Don’t worry, it is just a reflection of market jittery re. US general election, Brexit referendum and other stuffs currently going on in the market. Underlying Australian economy is commodities and the index price has been going down >100bp since its peak in May 2014 ie. a whopping +/-50% drop!…[Read more]

Hi Alistair,

Agree that RBA will reduce interest rates to defend the economy. However, at 2% it is now, there is not enough ammunition to go round. As a comparison, just before the GFC the interest rate was 7.25% and the RBA reduced interest so rapidly – 6 times in a year – to get to 3%.

Mervyn King, the ex Governor of Bank of England, predicted…[Read more]

Final updates re. the purchase.
Settlement was done and dusted on 9 Oct 2015. My first property ever in Brisbane.

Signed the contract on 2 Sep – so the deadlines were:
a. 5% deposit due in 5 working days – this is because ANZ imposes a limit of $10k daily transfer.

b. Building and Pest within 1 week – I missed this date because of…[Read more]

Summarising the long winded essay above:
These conversations are akin to friendly chats over a bbq; the important thing is to share ideas – everything is mulled over and verified when the time comes.
These ideas are important in our learning process so when the time comes we are well informed of the risks / options and develop our strategies a…[Read more]

Oops, I hope my comments have not ruffled some feathers. My sincerest apology if I have..

Can I please clarify my position:
1. This website is akin to bbq picnic chats among friends where more often than not the conversations are invariably about crickets, footie and properties where we all exchange ideas and knowledge.

2. I’m not looking t…[Read more]

Latest Update:

1. My offer to a flat in Bulimba was accepted at $430k, 2 bed 2 bath and 1 parking flat, currently tenanted.
Strata is roughly $3300 pa, rental income is $21,840 pa.

The flat was built in 2002, sales history:
Oct 2002 sold for $265k
Oct 2004 sold for $290k
Jul 2009 sold for $400k
Sep 2015 sold for $430k

I think I get a good…[Read more]

Point number 3 of Steve’s article 3 Dumbest Things Property Owners do in a Hot Market, discusses just this.

And I totally agree. ;)

Cheers,
Cattleya

Hi Sunvi,

Welcome to the site.

Very complicated question you have there. Short answer is, interest rate will definitely go up, even though we currently have higher interest rates. In fact, the level of interest rate is not relevant factor in considering whether it is going up or down.
The relevant factors are macro economics and Global…[Read more]

Hi Zac,

By way of introduction, I am also a participant in this website and am here to learn about Property Investing and wealth creation in general. I am interested in your comment:

So if not property what are your options? I am not trying to challenge, just wondering what and why. I am also thinking, and below are my thoughts:

1. Equities?…[Read more]

Steve,

I have nobody to refer as I am also looking for a good accountant / lawyer. ;) It’s probably a tad more difficult for me to find somebody as I know a bit more about their stuff and therefore know what I am looking for.

However, I think it is best to keep an eye on your properties yourself, do not rely too much on the professionals. I…[Read more]

Hi Steve,

This is a very interesting question, one I still mull over.

Basically all advantages and disadvantages are like jigsaw pieces. You pick and choose the ones relevant to your strategies and hopefully all fit together. Hence you need an accountant / lawyer who understands business / property investing.

Below is the lists of the…[Read more]

Terry Waugh, Stefan Miraglia, KatarinaH, DT your wise counsels are much appreciated and I am taking all your inputs into considerations as I go along.

My status now,
1. Area – Qld 4171 so Bulimba, Hawthorne and Balmoral, for 2-3 bedroom flats. DT, thank you for your input re. 1000s of new developments in Brissy. It gave me cold feet and s…[Read more]

Terry Waugh, Stefan Miraglia, KatarinaH, DT your wise counsels are much appreciated and I am taking all your inputs into considerations as I go along.

My status now,
1. Area – Qld 4171 so Bulimba, Hawthorne and Balmoral, for 2-3 bedroom flats. DT, thank you for your input re. 1000s of new developments in Brissy. It gave me cold feet and s…[Read more]

Hi Bala,

Welcome to the site. And also congratulations on your first steps towards better financial futures through property.
It is an exciting time, but also full of worries because of all the potential issues isn’t it.

Anyway, straight to your questions. In my honest opinion, the question should not be which suburb to buy, but which suburbs…[Read more]

Hi Timbo.

Welcome to the site and hope you find it useful.

Re. your question, you are the only one who can answer that. We have a lot of finance experts around here who’d answer your questions. However the answers will only be as good as information on hand. Given that your question only have limited information, I would answer it from my…[Read more]

Kristy,

I am not sure where Realestate / Domain or indeed other websites get their data from. Data Integrity is always the problem even for ABS, their reports usually come with caveats.

But given our investing purposes, does it really need to be 100% accurate? I think not because there are so many factors determining a good price of a…[Read more]

Hi RP,

I am also in the process of buying. May be it’s a good idea to start a topic on this.

I want to buy in Brissy. I think there is always pros and cons about buying in any part of Oz. It just depends on your circumstances. I also don’t know where to buy, but I think all those arguments – which are usually at high level – are good but…[Read more]

Found this article on how to select Buyer’s Agent:
http://www.realestate.com.au/blog/how-do-i-choose-a-buyers-agent/
It is very useful because, I think, it is independent.

If anybody is interested, there is also the Buyer’s Agent Association website http://www.rebaa.com.au.

I suggest really choosing carefully as:
1. The fees are quite substantial and…[Read more]

Sorry PE, I would like to ask a couple of questions on top of yours. Hope you don’t mind?

So what’s a reasonable fee for a borrower’s agent, please? Do they all provide the same services or do we need to specify what we need?
Rephrasing the questions: is it all you can eat or do we select from a menu? And what’s reasonable?

Thanks,
Cattleya.