Buying those things would actually be aiming lower instead? Particularly in terms of both the net worth and cash flow of the family concerned.
I have NFI what you're getting at.
What is your net cashflow from investment properties?
- Thread starter Singo
- Start date
Buying those things would actually be aiming lower instead? Particularly in terms of both the net worth and cash flow of the family concerned.
I have NFI what you're getting at.
My apologies for being too subtle. I will try to remedy that now.
People as exemplified by the child, can be completely full of ****. Other people as exemplified by the parent should know better than to blindly believe all the **** they are told.
Have a development on the go which messes up CF. Looking at just over $600 when that is finished. Very subject to interest rates though and a 1% increase in rates would drop CF buy around $100.
Very encouraging to see people with much higher weekly CF!
Very encouraging to see people with much higher weekly CF!
Singo, we need to chat. Don't you know I have an exclusive deal on new polls now?
Once #2 settles, I'll be throwing in about $140/week after all costs.
This will swell as my income does -- at least during my asset acquisition stage. I'm buying for capital growth so I'll cop whatever negative cashflow that entails.
Once #2 settles, I'll be throwing in about $140/week after all costs.
This will swell as my income does -- at least during my asset acquisition stage. I'm buying for capital growth so I'll cop whatever negative cashflow that entails.
Aren't Ferrari's and playstation 4's depreciating assets or doodads?
That would probably be Kiyosaki's response too.
This is an interesting thread. Given how obsessed some here are with cashflow, it's an interesting revelation.
Why wouldn't you ask, what's the bet that people are blatantly lying?
They may not necessarily lying. Things are not often as they appear to a child.
What if the Ferrari and PS4 were rented or borrowed? Or maybe the owners have a mountain of consumer debt and play with these things to escape worrying about the debt? How much do these things contribute to the happiness of the family, and how long does the happiness last?
Well the purpose of this post is clearly to look at cashflow irrespective of gearing. If someone has small equity and high gearing and still achieves high cashflow, that means they've done more with less.
most people dont look to -ve geared which is intresting.
How can you know this by the poll results?
It's highly possible that those with positive net cash flow are negatively geared.
i know, that why i said it just looks like it based on the figs given to run off.
....not that there is any correlation between the two....
This myth continually perpetuated on the forum that demands high CG = low yield, and conversely low CG = high yield makes no sense to me.
I have experience with properties that exhibits all four combinations.
1. low CG and low yield......seriously - why would ya ??
2. low CG and high yield.....these are OK but I stopped buying these as well.
3. high CG and low yield.....we had quite a few of these early on, but we woke up.
4. high CG and high yield....this is what we have been purchasing for years now.
The myth that pervades this forum that category 4 doesn't exist is simply not true. Category 4 properties are what unleash you from your job.
I'd even go so far to say there is another set of criteria where you can add "lots of work - very active" or "no work - passive"
Believe it or not, there are plenty of properties that are "low CG, low yield and lots of work" that people buy for some reason - torment and self flagellation probably.
There are also properties out there that are high CG, high yield and no work.....these are the ones that make being a passive Landlord a true joy to own. They do exist, but not to the average mum and dad investor.
You're right; there is no correlation between the two. As my asset base swells, so too will my options for hunting strong CG and high yield. CIPs, development and renos can all produce the goods, but for now, what I'm doing is working.
If I don't see an iota more capital growth 'til the end of the year, my 12 month holding costs will have been < 7% of my capital gain.
I'm fine with that.
the poll is misleading - it asks your net cash flow but not over a period.
Well, the opening post clearly states that! In capital letters.
