Am also from SE Qld. Not sure about the baby boomer and interstate investment. Several Real Estate agents I know say still very strong demand from both – and they are driving the market in some areas/types of property.

I think property investing is great, but I am loathe to see a lot of Moms & Pops lose their retirement funds by falling into the…[Read more]

Thanks Captain. I agree with you and I’m not suggesting people sit on the sidelines, especially for their PPOR. See above.

Cheers[]

Perhaps I should put my views first, perhaps to stimulate debate.

It seems to me that if you are seeking to get into the +ve cashflow property market for the first time right now, you should tread warily and be prepared to put in a lot of research, both in front of the PC and on the ground.

As the CBDs and suburbs prices have taken off – and as…[Read more]

Sounds like the sound of one-hand clapping (see Simpsons for solution to Koan) or the tree falling in the forest with no-one around!

Crashy wouldn’t the tax on Super be 30%, 15% + 15% surcharge as earnings over 100K?

Cheers[]

Not knowing Steve or Dave, Dave may be feeling a bit like the ‘other’ Beatle, Ringo. Gee, that says a lot about my age!

Cheers[]

I agree with your concept Hame. Poster on my wall next to the computer – “Beaten paths are for beaten men.”

Cheers[]

I agree with Crashy that Sydney and Melbourne are not the places to buy right now. Brisbane has been going through a ‘catch-up’ so while prices have risen steeply over the last 24 months, properties are not necessarily overpriced. I don’t know about the other major centres.

The Sunshine and Gold Coasts have also risen sharply as have virtually…[Read more]

I agree. Now that many properties within 30 kms of a major CBD are offering 3-4% gross yields why would you buy rather than rent? 18/24 months ago it was a different story.

FHOG also distorted the market somewhat but that has worked its way through the system. So now you have a situation where the bubble has seemingly expanded close to the point…[Read more]

As they say:

“Those who don’t learn from history are doomed to repeat it.”

What better way to learn than observe the successes and mistakes of others? Hopefully we don’t have to make all the same mistakes ourselves (I said hopefully!).

As a newcomer to the forum I find a lot of the posts very helpful.

I agree about cycles, but there is always…[Read more]

To continue the analogy, if you believe that storms may happen from time to time you need to make sure that you have some crops that are storm resistant (+ve cashflow properties for example).

You can then afford some high-risk crops, which if harvested successfully will give higher returns but are susceptible to storm damage(typically neg. geared…[Read more]

There’s flood-prone areas and then there’s Whoaaa!

Cheers[]

Its all personal opinion, but most advisers recommend an emergency fund of 6-12 months expenses in a liquid form (cash or easily and quickly converted to cash).

So your provision appears adequate at the very least. Of course your personal circumstances, security of income, appetite for risk etc. all play a role.

Cheers[]

Real life case study.

A good friend of mine is a Real Estate Agent. They sold 3 units to an investor 12 months ago for $80K each. Rental $165 per week each. A good deal for the investor.

The investor is now putting the units back on the market at $190K each and is expected to get close to that. A good deal for the new purchaser – I don’t think…[Read more]

HousesOnly.

I agree with you. People will do almost anything to avoid losing their PPOR, but if they are maxed out on other consumer credit and interest rates rise or employment drops off they, have little choice.

There is some smoothing as a lot of PPOR purchasers will have locked in at low fixed interest rates for the next couple of…[Read more]

I purchased the Cashflow game about 5 years ago and played it a lot with my kids, then teenagers. It was good fun and taught the kids a lot about investing in assets rather than spending on depreciating non-essentials.

It also showed them how having kids was an enormous financial drain and impediment to becoming financially free! I don’t know if…[Read more]

Hi Guys.

The posts make interesting reading. To me the key issue in property prices is affordability – that is at what point Mr. & Mrs. Average can’t purchase the average house in the average suburb. That’s when prices stall or drop.

I know its a simplification, because issues like international migration to major centres and inter-state…[Read more]

Ultimately everyone’s right! Steve, being an asute businessman, leverages his skills and expertise to produce various income streams and optimise income while spreading risk. The book etc. is part of that.

Anyone who has hit upon a system to make serious money keeps it to themselves until either
a. They have enough money, or
b. The system is no…[Read more]

Though ‘the thread is dead’ I couldn’t resist getting in on this one.

I too got a lot of encouragement from RK’s early books. He changed my paradigm on wealth creation. Not with practical processes (which often were not valid here) but with a concept.

He was ‘a finger pointing at the moon’. Don’t worry if the finger is crooked or not, it’s the…[Read more]

Hi.

I have purchased properties in NZ and Aus while resident in each particular country so I can’t help re. non-resident purchases.

What I can tell you is that the majority of NZ banks are far easier to deal with and much more efficient than the ones in Australia (which is strange given they are virtually all branch operations of Aussie banks).…[Read more]

What you were asking your partner to do was give up 16.7% of their share of the property (reduced from 60 to 50) and increase your share by 25% (from 40 to 50). This to be in exchange for your time and effort in managing the property.

But percentages can be confusing. Lets say the current value of the property is $100,000. Then your partner…[Read more]