Buying 10 x IP's at once.

Of course, I have no idea about what Oakey is like as an investment, but man, they look lovely for the price, and the rental return.

 

In the day of low doc and no doc this actually happened. The numbers were All smoke and mirrors, but we worked with the system and as long as you had equity/cash for deposits just kept going. Lenders turned a blind eye

Fast forward today, and I know a few who got burnt doing this.

 

I have gone off storage cubicles ...too much administration for too few dollars , too much rubbish left in the units when abandoned

 

I'm sure you're right, but I'd suggest that he's playing with a few more dollars than these units.

 

Haven’t seen storage wars?
Surely there’s something good left behind when abandoned!

 

It does not happen in the real world ...it's just rubbish and cost .this year I will be spending atleast $100k disposing of rubbish

 

One man's trash is another man's treasure.

 

It's a far cheaper way to get rid of a couple of tonnes of rubbish. Rent some storage, then move.

 

Tires ...thousands of tires
Abandoned ...company went broke

 

New, or used?

 

The most unlikely factor in your hypothetical is actually the deposit side of the equation, rather than the borrowing power side of it. The lending market is deep, full of options and borrowing amounts can be fluid/expanded by going further down the market. While lenders further down the pecking order are comfortable deviating from standard borrowing power calculators - they do so on the condition of larger deposits to manage their risk positions.

If you changed 5% to 20-35%, you'd be able to find a way to get it done with some good structuring, clever loan management, and you'd probably need to work with someone relatively well versed in it too. There'll be quite a few hurdles and conditions attached too through the process - its unlikely to be as simple as going to one bank and asking for all the money at one go.

Also, if your personal income/expense situation was also very strong. E.g. if you start with a $20k monthly surplus, each property will take out ~$2k from that surplus. This is because a ~$500k+ loan on a positively geared property you purchase will drag down your monthly surplus. I.e. the rental income banks take doesn't meet the loan expense banks assume. Hence each property creates a deficit. Each property will start to soak up your $20k monthly surplus away, until its no longer there and banks will no longer feel comfortable lending.

 

Used

 

Aren't there places that grind them up to make rubber coverings for playgrounds? Or similar?

 

It cost $300 per ton to get rid of them