Agree Doogs that inflation is not at 8-9%. Is the figure used in economics for dollar cost averaging, to compare like with like across time periods. Covers inflation and general devaluation due to increases in costs market place.

Now who said those HECS fees were wasted on me?

Industry averages are worked around approx 8% of “net” sales.

So sell book at avg price of $25 x 10,000 units x 8% = $20,000

Lots of variables involved like earning back advances, returns to publisher, increasing royalty % based on quantity sold (after costs covered), other costs like freight/promotion etc.

It’s really an economic principle rather than a question of buy price and sell price. If you allow for inflation and reduced buying power of a dollar over a period of time you can see how relative costs change.

10 years ago a can of coke was around $0.50, but now it is $1.60. Obviously the item you purchased can’t be replaced for the same amount…[Read more]

We manage our own properties as we have found PM’s to be a waste of space and money. We also rent where we live, which is managed by a property agent, and in almost 4 years we have never had an inspection. We have found that PM’s are perhaps on of if not the most arrogant species on the planet – forget about them returning calls onc the lease is signed.

Personally don’t like them as they have a limited market if you ever want to get out by selling.

Is the 650 net or gross before resort fees such as cleaning, mgmt, servicing etc?

It’s only a 6% return which doesn’t set my pulse racing either. Freestanding houses are a much better opportunity with a wider resale market IMO.

I think there can be a tendency to get caught up in rules and systems when buying property. I certainly don’t use the 11 sec rule, because I find it is short term focussed, and unless I want to buy a hut in Oodnadatta, doesn’t suit my long term plans.

Every investment you make should be looked at for the life of the investment (minimum 5-7…[Read more]

Similar situation for me. My wife has not a lot of interest in property investing, while it is my favourite topic of conversation!

I have to bite my tongue at times as she always takes the negative view while I see dollar signs and potential.

I find it stimulating and fun and would love to do it full time – instead I invest with a friend who…[Read more]

Check out Monopoly Tycoon – you lease city blocks, build rental and commercial properties and try and attract tenants and customers to your aparetments or shops rather than those owned by other people.

Sounds much like the life of an investor[]

Some interesting points made. However if the status quo is maintained nothing much will change. Many boomers do move north in their later years, but many younger people are moving north at the same time for lifestyle reasons. A young market helps property owners more than boomers who traditionally are owners not renters.

Mate – you’ll be hard put to find an area that isn’t a hot spot at the minute.[]

Prices are increasing by over $1k a week – some doubling within 6 months due to the influx of mainland investors. Over 30% of all sales in Tas are now to interstate investors.

I think that there will eventually be a flattening of prices in property. Long term price charts show that property is an ebb and flow area.

Regional areas will probably be more affected by this. As an example, my home town had flat prices for 10 years, buy a house for 80k, sell it 10 years later for 82k. In the past 12 months, every property we…[Read more]

I’d take out Insurance straight away. Always best to be covered in case of unforseen events. We usually get our insurance locked in as soon as our offer is acceepted.

What are we going to do today Brain?

Try and take over the world!!!!

That’s my plan Pinky (and the Brain).[]

Bothwell is a farming type town and has a population of about 7 people, it'[]s way off the beaten track and cold as all buggery. Not high on my list of potentials.

Quite a few of these programs exist – I believe they also have a horse racing one.

Shares are unpredictable (much like horseracing) and anyone who tries to sell a “sure thing stock picker” is not 100% legit IMO.

If you want to invest in shares, do the same thing you do with property – read, study, read some more, talk to some experts like…[Read more]

Apparently Devonport and Burnie have a bit of a rental shortage at present which is strange considering the majority of purchases have been made by mainland investors in the past year.

Has seen heavy buying activity from interstate with many real estate agents having standard orders to buy anything within certain price ranges. Several interstate…[Read more]

I think that the old adage that there are three sides to every story – your side, my side, and what really happened – applies here.

Most people at this forum are pro-wrap as an investment strategy and fair enough too. Terry Ryder is anti-wrap, as is his right. In the middle you have some people who would love a chance to own property, even if…[Read more]

Not to offend anyone but Gagebrook is considered by locals to be a really bad area. It is a good price considering how things have taken off, but you need to balance that against the fact that only people already in that area will want to live there.

Why don’t you contact some of the central Hobart agents and ask their opinion of the area and…[Read more]

It’s not bad if you don’t have to make regular repayments on a loan. Unfortunately dividends aren’t paid weekly so you end up with a cash flow problem.

Shares are a good part of a balanced portfolio. Never a good idea to put all your eggs in one basket.

I must agree that taxes are far too high. This is one of the most highly taxed nations on earth. Imagine if Americans paid 48.5 cents in the dollar on incomes above approx 35,000USD (rough equivalent to 62,500AUD.

Combined with CGT and stamp duty, there is a strong disincentive to invest or get a better job to ear more money.

Perhaps we need an…[Read more]