You know the property market is overheated when...
- Thread starter Aceyducey
- Start date
Hi Dave,
YES! Your thinking is correct.
The way to work it out might be as per the following example:
Annual rental achievable = $15,600
5 year ave yield % in post code = 4.80%
Therefore rental reality valuation = 15,600 / 4.80% = $325,000
Asking price = $390,000 (Therefore overpriced: DO NOT BUY)
Now you do your calculations:
Renovation costs $30,000 + Asking price $390,000 = $420,000
New achievable annual rental AFTER the reno = $20,280
Annual Rental / 5 yr ave yield%
$20,280 / 4.80% = $422,500 and PRESTO . . . you have converted the lemon into lemonade!
Now GO DO IT!!
Regards,
Steve
YES! Your thinking is correct.
The way to work it out might be as per the following example:
Annual rental achievable = $15,600
5 year ave yield % in post code = 4.80%
Therefore rental reality valuation = 15,600 / 4.80% = $325,000
Asking price = $390,000 (Therefore overpriced: DO NOT BUY)
Now you do your calculations:
Renovation costs $30,000 + Asking price $390,000 = $420,000
New achievable annual rental AFTER the reno = $20,280
Annual Rental / 5 yr ave yield%
$20,280 / 4.80% = $422,500 and PRESTO . . . you have converted the lemon into lemonade!
Now GO DO IT!!
Regards,
Steve
Bill,
I will say again that your OPINION does NOT constitute bad publicity. I said that you would not find BAD PUBLICITY on this forum about either Steve or the cashbonds. That is quite different to anyone pointing out the possible downside.
Mark
'no hat, some cattle (but the herd is growing)'
I will say again that your OPINION does NOT constitute bad publicity. I said that you would not find BAD PUBLICITY on this forum about either Steve or the cashbonds. That is quite different to anyone pointing out the possible downside.
Mark
'no hat, some cattle (but the herd is growing)'
For Bill & Mark
Hi,
No point getting into a big debate about what is or isn't good / bad publicity:
We are all entitled to our opinions . . . and this is exactly what the forum is about.
Besides . . . the varied opinions about the cashbond, didn't constitute bad publicity . . . mainly there were many questions about how it might work in good times and bad times.
Michael Croft summed it up best:
Yes it works exceptionally well in the correct circumstances . . . BUT:
You do need to acquire assets that achieve capital growth
It is a reasonably sophisticated structure.
It does need to be part of a well structured plan.
It should not be used out of context . . . meaning that all the other criteria need be adhered to.
Now, lets get back to a very good topic
Regards,
Steve
PS: Thank you to both Bill and Mark . . . you are both great contribtors to the forum, so your opinions are always valued.
Hi,
No point getting into a big debate about what is or isn't good / bad publicity:
We are all entitled to our opinions . . . and this is exactly what the forum is about.
Besides . . . the varied opinions about the cashbond, didn't constitute bad publicity . . . mainly there were many questions about how it might work in good times and bad times.
Michael Croft summed it up best:
Yes it works exceptionally well in the correct circumstances . . . BUT:
You do need to acquire assets that achieve capital growth
It is a reasonably sophisticated structure.
It does need to be part of a well structured plan.
It should not be used out of context . . . meaning that all the other criteria need be adhered to.
Now, lets get back to a very good topic
Regards,
Steve
PS: Thank you to both Bill and Mark . . . you are both great contribtors to the forum, so your opinions are always valued.
Dave,
But wouldn't it be a great excuse to the wife that you can only work 6 hours a day, 5 days a week.
"I'm sorry dear, I'd like to start work before 10am, BUT.........."
"Oops.......is that 4pm already dear, have to knock off now........"
"Well, I'd love to work this weekend dear, but unfortunately the market is closed...................."
Hmmmmm...............I'm sure if even the above excuses were listened to, I'd be landscaping, painting etc. etc. in those other hours........
But wouldn't it be a great excuse to the wife that you can only work 6 hours a day, 5 days a week.
"I'm sorry dear, I'd like to start work before 10am, BUT.........."
"Oops.......is that 4pm already dear, have to knock off now........"
"Well, I'd love to work this weekend dear, but unfortunately the market is closed...................."
Hmmmmm...............I'm sure if even the above excuses were listened to, I'd be landscaping, painting etc. etc. in those other hours........
Originally posted by Alan H
Hmmmmm...............I'm sure if even the above excuses were listened to, I'd be landscaping, painting etc. etc. in those other hours........
Hi Alan.
No, no, no . . . you have it all wrong!
You keep busy on the weekends with education courses . . .
Steve
Dave,
No....no........I'm not talking about the work on IP's to improve the value(I squeeze that in too ).......I'm talking about those million and one jobs that get found for us around the home! True.....this should be all adding value which I'll access but they never seem to end...........or does it just seem that way?
I remember building a playroom a couple of years ago and only having to finish a little bit of painting on the ceiling. Hmmmm........must finish that next weekend I said. It's till not done! The irrigation system backbone is all in......just needs the sprinklers. Ahhhh......I'll do that next weekend. You know the story. I could go on but this post may get very long.
Am I alone with this one?
No....no........I'm not talking about the work on IP's to improve the value(I squeeze that in too
).......I'm talking about those million and one jobs that get found for us around the home! True.....this should be all adding value which I'll access but they never seem to end...........or does it just seem that way?I remember building a playroom a couple of years ago and only having to finish a little bit of painting on the ceiling. Hmmmm........must finish that next weekend I said. It's till not done! The irrigation system backbone is all in......just needs the sprinklers. Ahhhh......I'll do that next weekend. You know the story. I could go on but this post may get very long.
Am I alone with this one?
Allen H
No, not alone !
Owner built 15 years ago, AND still doing 'weekend work'
(funny thing on 1 occassion. Friend came around, visiting, commented on our garden - "great, a self maintaining garden."
Is that like a kit home that builds itself? )
Steve
When's the next 'education course'?
Not that I'm trying to get out of weekend work, but I really need to learn more.
(Is Newcastle ever going to be on the agenda?)
jahn
No, not alone !
Owner built 15 years ago, AND still doing 'weekend work'
(funny thing on 1 occassion. Friend came around, visiting, commented on our garden - "great, a self maintaining garden."
Is that like a kit home that builds itself? )
Steve
When's the next 'education course'?
Not that I'm trying to get out of weekend work,
but I really need to learn more. (Is Newcastle ever going to be on the agenda?)
jahn
Jahn,
We Canberrites used to be included in the privileged, but we now have to travel to Sydney to do the course.
With respect- is Newcastle to Sydney really difficult?
Hey, you can stay with a friend, and claim the Sydney overnight rate on your tax return. (What is tne rate?$150pn? $200?$250?)
Even at $150 pn, that's got to make it about the most financially effective cousrse available. $286 for course, claim, say, two nights at $200 pn.
It's almost free at those figures.
So why wait until Newcastle? You may be able to do better by going to SYD.
GeoffW
"We Canberrites used to be included in the privileged, but we now have to travel to Sydney to do the course.
With respect- is Newcastle to Sydney really difficult?"
Trip down to Sydney is great.
Spoilt up here with less traffic, etc.
(wonders if that is enough bait?)
OK Take your point.
jahn
"We Canberrites used to be included in the privileged, but we now have to travel to Sydney to do the course.
With respect- is Newcastle to Sydney really difficult?"
Trip down to Sydney is great.
Spoilt up here with less traffic, etc.
(wonders if that is enough bait?)
OK Take your point.
jahn
B
brains
Guest
Hey Geoff,
What if you get a tax audit and dont have reciepts? Besides being ethically questionable.
What if you get a tax audit and dont have reciepts? Besides being ethically questionable.
Brains,
If you have receipts for the course, that should be enough. ATO allow you to claim a certain amount for a city- how you choose to spend or not to spend is up to you. I have shown accommodation receipts to my accountant in the past- and he's told me to throw them away, as the allowance was much greater than my spend.
It is supposed to cover food too.
I don't think ethically questionable at all. That's their rules, probably instituted to vastly simplify the whole business of claiming for business travel a whole lot easier.
What is ethically questionable to me is when I invest in good faith in a tea tree project based on a financial planner's advice- then to have resulting deductions disallowed four years later- and be fined for evading tax, and be labelled a tax cheat. But that's another topic.
B
brains
Guest
OK I never heard that one before. Thats nice of the ATO. I thought you were pulling a swifty and claiming accom. when you didnt spend any money. I have read about your tea tree saga previously, its amazing how these companys get away with it.
Not to mention your advisor.
Not to mention your advisor.
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