[adimisParticipant@adimisJoin Date: 2007Post Count: 7]

August 24, 2011 - 6:11 am

johann22 wrote:

If your painting a room and you fall of ladder what do you do? You get back on the ladder and start painting again. 
Turn this loss into a lesson and turn this lesson into making money in another venture.

Cheers
Joahnn 

Joahnn,
If you fall off the ladder painting a room you normally clean up.
That is where we find out pundit.

It appears as though our esteemed college has other motivations for needing to sell.
The gent is trying to look after his family.

Perhaps this means, you may need to clean up first before climibing that property ladder.

I can't tell you what to do, but when our situation was similar, we chose not to have our PPoR as our largest investment, in fact it was only the 3rd. Perhaps you may consider a similar strategy, I know it isn't as glamorous, but I also value my family.

[adimisParticipant@adimisJoin Date: 2007Post Count: 7]

August 23, 2011 - 12:41 am

PS: Definitely, find yourself another agent… 

[adimisParticipant@adimisJoin Date: 2007Post Count: 7]

August 23, 2011 - 12:40 am

Sam,

Sorry to hear of your predicament.

If you thought it was a good deal to rent to family, and cover the difference in the shortfall.
Then I can only assume that you would still think Its a good idea to rent at a reduced rate, and again cover the shortfall.
I understand the place is negatively geared, but are you also claiming depreciation?
There may be about $3-4K in that extra per year.

At the end of the day 2 years in property is typically not going to gain you massive returns.
There are exceptions, but not a standard deal of this nature.

I say if you are happy to grid it out then by all means continue to collect the rent.
I know for a fact that rents will increase over time and your mortgage will most probably decrease.
Then when property prices bounce back you can always sell at  the profit you were hoping for.

For mine, if you enter a property deal like this, over such a relatively short period, the only people you can expect to profit are the agents, lawyers, banks and government with their duties.

It will all have to do with how keen you are to grind it out?
If I entered this deal with the same thoughts you had, then I guess I'd probably choose to grid it out.

[adimisParticipant@adimisJoin Date: 2007Post Count: 7]

August 12, 2011 - 6:50 am

I'm thinking a land grab out near the beach in Frankston and look to sub-divide.
This will allow you to take advantage of plenty of Government spending on infrastructure.

Time it right, & you might just be able to take advantage of selling in summer, near the beach, right around when the RBA cuts interest rates. Just a little extra bit of extra cream on top<br /;-)” title=”>;-)” class=”bbcode_smiley” />

[adimisParticipant@adimisJoin Date: 2007Post Count: 7]

August 9, 2011 - 3:23 am

hbbehrendorff wrote:

You could build 25 million kings palaces in Australia, Though it doesn't mean people are going to buy them

I have heard this excuse from the property spruikers so many times it makes me laugh. It really isn't a valid reason for anything.

Lets change your statement to something more REALISTIC so that you can invest based on true principles instead of using statements with no fixture to there variable price limits

People will still need affordable housing
People will still need to eat something (Yes thats true, Though it dosent mean there is a shortage of caviar)
People will still need to keep themselves warm & clothed (True, Though it doesn't mean everyone will buy the latest dada attire)

While there has been a housing crisis shortage for the past 50 years, What the spruikers have not told you is that the number of people per household has dramatically fallen in this same time period (this strickly goes AGAINST the so called laws of supply and demand for housing which has caused price rises)

So the truth is that while prices have skyrocketed, supply has also done the same, Which is the opposite of supply and demand

There is only a certain price people will pay for accommodation (be it rent or mortgage) there will be a cap which I think we have already hit where people realize its unaffordable and stop buying. People will board with others and you will see the number of people per dwelling increase, As is already being seen according to this article today

http://www.news.com.au/money/property/kids-who-wont-leave-home-put-squeeze-on-families/story-e6frfmd0-1226111394283

There is over 65 million unoccupied dwellings in China, massive new city's await people to live in them while the population live just outside them in not much more then a garden shed because there income cannot afford the prices the government sets.

while you are correct in saying that people require accommodation, It will not relate in people paying more then they can ultimately afford.

Dear Sir,

You've heard only what you wanted to hear… and then proceeded to continue down the path of over analysis & drawing your own conclusions. If you were truly wise you'd have noted that I spelled it out for thee.
See – "excuse the pun, its not meant literally"

No-one said anything about building kings palaces, nor was it suggested to invest in caviar.
These are conclusions that you drew yourself, and are a reflection of you more than anything or anyone else.

If you are looking for a tip, I'll spell that out for you too – "I'm quite content with my average abode, & my toast and cheese"

Feel free – analyze that , but please dont make it a case of paralysis by analysis.<br /;-)” title=”>;-)” class=”bbcode_smiley” />

Enjoy,

[adimisParticipant@adimisJoin Date: 2007Post Count: 7]

August 9, 2011 - 1:09 am

"…and he huffed and puffed and blew his house in…"

People will still need to live somewhere,
People will still need to eat something &
People will still need to keep themselves warm & clothed.

As long as you've built with bricks (Excuse the pun, its not meant literally), then there is little to worry about.

In fact – "knock knock" –  is that opportunity at our front door?

enjoy…

[adimisParticipant@adimisJoin Date: 2007Post Count: 7]

March 18, 2010 - 5:30 am

Just my 2 cents….
Boom in prices NOT sustainable in the short term.

My observations are that the prices are increased due first home owners pushing up the lower tier of prices and 2nd & 3rd home owners benefiting from this by selling their old homes for upgrades.
Hence what we have today is a concentration of sales in the "middle" to "upper" part of the market.
Hence the inflated skew in the Median.

Sooner or later people will have to service these loans with ever slightly increasing interest rates.
Thus a plateauing of the economy…  This is not a doom and gloom post – far from it. I see people mostly being able to service their new loans. However, it will come at the expense of a slightly modified lifestyle.

The balance will be restored sooner or later – its the law of Science, Economics and Life.

Best Wishes,

---

Insight + Hindsight = Foresight