By itself it is true, but when coupled with my second point, that is just unsustainable.

Fair comment. The answers though still lie within that supply/demand curve. Remove demand, and prices will drop. Or wait a few more years and rents/wages will close the gap once more.

Values don’t grow linearly – they grow more like a staircase in…[Read more]

Hi Steven,

The example you gave relied on a few things:
1. Organic capital growth which is difficult to come by now days compare to 30 years ago

Really? What has Sydney been doing the last 3 years, and Melbourne too? Brisbane is likely to be next…. all part of the cycle, but then each cycle is different to the one before.

2. Rental incomes…

[Read more]

Hi Steven,

The example you gave relied on a few things:
1. Organic capital growth which is difficult to come by now days compare to 30 years ago

Really? What has Sydney been doing the last 3 years, and Melbourne too? Brisbane is likely to be next…. all part of the cycle, but then each cycle is different to the one before.

2. Rental…

[Read more]

Hi Steven,
I guess you might be one of the younger members of our society. Those of us with some grey hairs well recall how the passage of time plays its part. e.g. If you can find some old magazines, or Google for historical figures, do check out the median values of homes in (say) Sydney from the 1970’s through to present day.

You will…[Read more]

Hi KK,
Wow, what an interesting question. Now, upfront, I am not a lawyer or any kind of professional adviser (just so you know) but others on here are, and I hope they step in to assist you.

Meanwhile, I just wanted to give you the “reasonable man” argument and perhaps a few ideas that at least give you a nudge in a direction that may…[Read more]

Hi KK,
Wow, what an interesting question. Now, upfront, I am not a lawyer or any kind of professional adviser (just so you know) but others on here are, and I hope they step in to assist you.

Meanwhile, I just wanted to give you the “reasonable man” argument and perhaps a few ideas that at least give you a nudge in a direction that may…[Read more]

Hi Investor,

Interesting post, I am surprised that buyers agents would even suggest house/land packages especially because they come at a premium and usually aren’t negotiable from what I know.

Good point – there might be occasional situations where a H&L package can be sold at a discount – e.g. where a builder might be in financial trouble a…[Read more]

Hi Investor,

Interesting post, I am surprised that buyers agents would even suggest house/land packages especially because they come at a premium and usually aren’t negotiable from what I know.

Good point – there might be an occasional situations where a H&L package can be sold at a discount – consider where a builder might be in financial t…[Read more]

Hi Ian,

First of all I would steer very clear from house and land packages in Logan

I’d go further than Simon, and say “steer clear of all house/land packages”. Typically they are a “solution” property. The developers have created a house for a family – and the family pays well for that privilege. Over time, the house may value up – but that…[Read more]

Hi Ian,

First of all I would steer very clear from house and land packages in Logan

I’d go further than Simon, and say “steer clear of all house/land packages”. Typically they are a “solution” property. The developers have created a house for a family – and the family pays well for that privilege. Over time, the house may value up – but that…[Read more]

I did not realize that the banks will try get you to cross-collat and how mortgage brokers will help drag me away from it.

Seemed to me to be their default position – even though I had told them “No cross-coll”, the initial bunch of paperwork would be crossed, until I said “Nup!” and then they would re-do it the way I wanted it. Sneaky bunch…[Read more]

Hi Investor,
I agree totally with Richard – when I was investing, my Broker was one of the most important members of my team. It is all of those “little details” that my Broker knew, and I didn’t, that kept me out of trouble. Like what Richard said – don’t go getting too many hits on your Credit file. Decide on the BEST lender at that time…[Read more]

Hi Steven,
The most common answer to many questions re investing is “It depends!” :p

I spend 50K to do a complete make over of that property,

There are a hundred questions around that – depending on just what was spent on what, (as CIC mentioned in the last post) some may be immediately claimable (in that Fiscal Year) while the larger part…[Read more]

Re Morayfield OTP – here is a example why I wouldn’t be touching any OTP sales in a pink fit. It took me less than 5 minutes to find a 4/2/2 house, newish, with photos showing a really nice interior. It also happens to be on a 700m2 block, not 450m2 – and it is land that increases in value, while houses deteriorate (i.e. better Growth).

The…[Read more]

Re Morayfield OTP – here is a example why I wouldn’t be touching any OTP sales in a pink fit. It took me less than 5 minutes to find a 4/2/2 house, newish, with photos showing a really nice interior. It also happens to be on a 700m2 block, not 450m2 – and it is land that increases in value, while houses deteriorate.

The OTP would be $480k -…[Read more]

Hi Steven,

Now if your question is which strategy is the best for me to reach that goal? I currently don’t have an answer because I am still fairly new to this and thus do not have the experience to determine the best.

And right there, is where I put a whole raft of quetions to you – I was endeavouring to guide you to arrive at your goal. I…[Read more]

Hi Steven,

Now if your question is which strategy is the best for me to reach that goal? I currently don’t have an answer because I am still fairly new to this and thus do not have the experience to determine the best.

And right there, is where I put a whole raft of quetions to you – I was endeavouring to guide you to arrive at your goal. I…[Read more]

Hi Steven,
Good morning! Yes, you make some good points above. And already I am detecting that you are beginning to appreciate that property investing is a way more complex undertaking than you might have thought. You have put some good thought into your comments, and I applaud that – shows you are thinking about it all. Conversely, I…[Read more]

Hi Steven,

Old properties would require a lot of reno work, but new properties generally speaking are sold at premium price, so I kind of feel like I am stuck in a go-no situation.

Let’s look at that sentence of yours :-
“Old properties would require a lot of reno work….” Often true
“new properties generally speaking are sold at premium…[Read more]

Hi Steven,

part of the reason why we bought it is also due to we want our kid to attend that school when the time comes and we live quite a distance away from that zone.

Fair enough – suffice to say there were other (non-financial) reasons to purchase the unit, and maybe those same reasons will have you keep that one. Your call in the end.…[Read more]