Hi Steven,
What an interesting muse !!

Unless they propose negative gearing cannot be used to offset the investor’s own investment portfolio, in which case that will probably kill off the invest altogether and cause some very serious consequences to the economy…

To me, this question really comes down to “Where does ‘negative gearing’ beg…[Read more]

Hi Steven,
What an interesting muse !!

Unless they propose negative gearing cannot be used to offset the investor’s own investment portfolio, in which case that will probably kill off the invest altogether and cause some very serious consequences to the economy…

To me, this question really comes down to “Where does ‘negative gearing’ beg…[Read more]

Hi Naomi,
From the info you provided, you sound like you are in a prime position to do just that. I haven’t done that myself, but the good-looking chap right on top of your post (advertising the one-day seminar) is doing this and showing us all how to. Get in on his course (I’ve heard it is almost full in Melbourne, so don’t delay). I am sure…[Read more]

Hi Naomi,
From the info you provided, you sound like you are in a prime position to do just that. I haven’t done that myself, but the good-looking chap right on top of your post (advertising the one-day seminar) is doing this and showing us all how to. Get in on his course (I’ve heard it is almost full in Melbourne, so don’t delay). I am sure…[Read more]

Hi Naomi,
From the info you provided, you sound like you are in a prime position to do just that. I haven’t done that myself, but the good-looking chap right on top of your post (advertising the 1day seminar) is doing this and showing us all how to. Get in on his course (I’ve heard it is almost full in Melbourne, so don’t delay). I am sure…[Read more]

Compound Interest is great – but what effect do yearly expenses play on your compounding investments?

I stumbled over a post from a year or so back – it shows just how well compounding can work. But this time, it has a twist…. It ALSO shows how much damage can be done when the compounding is accompanied by expenses along the way (be they…[Read more]

Hi KDL,
As a non-resident, I guess you are restricted to “buying new” – am I right there? If so, it limits your choices somewhat – but as a general rule, I’d be looking to buy in a settled area rather than in outlying suburbs. Perhaps developers are doing “urban infill” in Southport that could suit you. Though land size is smaller (where…[Read more]

So who else spotted my earlier mistake?

Back a few posts I had said this:-

TODAY, it has all changed surely (???) Let’s say a $500k loan over 30 years must be repaid at $16,667 per annum but Interest is currently only 4.5%, so Interest paid is $22,500. Near enough?

This must surely mean that Principal repayments are now taking up nearly 45% o…

[Read more]

Hi Stevie,
The author confirmed its sale on Dec 26th.

Benny

Hi Sammy,
I had no issues that I can recall – I had bought two over the years – they went ahead just like any Private Sale. One difference that I have heard can come about are in trying to get agreement from “interested parties” (i.e. the beneficiaries of the Will).

e.g. Where there are (say) 5 children who will all get a portion,…[Read more]

Further to that, OS, I just read a piece in my email from the Motley Fool – in essence it said something like “These are headlines you won’t see!” and went on to list how all news is about “today” – e.g. xyz share has plummeted 10%, (shock, horror) and quite ignoring the fact that over the previous two years, that same xyz share had grown 35%.…[Read more]

Hi OS,

It would seem that if there is a drop in values, the magnitude of any drop might well vary between states and regions.

It would have to, wouldn’t it? Truly there are multiple markets involved, and multiple factors all interacting. e.g. Sydney and Melbourne have had great growth, and have now dropped away some of that growth, while…[Read more]

Hi Micksta,
A few extra thoughts, thanks to your added information:-
1. The medians you quote for East and West ($565k and $445K) are wildly different to what you are wanting to look at buying (new $330k or old $260k). Am I missing something, or are there some screaming bargains in Burpengary?

2. On the subject of medians, there is a lot to…[Read more]

Micksta,
Run the numbers to get an idea what each +ve or -ve of either option will cost. Without knowing such numbers, it is hard to make good decisions.

e.g. What would maintenance of a 10year-old townhouse be expected to cost? Would it be $2k pa, or $5k, or $10k? Compared to that, what is the cost to you of paying $100k more on a…[Read more]

Hi Micksta,
Older properties also (often) have a larger block of land associated with them, making the purchase of the older property even more enticing. Many wish to buy new – but we often pay a price for wanting that. Older properties tend to offer better value in most cases.

Main thing though is that new estates often sell based on this…[Read more]

My son updated me – the project is “off and running”, thanks to those who contributed toward reaching that initial funding goal. Search for “Furzaid” to keep in touch as he strives toward his bigger goals.

My hat is off to the man!

Benny

Hi Fiona,
Some good words from Steven there – maybe some thoughts appeal to your current situation?

My thoughts are that the current situation calls for caution – i.e. have a little bit spare cash in your back pocket, and don’t go stretching. Maybe for you, that means selling one to bolster others. You haven’t shared any numbers, so you…[Read more]

Hi Toby,
From my recollections of what others (particularly Terryw) have said, I think your accountant might not be right. But then, I am no adviser – so you must depend on others.

Look for Terryw to pop up – and did you check out those links yet? I’m pretty sure Terry shared some really useful and “not well-known” info re CGT in those…[Read more]

Hi all,
A recent discussion re whether going from an IO loan to a PI loan would help serviceability led to some interesting learnings. From a MB’s perspective, it seems that a lender will only approve an IO loan by calculating it as though we were paying PI (Principal and Interest) and at a higher rate (Qualifying Rate). i.e. The lender needs…[Read more]

Hi all,
A recent discussion re whether going from an IO loan to a PI loan would help serviceability led to an interesting discussion. From a MB’s perspective, it seems that a lender will only approve an IO loan by calculating it as though we were paying PI (Principal and Interest) and at a higher rate (Qualifying Rate). i.e. The lender needs…[Read more]