March 2010 and no crash yet

wealth4life.com wrote:
There seems to be a lot of talk about some price increases lately especially in Victoria but can I share some thoughts with you for discussions … I am in fact writing a report for a bank so I will use some extracts for your consideration.Firstly I am noticing that the low end of the real estate market eg: new H&L estates…[Read more]

mattnz wrote:
This article advises us that the average mortgage in NSW just hit a new record of $414k. That isn’t the average house value, but the average mortgage!!

http://www.smh.com.au/business/westpac-rate-rise-pushes-customers-to-switch-banks-20100105-lsbd.html

Let’s combine that with median household income stats…

Median household…[Read more]

Unreal wrote:
It appears to me, the 2 biggest problems with investment properties are 1. unscrupulous tenants and 2. empty houses.  So, is defence housing the way to go?  I've breifly looked into it, and it looks great to me.  What are the drawbacks?

The point of investing is to also make a profit. Generally speaking DHA homes are in average ar…[Read more]

And its now December almost January 2010. Are we moving the goal posts back again ?

Michael 888 wrote:

devo76 wrote:
I doubt rates will hit 8.5% and if they do they will not be there for long. Look at the blood on the streets last time and our debt levels have not improved. Im thinking around 7%

Hi ya DevoThey will go well above 7 %. Westpac and its Dragon offspring are giving 6.8 % term deposits for 12 months…….a clue…[Read more]

I doubt rates will hit 8.5% and if they do they will not be there for long. Look at the blood on the streets last time and our debt levels have not improved. Im thinking around 7%

Looks like we all see what we want to see. Yes top end has dropped in many areas. But for every example of a drop. Another example can be found of a rise.Sooooo many variables across the country.Fact is the big drops many anticipated   DID…….. NOT…….. HAPPEN.

No real downside apart from sharing your property with a stranger. But if it is set up properly you may not see much of them anyway.Maybe be careful if you plan to do a dual occ one day,The granny flat will count as a residence and in our council's eyes that would make it a tri occ. But if you can get past that hurdle make sure you build it in…[Read more]

Oh yeah forgot to add my initial survey cost $770. As a bonus many builders charge for a site inspection before they quote  but most will accept this survey and drop the charge.Cheers

I am know expert and do not pretend to be but these days i tend to zone out when i hear a claim . " property will drop ##%  in the first quarter of 201? " Sure someone may get it right eventually but most will not. I think you have to think about the area you are investing in yourself more than anything. My area for example is still well below…[Read more]

This is a rough breakdown of what im looking to do. ( sub divide corner block and build on the back)Council contributions $5200Sewer                            $7000Water                             $6000Sewer encasement    $11000  ( building over sewer line so have to encase with concrete)Sewer junction             $1000Demolish existing…[Read more]

This may sound a bit selfish but i have faith that rates will not hit highs that will affect me. The % of my wage committed to loan repayments across all my properties is well below 20 %. With this in mind i imagine as they climb many others will feel the pain before i do and this should be enough to slow things/rates down befor they get to a…[Read more]

I try not to buy toys that lose money these days. That can be done with cars,bikes,boats etc. Just have to buy the right toy. I sold my car and made a fortune. Actually my profit was more than it cost to build my house in 2001. Crazy. Now i have a very collectible ducati. Had offers on that well above my purchase price. Good to know you can have…[Read more]

I have Three properties in Nowra on the NSW south coast.The area  averaged just under 10% pa over the last 10 years although its a safe bet that will not be repeated .Having said that it is a growing area and ticks a lot of boxes for growth. Terry Ryder picked it for his NSW hotspotting report so should do ok eventually.My first property pu…[Read more]

One of my workers spent many years there working at the airport. He said it has a lot of social problems but there are nicer areas. Mentioned shops being boarded up at times. He also said to do an inspection of the footings etc due to movement. Most houses crack up that way. Also as far as rent returns go. They will vary with climate. Good rain…[Read more]

I am currently going through the motions on my IP. 1000 sqm corner block with room at the back. My goals lean me towards keeping it after the house is built.Reason being its total rent return after the build is 50% of what i would be happy to retire on.( It has a granny flat also). So one more property like this and one ordinary one for expenses…[Read more]

I use to worry about the short term outlook a lot but the oldBuy when you can affordBuy wellHold long termrant has really stuck with me know.My latest IP is looking to be cashflow neutral to slightly positve on a full lend on 5 year fixed rates and not including tax deductions. This with the fact that the earliest im looking at cashing in on my…[Read more]

shanematt wrote:
The main concern I have with living in a PPOR is the large chunk of non-deductable money I will be using.Obviously that large chunk of money could be used to buy one or more great investment properties.Tough decision.Any body else think this way?

I have been thinking about this also.The PPOR i am in at the moment is nice but it…[Read more]

to me this is the same old rent vs buy argument. And on a purely cash outcome it can sway both ways. The decider to me is what you do with the cash saved. Let’s say after 5 years you come out $15,000 ahead if you rent. This would show renting wins. But who actually SAVES AND INVESTS this money. Few do. This is why buying wins in my book.