you suggesting that you live on the rental income from the ip? If so can you give us a brief example how this can be done?

©

Happy Investing,
Rixter®

 

[Mike]

Reply: 4.2.1.3.1.1.1
From: Mike .


Hi Folks,

Another contentious positive cashflow debate with an equally contentious seminar debate. Now there's an explosive cocktail.

I think it's pointless buying the sort of cashflow properties that Lewis mentioned:

"typically property in small country centres where capital growth prospects are limited."

You still have to fork out deposit and buying costs, then ongoing fees and maintenance costs. and finally selling costs. If the property has little or zero growth over the holding period then your overall profit may be negligible.

Some people may think these properties are ideal wrap properties but I think not. A good wrap property should appreciate in a reasonable period of time (5-7 years max) to allow the tenant buyer an opportunity to refinance and cash the wrapper out. The incentive for the tenant buyer to get into wrap finance in the first place is to eventually remortgage to a normal first mortgage at a lower repayment rate. Most bank mortgages, I believe, are paid off in under 15 years. Probably because borrowers sell-up and buy again during that period.

Given that people have an urge to upgrade, as a wrapper, it would be unreasonable to expect someone to pay wrap finance for 20-30 years because the cheap house they bought won't appreciate very much. If this happens, the tenant buyer is likely to shoot through leaving you with a dog of a property you may find hard to re-sell.

The moral of all this is that growth must be the first consideration with any property purchase.

As far as seminars are concerned, I share the same views as Ian Parnham as expressed in post # 16. For further views on this matter I found a worthwhile debate on the issue on the Singing Pig forum:

http://groups.msn.com/SingingPig/general.msnw?action=get_message&mview=0&ID_Message=2601&LastModified=4675386110415615047

Regards, Mike

 

[Ross Sondergeld]

EXAMPLE - Positive Cash Flow

Reply: 4.2.1.3.1.1.2
From: Ross Sondergeld


Hi "Rixter ®",


Positive Cash Flow...


You said, "I'm just curious when you say it's not positive cashflow and it
will be a long long time until you can live on it.....Are you suggesting
that you live on the rental income from the ip? If so can you give us a
brief example how this can be done?"


REAL EXAMPLE... (as at today)

Buy price $ 180,000 ish

Rent $ 460 a week

You do the numbers... ???



Outline of property - 1 house and 4 flats... rural area. Cashflow +




P.S. Please don't email me to locate the property. It has been posted purely
as an example of a REAL property as at today... that can be bought in a
rural area in Queensland. Cash flow positive - growth prospects minimal.


Ross Sondergeld

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[WebBoard]

EXAMPLE - Positive Cash Flow

Reply: 4.2.1.3.1.1.2.1
From: Rick Otton


if you've got enough left over to buy some little umbrella drinks.....is that positive cash flow?
Rick Otton