In it, it basically says that the current property boom is being driven by investors in a way not really seen in Australia, or any other part of the world, before.

The increased spending is not in line with the increased purchasing power…[Read more]

Your COCR will depend on how much you actually borrow, the repayments on that loan, rates, insurance, management fees, etc.

Checking the COCR is part of what some people here call “due dilligence”, ie use the 11 second solution to…[Read more]

No one can predict how far prices will fall once the bubble bursts.

IMO for anyone trying to start investing, buying a property now could have serious…[Read more]

Norm – Cheers.

Dino

“If you don’t know where you are going, every road will take you there.”

Not one of these is in a capital city, the areas which filled the top 10 for the past several years.

What does this mean. Regional areas are catching up with the cities.

If cities are set to…[Read more]

If you are tossing up between renting and buying from a purely financial point of view then I say buy.

Find a home where an interest only loan will be the equivalent of what ever you are prepared to pay in rent, plus expenses if you want to include them.

Buy it and live there.

Save your money to buy further investments or what…[Read more]

“People are poor because they choose to be poor”

“I worked hard at school, so I deserve to earn more money than some one who didn’t”

What a load of crap!

Most people are poor because they don’t know how, and don’t have the skills to be anything different, and have no real reason to change. Yes…[Read more]

Invest – to commit money to earn a financial reward.

I think the important thing for you to do first is create a budget and stick to it.

If you live with your parents and pay no rent, you should be able to save money, no matter what your income.

If you can’t, then that means you will always struggle to create wealth.

Steve’s book…[Read more]

I put a house on the market and sold it in 2 hours! (Did I sell it too cheap?)

Thing is, my friendly real estate agent told me a local bank manager was expecting a slow down very soon in our area.

Why?

Two months ago he had 15+ loan applications on his desk…[Read more]

Leviticus 25:37
You shall not lend him your money at interest, nor give him your food for profit.

Deuteronomy 23:19
“You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest.

Psalm 15
1 O LORD,…[Read more]

TV may not have started the boom, but it has certainly thrown a lot of fuel on the fire.

Now it is suggesting that the boom may be over. Rates are rising,…[Read more]

Does that make me the biggest 80’s loser?

And I have a Commodore 128, ’cause it’s twice as good as the 64.

Now, can some one please tell me how to stop the theme to “Greatest American Hero” playing in my head?

Dino

“If you don’t know where you are going, every road will take you there.”

Yes the 11 second rule only applies where interest rates are substantially below 10%, since it only represents a gross income of 10% of the loan value.

If interest rates rise to 8% or more than you will have substantially less of your gross income to cover all other expenses.

Dino

“If…[Read more]

Divide the estimated weekly rent by 2 and then multiply by 1000 to give a purchase price that should be cash flow positive.

eg Est rent = $200/wk
divided by 2 = $100
multiply by 1000 = $100,000

This gives you a 10% return on the purchase price.

ie allowing for 2 weeks vacancy per year
$200/wk x 50wks = $10,000
$10,000/$100,000…[Read more]

He is in a different class than the other two, and last night proved it once again.

The judge’s can see it, the studio audience obviously see it, every one I speak to see’s it, yet he almost got ousted last week.

Cossima’s phone bill must be…[Read more]

France and Ireland is the other game. For my money, Ireland to make the QF. I’ve watched their past two matches,…[Read more]

I don’t really know, but I would like to relay the following story. This really happened to me, and it has changed my life for the better, even if only in a small way.

Ten years ago, I was backpacking through Europe. A friend and I decided to take a bicycle tour for the day, and met another guy on the…[Read more]

Ok, they’re not going to stay low forever, but what indicates they will rise any time soon?

My feeling is that as the recent increases in the dollar begins to adversely effect business growth, and the current account deficit, the presure will be to keep interst rates low to prevent a recession.

This…[Read more]

Using the ABS figures for the last census, 18.5% of employment in the local Gladstone area is in Manufacture. It is generally considered that most other employment, particularly in areas such as Gladstone, is provided by the…[Read more]

From Steve “The Bible is clear that you cannot serve two masters, and that you must choose between serving God and serving money.”

At the moment I work for money. That makes me it’s servant.

I want my money to work for me. That makes me it’s master.

By this logic, and this is what I…[Read more]

I, or should I say my family, had this exact same dillema only three weeks ago.

In the end we chose to sell.

Why?

Because we needed/wanted to spend some of the cash.

After doing the sums, I figured we could spend the amount we needed to, put the rest into our PPOR loan and still be better off by at least $10 per week due…[Read more]

Ten years ago, “big city investors” drove the price of local properties up 50-80%.

After 18 months the boom subsided, and prices stalled.

Within 2 years, prices had dropped by 10-20%, although some people still managed to get good prices from “big city investors”.

Over the next 6 years, prices stayed…[Read more]

Amazing Race has had 4 series and four gay couples, the block had a gay couple, and I know that there are others that I just can’t think of at the moment.

Dino

“If you don’t know where you are going, every road will take you there.”

I didn’t start this thread to make fun of “McLeods Daughters”, as fulfilling and easy as that may be.

Start another post on that topic if you want.

I want to know what TV shows really get up your nose.

I won’t be surprised one bit if the most popular choice is McLeods (’cause it really is bad), but can we at least get a…[Read more]

How on earth Cossima has got so far is just beyond me. She misses way too many notes.

Pualini is hot and cold, but did well last night. She did…[Read more]

Where are the upsets (no, Samoa losing by 13 points to England is not an upset)?

Can anyone name one match where the favourite has not won?

I’d even be happy with more close matches.

Average winning margin 39.4
Average winning score 51.3

Games won by les than 10 points – 4 in 30

Australia…[Read more]

3. Survivor
2. The Amazing Race
1. West Wing

Also used to be any Star Trek series, but Channel 9 does sucha pitiful job of showing them, I got frustrated and gave up.

At least 7 is getting better at showing Amazing Race, though its usually several weeks behind the US, and I find out who won on the Internet.

Dino

“If you…[Read more]

Am I too late to get involved?

Have all the prime BSS’s been sold already, and how do I get started as a newbie?

Can any of the experienced BSS investors please help me out?

I also received an email telling me of…[Read more]

That is totally different from arguments about “dole bluddgers”. I was one myself for about six months, and it gave me a new perspective.

Yes, there are people who rort the system.…[Read more]

Dino

“If you don’t know where you are going, every road will take you there.”

Dino

“If you don’t know where you are going, every road will take you there.”

I did that last weekend with “Rich Dad, Poor Dad”.

Loved it so much I’m going to go and buy a copy.

“0 to 130” isn’t in our local library yet.

I already spend as much time as I can scanning the internet. I can only do it from work though, and I actually do have to do work some time.

Melbear, thanks for the kind words, your sincerity…[Read more]

Kind of make you wonder how we all got here in the first place before people were paid to have kids.

I don’t think people should be paid to have kids. Too many already are. The more you give peopele the more they will think it is there right to receive it.

There is also scientific concern about maximum sustainable population levels due to…[Read more]

We actually came up with that idea after I bought the book, although the book had nothing to do with it. Ice creams for the whole family for less than one was going to cost!

I’m sorry if I came across as angry in my last post, I’m not.

I have many friends with no kids who basically spend money however they like. I used to do that…[Read more]

One thing I would like to expand on though is the issue of the $30.

Cash flow is king!

I do not have a lot of spare cash to spend.

Most of my money is tied up in my mortgage. It is currently on a no frills loan deal, and to redraw against it costs me $50, so I am not going to dip i…[Read more]

Chocolate!

I think I’ll go and buy a Mars Bar right now.

Dino

“If you don’t know where you are going, every road will take you there.”

In my area rents have increased on average 14-16% in the past three years, while the mean sales value has increased 25-30%.

If values stop increasing today, it will still take 2-3 years for rental prices to catch up.

Dino

“If you don’t know where you are going, every road will take you there.”

Re – structure, I don’t know all the ins and outs yet, but from what I hear, the trust structure seems to be the way we will go.

As for the loan, my understanding is this.

First of all I will put the money in my PPOR loan, then re-borrow it to give to the company/trust. This makes the interest on the borrowed amount from the house loan tax…[Read more]

$30 dollars is a lot of cash for me to invest in a book that I may or may not get any value from.

Buying a book on investing is not the same as buying a novel. It is an investment, not only in money, but more importantly in hope. If people don’t understand the message, or it tells them something they d…[Read more]

Sorry, didn’t mean to frustrate you. I agree with everything you have said, and I’ve read many of your posts, not just the ones here.

I am looking just from a straight maths point of view.

Fudge seemed to be suggesting that it is best to pay off the loan quickly because it saves you money. This is true.

But from my point of view, inv…[Read more]

eg $100,000 @ 6.5% = $6,500

I have an I/O loan and the interest is added at the end of every month.

From the above example for October the amount should be $6500/365*31 = $552.05.

This may not be 100% correct but should be close enough.

Dino

“If you…[Read more]

I got the answer right, but just typed the interest rate wrong in my post.Grrrr![!][!][!]

Funny thing is, I lost more marks in school for exactly the same thing than I could ever count. (With my hand writing, it is sometimes easy to mistake 4’s for 9’s etc).

That’s why I use a computer today, and never do maths on paper.

Still,…[Read more]

I am only new to this myself, but I see it the following way.

The issue is not, which is the better way to get the most out of this investment.

The issue is, is this a good investment.

First of all, forgetting all about depreciation, inflation etc and all those other complicated things that may or may not change during the next 25…[Read more]

I’m still blushing from my previous mistake.

Oh well, back to work.

Dino

“If you don’t know where you are going, every road will take you there.”

Like my signature says, “If you don’t know where you are going…..”

I hate it when people tell me I’m wrong, particularly when I thought I was so clever and had it right.[!]

Put my pride away, and think about things more, not just jump in…[Read more]

Now there is a topic I wish I was better at, and got to do more often.

Dino

“If you don’t know where you are going, every road will take you there.”

Annual Interest = 1.105

After 15 years CV(15) (Current Value 15th period) = $2,000,000

CV(14) = CV(15)/Interest = 2,000,000/1.105 = 1,809,954.75

Repeat 14 more times.(ie CV(x) = CV(x+1)/Int)

Answer $453,412.92

Dino

“If you don’t know where you are going, every road will take you there.”

So how foolish do I feel – it says it at the top – HIT THE DOT.[][][]

Here I was just clicking away and not realising that the minus sign meant a bad score. So the best I have done is 93 clicks in 30 seconds.

New best score 35.

Dino

“If you don’t know where you are going, every road will take you there.”

wait….

wait…

new best 93. Yeah.

I can go home to my family now thinking that I have had a productive day at work after all.

Dino

“If you don’t know where you are going, every road will take you there.”

I always new twenty years of working with a computer would come in handy.

Dino

“If you don’t know where you are going, every road will take you there.”