PropertyInvesting.com | ErikH | Activity https://www.propertyinvesting.com/members/erikh/activity/ Activity feed for ErikH. Sat, 11 Apr 2026 15:00:02 +0000 https://buddypress.org/?v=2.8.1 en-US 30 hourly 2 ae973559f6c158fd7828f24a7e6b45df ErikH replied to the topic Property bust not here yet ... worse to come in the forum General Property https://www.propertyinvesting.com/topic/4385726-property-bust-not-here-yet-worse-to-come/page/34/#post-4549095 Sat, 02 Oct 2010 03:32:15 +0000 Just another example of poor quality journalism when it comes to property news. Headline states prices dip and will fall further. The dip is 0.2% in August which I doubt very much is statistically significant. The next paragraph then goes on to state that the RP-Date Rismark hedonic index shows 8% growth year to date …

]]> 422ec735c43e874d9f653ee20274e988 ErikH replied to the topic Historical house prices since 1960 in the forum General Property https://www.propertyinvesting.com/topic/4400802-historical-house-prices-since-1960/#post-4629484 Sat, 14 Aug 2010 09:58:42 +0000 Through another discussion I found another very interesting lead on the bubblepedia website:http://bubblepedia.net.au/tiki-index.php?page_id=27  It is an overview of historical house prices from 1880-2006 as developed by Nigel Stapledon of the University of NSW School of Economics. But since bubblepedia is biased by definition I went to the sou…[Read more]

]]> 29366c75f0420152a098751090f70e60 ErikH replied to the topic Historical house prices since 1960 in the forum General Property https://www.propertyinvesting.com/topic/4400802-historical-house-prices-since-1960/#post-4629480 Sun, 08 Aug 2010 06:35:04 +0000 Will have a look at ABS for median income data.Median house price of 8 million in 20 yrs? I don't know, we might be surprised by how high it will be, but I do believe the property markets will sustain their growth in the long term but there will be some potentially significant shifts in our behavior/preferences which will reduce the median price…[Read more]

]]> aff819c7195b8ba7b299be0f250942af ErikH replied to the topic Historical house prices since 1960 in the forum General Property https://www.propertyinvesting.com/topic/4400802-historical-house-prices-since-1960/#post-4629478 Sun, 08 Aug 2010 04:02:45 +0000 Unmester, thanks. Will try to include a graph of house price growth versus IR, but will probably put that in a sepratae article to keep this one focused just on prices. I did make one these graphs in the past I didn’t get too much out of them after than the timing / cycle of interest up, growth down and vice versa. One issue I had was aligning t…[Read more]

]]> e93789ca37dc45008edfe5184d321193 ErikH replied to the topic "Home Ownership Dream Ebbing Away" in the forum Heads Up! https://www.propertyinvesting.com/topic/4397347-home-ownership-dream-ebbing-away/#post-4609463 Sat, 26 Sep 2009 03:31:39 +0000 Wezwaz,Agreed, slumps in the market can and will happen, in fact there is one happening right now in certain sections of the market. What just really annoys me is these economists, professors etc. making huge claims and predictions based on very thin facts and usually biased to one side of the story i.e. it's either boom or bust and you never get…[Read more]

]]> dafafe69f4bc5da57c727de400b7f6a8 ErikH replied to the topic "Home Ownership Dream Ebbing Away" in the forum Heads Up! https://www.propertyinvesting.com/topic/4397347-home-ownership-dream-ebbing-away/#post-4609461 Fri, 25 Sep 2009 16:26:21 +0000 Rubbish article.

The concept that Australian real estate is the most expensive in the world was also outlined in the recent Demographia study, but that study was flawed in many ways: only included US, UK, Canada, Australia, New Zealand and conveniently forgot to include the very expensive markets in Europe. Furthermore these studies never take…[Read more]

]]> 471af7f8c80e071f9f31e27386288cfe ErikH replied to the topic Silly Questions? in the forum Help Needed! https://www.propertyinvesting.com/topic/4397259-silly-questions-2/#post-4609106 Tue, 15 Sep 2009 13:12:34 +0000 Carl, Definately not a silly question in my mind. A very crucial one. It depends on your strategy, if you pay off your IP's you can't deduct your interest from your tax so your are missing the opportunity to borrow money cheaply and increase the size of your portfolio. In principle the other way to get money out of your investment properties is by…[Read more]

]]> 2aa8397ea9d15e4f903c22e5ed977b5f ErikH replied to the topic Help, please in the forum Finance https://www.propertyinvesting.com/topic/4397212-help-please-18/#post-4608892 Sat, 12 Sep 2009 10:55:05 +0000 Hopeful1,First of all, I am no expert so you really need to urgently seek professional support. You have not paid 5 months on your mortgage and even though the bank has agreed to capitalize this for now, do you actually have any formal documentation showing that because of capitalizing these payments your mortgage is not in arrears? What happens…[Read more]

]]> 860b6449351d740b88ddb557fa81de39 ErikH replied to the topic Australian demographics in the forum Toni, Kenny, Thanks, indeed https://www.propertyinvesting.com/topic/4397169-australian-demographics/#post-4608718 Sun, 06 Sep 2009 02:17:05 +0000 Toni, Kenny,

Thanks, indeed the site is still very much under construction, it’s taking much more work than I thought it would be. It will take a few more months to get all the articles done.

I already have many more planned incl. some flash videos and free software if I can get the techi stuff to work.

If you think there is anything missing,…[Read more]

]]> 065ff57ad13f9b27735ab0cdd4c73276 ErikH replied to the topic Australian demographics in the forum I know I should really be https://www.propertyinvesting.com/topic/4397169-australian-demographics/#post-4608714 Sat, 05 Sep 2009 11:13:57 +0000 I know I should really be touting my own site, but since you have specifically asked, please have a look at:  http://www.retireonproperty.com/whyproperty/property-investing-demographics.html   At the bottom of the article are two useful links, one is to ABS data and the oterh to a Bernard Salt presentation. Please let me know what you think abo…[Read more]

]]> 449b3cdc0b6e5698e332dcd0744fbc31 ErikH replied to the topic Which countries can australians buy property in the forum Overseas Deals https://www.propertyinvesting.com/topic/4394094-which-countries-can-australians-buy-property/page/2/#post-4592239 Sat, 05 Sep 2009 05:56:05 +0000 Don't remember exactly, but I think it had to do with getting and using a Brazilian bank account whilst living overseas… that said there are so many overaseas investors investing in Brazil it must be possible…also look into tax policies before you invest

]]> 6cb0e7bf01566438de50835fa988ef39 ErikH replied to the topic Which countries can australians buy property in the forum Overseas Deals https://www.propertyinvesting.com/topic/4394094-which-countries-can-australians-buy-property/#post-4592237 Wed, 02 Sep 2009 10:41:37 +0000 85eternal, make sure you do your due diligence before investing in Brazil, a friend of mine bought a unit in one of the coastal towns off-the-plan and had nothing but trouble in terms of the purchase agreements, getting money into and out of the country etc. I never looked into Brzail myself, so thi is only hear say, just be careful and go into…[Read more]

]]> febff15d64c8d0ea7778e675d41ed676 ErikH replied to the topic Which countries can australians buy property in the forum 85eternal, make sure you do https://www.propertyinvesting.com/topic/4394094-which-countries-can-australians-buy-property/#post-4592237 Wed, 02 Sep 2009 10:41:37 +0000 <font size=”2″>85eternal, make sure you do your due diligence before investing in Brazil, a friend of mine bought a unit in one of the coastal towns off-the-plan and had nothing but trouble in terms of the purchase agreements, getting money into and out of the country etc. I never looked into Brzail myself, so thi is only hear say, just be careful…[Read more]

]]> 229930402c96f484aa4962e372631c22 ErikH replied to the topic Which countries can australians buy property in the forum Overseas Deals https://www.propertyinvesting.com/topic/4394094-which-countries-can-australians-buy-property/#post-4592237 Wed, 02 Sep 2009 10:41:37 +0000 85eternal, make sure you do your due diligence before investing in Brazil, a friend of mine bought a unit in one of the coastal towns off-the-plan and had nothing but trouble in terms of the purchase agreements, getting money into and out of the country etc. I never looked into Brzail myself, so thi is only hear say, just be careful and go into…[Read more]

]]> 2b2a2db40a0383b664ca38ee0ffbdbd9 ErikH replied to the topic Nirvana of Property Investment... in the forum General Property https://www.propertyinvesting.com/topic/4396305-nirvana-of-property-investment/#post-4604375 Wed, 17 Jun 2009 06:06:39 +0000 Fiona, first of all I'd say that it's great to see that you're planning your financial future so early. Don't let doom & gloom preachers deter you from executing your plans, but do you sue their challenges to ensure you have a robust plan and that you are well protected against the downside. I personally believe that Australian property will be an…[Read more]

]]> 975bc76930d70fa61eae15170cb7fb63 ErikH replied to the topic Information re: Cashflow Capital Pty Ltd in the forum General Property https://www.propertyinvesting.com/topic/4396322-information-re-cashflow-capital-pty-ltd/#post-4604428 Mon, 01 Jun 2009 06:50:49 +0000 I have subscribed to their website primarily to help with increasing my understanding / knowledge of the australian property market and since I'm an overseas investor I have to do all my research remotely. I found their website valuable in that I got a lot of insight in where to find cashflow +ve property. Not only the usual suspects of mining…[Read more]

]]> 853ab88b64377fb8657fd6363975c04e ErikH replied to the topic Books by Guru's - Bibles? BS? or Something in between? in the forum Heads Up! https://www.propertyinvesting.com/topic/4395944-books-by-gurus-bibles-bs-or-something-in-between/#post-4602158 Mon, 11 May 2009 05:25:51 +0000 I read most of the books you mention apart from deRoos and may look that up… I also liked Michael Yardney’s “how to build a mutli-million dollar property portfolio in your spare time” as it is a good summary of a growth strategy.

How have you combined the knowledge from these books into you own strategy??

]]> fc5597c66c4ed92687cc3b78cd97f425 ErikH replied to the topic Another young couple after advice in the forum Help Needed! https://www.propertyinvesting.com/topic/4396198-another-young-couple-after-advice/#post-4603791 Mon, 11 May 2009 05:07:33 +0000 Make sure you check the current value of the studio apartment. And get a proper depreciation report for it, especially considering it’s brand new.

If you transfer the title of apartment, that is sale and you’ll be liable for stamp duty…

If you don’t go and live in the studio, but rent it out and buy something existing as your PPOR you should…[Read more]

]]> 116e727de6bb9d6e95f9a9ae01cb5621 ErikH replied to the topic Young Married Couple after some advice in the forum Help Needed! https://www.propertyinvesting.com/topic/4396196-young-married-couple-after-some-advice/#post-4603788 Mon, 11 May 2009 04:49:58 +0000 David, sounds like you have set yourself up for success, well done.

I think that the next 12-24 months could present very good buying opportunities, but be careful not you extend yourself too much as I foresee a rapid increase in interest rates once we’re out of this mess and inflation catches up. For now, I would concentrate on paying off teh…[Read more]

]]> cd8aa32815a4f4087fa6154abcfbf086 ErikH replied to the topic API magazine? in the forum Heads Up! https://www.propertyinvesting.com/topic/4396191-api-magazine/#post-4603761 Sun, 10 May 2009 06:54:22 +0000 I’ve been reading API for a while now, I do enjoy it, but must say that, the more issues I read the less interesting it becomes. Quite a bit of repetition and not a huge amount of new information. If you’re tight on money I’d stick to using the web and getting some classic property investing books (from the library)…

]]> b643fd76f60972bbc2434b20e7344d4a ErikH replied to the topic Just some reassurance needed in the forum Help Needed! https://www.propertyinvesting.com/topic/4396192-just-some-reassurance-needed/#post-4603774 Sun, 10 May 2009 06:51:43 +0000 KFRE1810, that’s bad news losing all your IPs because of a development going wrong.

Before you go any further I’d suggest you make sure you really understand what happened and how you can protect yourself against it happening again. If you undertake a very risky development, make sure your existing assets / investments are protected e.g. using a…[Read more]

]]> 534b35201d73d749f13a2e7ae93fbb20 ErikH replied to the topic Australian Living overseas looking to invest in Oz in the forum Help Needed! https://www.propertyinvesting.com/topic/4396172-australian-living-overseas-looking-to-invest-in-oz/#post-4603660 Thu, 07 May 2009 03:55:47 +0000 Jolley, as an overseas investor if you want to use a trust structure with a company as trustee you do need to appoint an australian resident as director of the company.

]]> 0feafdfc0ecdc0e1105e4e44089ae460 ErikH replied to the topic Changing the Trustee name in a DT in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4396149-changing-the-trustee-name-in-a-dt/#post-4603481 Wed, 06 May 2009 09:21:30 +0000 QLD land tax thresholds: Land owned by a resident/individual: $600,000 Land owned by a company, trustee or absentee: $350,000  See: http://www.osr.qld.gov.au/land-tax/about-land-tax/index.shtml

]]> 43b1f9baed0f2c2a4d817306baf3106d ErikH replied to the topic Changing the Trustee name in a DT in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4396149-changing-the-trustee-name-in-a-dt/#post-4603478 Wed, 06 May 2009 03:35:06 +0000  God of Money, I agree that the portfolio needs to be a reasonable size to justify the use of trusts, but the costs to set up the trusts and the annual accountant fees are not that high in my view. The proper use of trusts also allows you to avoid paying land tax in QLD as each trust has its own threshold so if you don’t put too many properties i…[Read more]

]]> 8c0b494174deb95f36b35a4f2f359364 ErikH replied to the topic Changing the Trustee name in a DT in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4396149-changing-the-trustee-name-in-a-dt/#post-4603476 Tue, 05 May 2009 16:47:27 +0000 We have some trusts with ourselves as trustees as being an overseas investor I wasn’t able to get a resident director for an australian company and so could not get a company as trustee. I have now found a nominee director who can do this so future trusts will be with a company as trustee. I looked into changing trustees and as Terry says it’s a…[Read more]

]]> 41e8995f1c5cdac1168a6d3891cb43d3 ErikH replied to the topic Foreign income and future IP aussie tax implications in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4396128-foreign-income-and-future-ip-aussie-tax-implications/#post-4603370 Tue, 05 May 2009 16:32:08 +0000 Paul, we’re overseas investors and don’t live in Australia (yet) but do hold a reasonable portfolio of properties across QLD. First properties were bought in our own names but latter ones through discretionary trusts – there are a number of benefits to this but it depends on your situation and what your plans are if this would be worth your while.…[Read more]

]]> 7df8d31f8bf88da76a5e3ac19f79c81a ErikH replied to the topic Property bubble 'set to burst' Australian National University economist says... YOUR THOUGHTS? in the forum General Property https://www.propertyinvesting.com/topic/4396143-property-bubble-set-to-burst-australian-national-university-economist-says-your-thoughts/page/2/#post-4603443 Tue, 05 May 2009 05:25:15 +0000 I have to admit I have not followed the new closely in the last few months due to a relocation, but I still believe the fundamentals of the Australian property market are sound and property will prove to be a good investment into the next decade and beyond. And that’s my focus, wealth creation over the long term so I am not too worried about the…[Read more]

]]> 9bba56381ae6feeb5e430464fa413b81 ErikH replied to the topic Property bust not here yet ... worse to come in the forum General Property https://www.propertyinvesting.com/topic/4385726-property-bust-not-here-yet-worse-to-come/page/29/#post-4548989 Fri, 27 Mar 2009 16:56:56 +0000 wow…I've been away for about 6 weeks or so due to a relocation and am totally surprised by the change in tone of the discussions here. If you were to interpret this as a contrarian, I would suggest that based on the fact that even the property investors are getting bearish we must be close to the bottom which would mean it's time to become…[Read more]

]]> e5ad9910e0905769399f705d313f8df0 ErikH replied to the topic Investing in France? in the forum Overseas Deals https://www.propertyinvesting.com/topic/4394781-investing-in-france/#post-4595890 Thu, 19 Feb 2009 07:36:05 +0000 No need to live in France, real estate can be bought by anybody, at least since 2000 onwards…

]]> 036fc09a0877f08d0aac306cf73d82b5 ErikH replied to the topic Stuck between a rock and a hard place. in the forum Help Needed! https://www.propertyinvesting.com/topic/4395470-stuck-between-a-rock-and-a-hard-place/#post-4599477 Thu, 19 Feb 2009 03:51:43 +0000 Maybe you should revisit your reasons for selling?

]]> 36fbb67dc64e92e4d1337842ffe41875 ErikH replied to the topic Markets change so do countries is it safe ... in the forum Overseas Deals https://www.propertyinvesting.com/topic/4395454-markets-change-so-do-countries-is-it-safe/#post-4599430 Thu, 19 Feb 2009 03:49:23 +0000 Investing overseas is safe ……as long as you know what you're doing and understand the basics, i.e. if you expect to get a higher return by investing overseas (either in capital growth or rental yield) then you must be prepared to take a higher risk. Conduct lots of research both in terms of properties but also regarding the country/market…[Read more]

]]> cd7f1d1b8dfc8a0bdd93e089534f508c ErikH replied to the topic How many trusts????? in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395355-how-many-trusts/#post-4599039 Fri, 13 Feb 2009 13:24:37 +0000 If you invest in QLD another aspect to keep in mind is that each trust has a land tax threshold, so by holding your properties in multiple trusts rather in a single trust or in your own name can you most likely avoid paying land tax (depending on property values of course). I have essentially put units in pairs per trust and only a single house…[Read more]

]]> a32ac2d0b6b6cac9446f09d9b2fc3cdf ErikH replied to the topic Has anyone made any money on the net - Google ads or selling something ? in the forum Creative Investing https://www.propertyinvesting.com/topic/4395340-has-anyone-made-any-money-on-the-net-google-ads-or-selling-something/#post-4598927 Fri, 13 Feb 2009 12:50:02 +0000 There is several ways to play the Google ads game:

(1) you can create a (niche) website, achieve high traffic flows and then put up the google ad using their adsense program – adding the ads is only a few minutes work, the hard bit is creating a lot of traffic. I did it for a while but took it off my site as it was just annoying me and unlikely…[Read more]

]]> d01510417c0488bd89ce1ee20112a661 ErikH replied to the topic Investing after Bankruptcy... Scared as Hell!!! in the forum Help Needed! https://www.propertyinvesting.com/topic/4395351-investing-after-bankruptcy-scared-as-hell/page/2/#post-4599021 Wed, 11 Feb 2009 23:47:50 +0000 Freelance, thanks for pointing that out, I always struggle to remember which sites are the .com.au and which are just .com … http://www.hotspotting.com.auI have bought several of Rerry Ryder's reports over the last couple of years and think that for the $90 you pay you get a lot of value and as an overseas investor who only gets to come to Oz…[Read more]

]]> 47dedee8a1ddbdb38b03a9e6c95e29b8 ErikH replied to the topic Investing after Bankruptcy... Scared as Hell!!! in the forum Ellieguinn, seems your https://www.propertyinvesting.com/topic/4395351-investing-after-bankruptcy-scared-as-hell/page/2/#post-4599019 Wed, 11 Feb 2009 08:59:06 +0000 Ellieguinn, seems your thread got hijacked by the regular doom vs gloom discussion. Some quick suggestions:(1) do not rush into anything, take your time, if you believe in residential property as a wealth creation vehicle then there are always good deals to be had, again take your time.(2) save, save and save and live below your means until you…[Read more]

]]> f071367875e141c1bad9f19923ddccd4 ErikH replied to the topic Investing in France? in the forum Overseas Deals https://www.propertyinvesting.com/topic/4394781-investing-in-france/#post-4595887 Wed, 04 Feb 2009 00:10:03 +0000 So far I've only held investment properties which are on permanent let as I can't yet afford the luxury of a holiday house, well at least not without endangering my longer term plans…. but it hasn't stopped me from researching and keeping an eye on the market, just in case a great deal pops up :)  I think chances of squatters in rural France are p…[Read more]

]]> 34fd7fd1b230f972c0aef5f56852be77 ErikH replied to the topic Investing in France? in the forum Overseas Deals https://www.propertyinvesting.com/topic/4394781-investing-in-france/#post-4595885 Tue, 03 Feb 2009 23:46:22 +0000 Other regions to consider are the Aude and the Ariege which are more inland, but offer beautiful country side, great small villages and easy access to Carcassone famous for its walled city (and an airport serviced by budget airline Ryan Air) and Toulouse which is France's 4th biggest city with an international airport. From this region Barcelona…[Read more]

]]> 7e7f0e461e1ad69a7d75c0b97bda79d9 ErikH replied to the topic experience with cashflowcapital.com.au? in the forum Heads Up! https://www.propertyinvesting.com/topic/4395126-experience-with-cashflowcapital-com-au/#post-4597752 Sun, 01 Feb 2009 23:38:11 +0000 One of the things I have noticed is that the so-called ROI they use can be including all the costs or if the don't know any holding costs it is just a gross return. Guess which one they use more?But still, for an overseas investor I have gained a lot ideas out of this, which I will use in my own research for my next purchase. I will not extend…[Read more]

]]> 08d655226771a3723d0b0af951515a00 ErikH replied to the topic Bill Gates predicts 10 year recession ... in the forum General Property https://www.propertyinvesting.com/topic/4395244-bill-gates-predicts-10-year-recession/#post-4598375 Tue, 27 Jan 2009 07:39:56 +0000 My thoughts:I don't believe in a global 10 year recession, but a prolonged affair in most western economies and as a result emerging markets will suffer too. However, the 21st century will belong to emerging markets, yes decoupling didn't exist yet, but the growing middle classes in Brazil, India, China etc. will eventually start to drive more…[Read more]

]]> 7acfd605b864dbc9dd3ef42b6c86cb2c ErikH replied to the topic Unit Vs House... URGENT HELP NEEDED!! Am considering cancelling the sale. in the forum Help Needed! https://www.propertyinvesting.com/topic/4395219-unit-vs-house-urgent-help-needed-am-considering-cancelling-the-sale/#post-4598192 Tue, 27 Jan 2009 07:13:40 +0000 I think you have a lot of good advice here, this is not the market in which to make a purchase that you're unsure of. Exit whilst you can and then educate yourself and do a lot of research on where and what to buy and how you're going to finance that taking into account some scenariios e.g. interest will go down for now but then back UP.Great to…[Read more]

]]> 3ee96bffb9ff63d2ae232ec61a9486d0 ErikH replied to the topic What can I claim back on with an Investment Property in the forum Legal & Accounting https://www.propertyinvesting.com/topic/4395194-what-can-i-claim-back-on-with-an-investment-property/#post-4598040 Wed, 21 Jan 2009 08:12:27 +0000 You can deduct: – interest on the property loan – costs associated with renting the property e.g. management fees, advertising, maintenance etc. – depreciate the house/unit plus plant/fixtures get a professional to make a depreciation report for you (e.g. DEPPRO or many others, costs about $400)  – reasonable travel costsTalk to your accou…[Read more]

]]> e3e6d404e4c0d78cd9b7374eafb67d69 ErikH replied to the topic Property bust not here yet ... worse to come in the forum General Property https://www.propertyinvesting.com/topic/4385726-property-bust-not-here-yet-worse-to-come/page/23/#post-4548871 Wed, 21 Jan 2009 08:06:41 +0000 It's pretty typical that high end properties suffer the most in situations like these, and they can distort median prices quite easily.I think the lower/medium end of the market in many places incl the GC will hold up well.

]]> 683f227d87923a28d4300c2a11c2c9f2 ErikH replied to the topic Pay off new PPOR or just pay interest! in the forum General Property https://www.propertyinvesting.com/topic/4395201-pay-off-new-ppor-or-just-pay-interest-2/#post-4598106 Wed, 21 Jan 2009 07:45:26 +0000 My view is that the family home is something you want as safe as possible and ideally without any debt, however at the same time most people need to use the equity in their home to get started with investing (in property) and creating wealth. So whether you pay off the loan on your home or use the funds to continue investing would depend on your…[Read more]

]]> ffbe721dba5fb956a5e64e846573f5be ErikH replied to the topic You have $12,000 all up, where and how would you start? in the forum Creative Investing https://www.propertyinvesting.com/topic/4395186-you-have-12000-all-up-where-and-how-would-you-start/#post-4597996 Wed, 21 Jan 2009 07:37:14 +0000 I'm with James, but take your time and make sure property fits with your longer term strategy. If you have the interest/skills look for something where you can add value. With interest rates coming down and rents going up its becoming easier to find cashflow +ve property with decent capital growth prospects.

]]> 7f3f80908a041f89d2d7800797c80d24 ErikH replied to the topic Can people in their late 60s, with around $1m in equity in their house, living on a pension, become financially independendent in the forum Help Needed! https://www.propertyinvesting.com/topic/4395179-can-people-in-their-late-60s-with-around-1m-in-equity-in-their-house-living-on-a-pension-become-financially-independendent/#post-4597948 Wed, 21 Jan 2009 07:23:33 +0000 Woopi, with the equity you have and the income from a pension, I would suggest you think carefully about using real estate as a vehicle to create wealth when you only have a time horizon of 5 years in mind – unless you're an active investor i.e. buy, add value and sell. I'm not giving advise here but what crashy mentioned, i.e. downsizing and…[Read more]

]]> 0ea0c92ef29d72a81c7a271602cfea28 ErikH replied to the topic A question for Steve McKnight - property boom coming? in the forum Opinionated! https://www.propertyinvesting.com/topic/4394651-a-question-for-steve-mcknight-property-boom-coming/#post-4595228 Wed, 21 Jan 2009 07:02:44 +0000 Steve,The near term picture may indeed be gloomy, but doesn't the longer term picture look very solid for Australia?Continued strong population growth (both natural and through immigration), continued decline of household sizes and if anything a shortage in supply would suggest property values are likely to continue along their long term trend.…[Read more]

]]> c9a7ae6f868c5f85a4cfeb241b151ac7 ErikH replied to the topic DID YOU KNOW..... in the forum General Property https://www.propertyinvesting.com/topic/4395140-did-you-know-4/#post-4597790 Fri, 16 Jan 2009 02:21:57 +0000 With "close to the bottom" I was referring to the various share markets around the world, property markets will take longer to sort out and some I would avoid. I do believe that well selected areas in Australia will suffer relatively little from this downturn and we will not see a wholesale 30% or 40% price reduction across the market (even in the…[Read more]

]]> fdc9e9a3f18225570ccaf8065affc61d ErikH replied to the topic buying first property in the forum Help Needed! https://www.propertyinvesting.com/topic/4395159-buying-first-property-2/#post-4597850 Fri, 16 Jan 2009 02:04:40 +0000 About interest, yes the current lower interest will drop the treshold yiled at which a property will become cashflow +ve, how much depends on your LVR. But remember, interest rates will go back up even though they're likely to keep coming down for now.

]]> fd9481a8e0f21b4dad0ec5606183e46c ErikH replied to the topic 3 bed, 2 living OR 4 bed, 1 living?? HELP in the forum Value Adding https://www.propertyinvesting.com/topic/4395163-3-bed-2-living-or-4-bed-1-living-help/#post-4597864 Fri, 16 Jan 2009 01:59:51 +0000 Crunch the numbers… then decide. Sounds to me that the least work would be to use it as a 4 bedroom property, this would allow you to rent to 4 students and most likely give substantially more rent than if you make it a family home? If so that's more yield for less investment. 

]]> 0cb4d0e25cd53d1855577f4cafc124b0 ErikH replied to the topic buying first property in the forum Help Needed! https://www.propertyinvesting.com/topic/4395159-buying-first-property-2/#post-4597848 Fri, 16 Jan 2009 01:51:04 +0000 As far as I remember the 11 second rule says: minimum rent for cashflow positive = (property cost /1000) * 2. This rule basically assumes you want about 10% gross yield on the property to become cashflow positive. So depending on what your holding costs will be you might be ok with less e.g. 8%. You have to do the math as it depends on many things…[Read more]

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