I think 4.75% gross is an attrocious investment yield.

Originally posted by crusher:
professionally analysed data from Residex
Is this not a contradiction in terms? Refer to their ‘analysis’ of house prices vs interest rates if you need a good belly-laugh.

F.[cowboy2]

Funny things these medians (alright, so I know that the ABS/APM figures are ‘average composition weighted median prices’ or what-not).
The median price for 11 properties at $500k each is, unsurprisingly, $500k. If 5 of those properties fall in price to $150k each, the median is still $500k. If demand for properties falls and turnover is 5…[Read more]

… and certainly I will explain. However, I didn’t wish to just jump in with gross generalisations and inaccuracies. First I needed to research the facts to support my theory, now I’m ready to jump in with gross generalisations and inaccuracies! [oneeyed]

Give me a day or two and I’ll complete my explanation. Part one follows.

Cheers, F.[c…[Read more]

I also purchased a 3 bed townhouse in Richmond for $550K , bank value for finance came in at $800K.
Am I alone in hearing a faint tinkling noise that sounds vaguely like warning bells being muffled by the industry VIs?
Without meaning to hijack this thread, I’d be very interested to know the proportion of people here who think this townhouse is…[Read more]

Originally posted by Derek:
The essence of the story is based on the results of a limited number of MORTGAGEE auctions where prices fetched were less than those realised in 2003.
… Mortgagee prices being the most realistic representation of market values HERE AND NOW! These are the only auctions where the property will sell to the highest…[Read more]

CRASH AHOY!!!

Housing crash puts sellers in debt crisis

Jonathan Chancellor Property Editor
August 21, 2006

A THREE-BEDROOM brick-veneer house in St Clair sold for just $260,000 at the weekend – down about 42 per cent from its last sale at $450,000 in 2003 in a further sign of the depressed state of the Sydney property market.

The Herald…[Read more]

What is your definition of ‘crash’?

No problem Jack, I appreciate your good humour in the face of my frustration.
I’d suggest you go looking for a copy of ‘The Land Boomers’, Melbourne University Press (1966), by M Cannon. It’s certainly eye-opening. I’ll attach some examples for any readers who may be unable to locate a copy.

Victorian average rateable value 1891 = 500 pounds.
-…[Read more]

PS – while you’re researching, don’t forget to google the “Melbourne land boom” as it was once commonly known, but now largely forgotten. As that bubble burst, land values fell by 20%+ in a year, and in many areas by 50% in a decade. Just thought I’d point that out to you, since you’re interested in the Xtra long term view…[wink]

Originally posted by joshadelsa:
With properties doubling every 7-10 years , It is fact and if you look back over the last 200 years in australia it is a continuing trend that keeps repeating. Research yourself and you’ll find out its true.[angry2]
False.
Wrong.
Misleading.
Please direct me to any research showing 200 years of property ‘doubling…[Read more]

Sarah, I’d say pay off your loan.

I’d dispute the Residex idea (I work with statistics and I like to read there ‘analysis’ whenever I need a good laugh) as well as the suggestion that “Future growth potential of established sbrurbs can be pretty accurately determined by examining the average annual growth over the previous decade.”

I estimate…[Read more]

Sarah, you need to identify the difference between someone ‘sharing knowledge” and someone ‘sharing BS’. Here is your first challenge – which do the following fall into:

yeah definately buy ASAP
a) Knowledge?
b) BS?

I heard someone say once that you will never save your way to riches.
a) Knowledge?
b) BS?

The only way to do is leverage you…[Read more]

… and those responsible are beginning a conditioning process. Maybe, just maybe they will be able to convince the sheeple that the blame lies with oil prices/global inflation/skills shortage… but the fact is that we have let them convince us that accumulating a massive mountain of household and foreign debt secured against unproductive assets…[Read more]

Originally posted by simple:
Does any one have any ideas on how the interest rate will move in next 12-24 months?
Yup. OCR will hit 7.5% in around 18-24 months (retail around 9.5%). It will again be around that level again in about 4-5 years. In between there will be at least one sharp upward movement, then downward movement. And a bit of…[Read more]

When the seemingly endless credit runs dry. The living standards of the spendthrifts who currently live far more affluently than me via accumulation of debt will face payment day. Meanwhile, I’ll go on living within my means… which means I’m perhaps already rich. It’s just that it doesn’t feel like it when everybody else seems to spend so much…[Read more]

Originally posted by 888Abundance:
Sometimes the CG issue can be less important to an entry level investor. Let’s look at this slightly differently, and think about CG being a phenomenon of the times.
[blink]Perhaps I misunderstand you.
Taking CG out of the euation, if TK were looking for cashflow surely there are many options with much higher…[Read more]

Hi Jomari59,
I’ve just had a quick squizz at the Foundation Economic Clock of Doom (FEC’D) and it appears that we’re currently passing at 1 minute to midnight, with the second hand just starting to tick through the last 60 seconds to and event that the FEC’D describes as “The Greater Depression”.
This indicates that the true state of the economic…[Read more]

Originally posted by grant7:
Sounds like a great deal to me, id like to sign for 3 or 4, pity they didnt leave any clues on how to apply??
How exactly is it a great deal?
By the end of the 5th year, you’ll be paying (on their $400k example) an extra $500 per month extra as compared to fixing the entire $400k at 6.99% (which is easily doable NOW).…[Read more]

Hi Xenia,
Where on earth do you get people stupid enough to take a ‘deal’ on those terms? Do you advertise or do they come to you? Is there a list somewhere? Can I have a copy? I’ve got a whole bunch of ‘Magic Cheese Powder’ Link I’m having trouble shifting and these sound like the sort of people who would be interested…
F.[cowboy2]