$60,000
May be ok for an office worker, but he said he was a professial, to me a professial is a working in a profession, eg lawyer, dentist, civil engineer etc. I would be pretty upset if I went to uni to to become a professional and earned less than $100k,
I use a base rate of 10% per annum....now it may not grow at 10% each and every year from day one....it may even remain stagnate for 3 years...then do a small spurt and suddenly grow 20% in one year....but after 10 years ...and in hindsight on your part it should eventually produce the results...of either a doubling or tripling in market value
then in around 5 years time....your income should have increased dramatically, the little property should have doubled in price.....
I have just found out a relative of mine...she is just 22...earns $400 k pa....
What do you just get a degree and pull 100k straight up, he is only 25 so still green with only few years out of uni(possibly), 60K seems right. The calculations he has done are with his wage static but it will increase in years to come which he has not considered.
I have just found out a relative of mine...she is just 22...earns $400 k pa....and blows it all on overseas hols etc....she is an accountant with a no 1 miner in OZ......
you have choices.....
...
I have just found out a relative of mine...she is just 22...earns $400 k pa....and blows it all on overseas hols etc...
Thats really good money for a young female,
Perhaps the money is not all she is blowing.
Kincella, I think 10% capital gain per year is to much to expect.
I think if you buy you property well, a 10% total return per year is a more realistic figure, made up of the following,
3% general inflation + 4.5% Cashflow ( after cost rent ) + 2.5% actual value growth
$60,000
May be ok for an office worker, but he said he was a professial, to me a professial is a working in a profession, eg lawyer, dentist, civil engineer etc. I would be pretty upset if I went to uni to to become a professional and earned less than $100k,
1, so 5.5% capital growth (this is probably reasonable for a growing market, but I wouldn't count on this at the moment)
2, 4.5% cashflow (aftercost rent) = I assume this means after outgoings. $350000 house, $370 per week rent = 5.5%. So you expect total outgoings to be $3500 per year.... NOT going to happen..... rates, insurance, RE agent fees, maintenance, depreciation.
3, I have put this up before, but people NEVER include the fact that there is significant upkeep... but in this example, you are ALREADY counting your capital growth in a different part of your calculation.
so please explain your claims...
Yes, the tide has turned. Mining boom, first home vendors boost etc.
But, in time, mining will return to normal, and, so will our outlooks.. booms never last forever, especially in a country suc as ours where we offer nothing else (partially because our government is incompetent)
So, eventually it will all tank, when? who knows... China will crumble in a heap at some stage, all superpowers do.
How does that relate to my quote.
1, Note, I said if bought well, Not " If bought any time at any price"
2, Note, I said if bought well, Not " if bought any time at any price on any yield"
3, Yeah, and remember that the figures I used were a very rough outline, It's not going to be exactly that accross the board. I was just offering an outline of the way I think.
Yes, the tide has turned. Mining boom, first home vendors boost etc.
But, in time, mining will return to normal, and, so will our outlooks.. booms never last forever, especially in a country suc as ours where we offer nothing else (partially because our government is incompetent)
So, eventually it will all tank, when? who knows... China will crumble in a heap at some stage, all superpowers do.
Fair enough..
So I guess to correct my calculation, prices have to fall..
Either a Fall or a decent period of stagnation to allow inflation to make up the differrence to bring them back to 'Fair Value',
But to "Buy Well" you would be buying underfair value on higher yield, or buying into a situation where you can increase the yield in a relativily short time frame.
I have been looking within about 10km of the CBD, and most 1 bedroom units are still about 500k. So the smallest starting price is about 500k.
Cash is king atm, even with the recent interest rate cut.
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