Originally posted by lyndon_g:
Hi goodbyekitty,

you have signed a contract with the builder, and they have to hold that price. they can only price rise you if
a)
b)
c)OR as per earlier posts, if the contract contains prime costing/provisional sums. It’s probably not helpful to post suggestions that the builder has done the wrong thing when for…[Read more]

Originally posted by foxyac:
I am all out of money now as I have this and another one that are negative geared and draining all my money and am at 95% LVR
You should perhaps rethink your sales pitch… That there doesn’t really inspire confidence in a potential JV partner. I’ll pass.
Good luck,
F.[cowboy2]

Have a look over your building contract – check for ‘prime costings’ next to items. Then check the variation allowance for prime costed items. From memory the standard here in VIC is +-30%. Meaning, if you sign a contract with $15,000 worth of prime costing you can be stuck with a $5,000 bill at the end, no questions or approvals required. I hope…[Read more]

Bear in mind that this is simply my personal opinion based on my own limited research and resources and should not be considered specific financial advice blah-blah so sue me.
I think interest rates are going to rise much faster and much further than even the most extreme of mainstream commentators are currently predicting.
That’s all. If I had…[Read more]

And so, the credit crunch begins.
Perhaps some of those who were recently boasting of having “locked in equity” using LOCs should be checking their fine-print…
F.[cowboy2]

How does No-doc help? Sure the ATO can’t match income tax returns to stated income (for loan app), but they can still work out whether the declared income is sufficient to service the loan.

Yes, but….. Belair?

Originally posted by Cabo Wabo:
U say there are 600,000 dwellings turned over each year, with the average mortgage being 215,000. Ur $129 billion housing debt growth number comes from 600000 x 215000. This number is actually the total value of new mortgages issued… not housing debt growth.
Ah, thanks and well spotted Cabo. That explains why…[Read more]

Originally posted by Dazzling:
[navy]OK, so what exactly is the aim ??
Surely this isn’t a highly technical “I told you so” session.

No. And a little bit of yes. I would have kept looking at this until I worked it out to my own satisfaction. I posted it here to a) share information, b) as an opportunity to accept criticism and corrections and c)…[Read more]

Originally posted by chrisconuts:
Theres a number of worthwhile considerations which haven’t been made which would affect the outcome of the scenarios. Unfortunately, a lot of them are unpredictable and hard to enumerate.
Too true, Mr Conuts. That is why I deliberately simplified the numbers, and assumed ‘best case’ scenarios for wage growth,…[Read more]

Dazzling, I will get back to your questions shortly, promise.

Flash, I bought a few dozen bullion-grade fine silver one ounce coins over 2004 & 2005. Also some Unc Australian Mint silver coins ranging from an ounce up to a couple of 10oz’ers. All bought when silver spot was less than US$7. None for more than AU$10.50. Currently up around 66%.

I…[Read more]

Excellent! I was thinking you’d be more of a bottle-of-Grange kind of fellow (although I don’t believe it generally lives up to the promise of the pricetag – perhaps I’m too impatient?), but I support your charitable suggestion. I hereby solemnly swear to donate $2500 to each of 2 charities if APM/ABS figures show the median house price in…[Read more]

A fair question Dazzling. Perhaps I should have given more thought to that question before I posted, but that was never my aim. You see, I’m the kind of kid who would rather pull apart the toy and find out how it works… then once satisfied, leave it in pieces. I will address your question later, but for now, I’d just like to thank you and the…[Read more]

Mr Yardney, may I refer you to my recent post:
https://www.propertyinvesting.com/forum/topic/24432.html

Before you read it, perhaps a gentlemanly wager is in order… Melbourne median house price 2013 (ten years from peak at $368,000). Above $736k*, you win, below $736k I win, as measured by APM/RBA series. Name your poison!

[biggrin]

Cheers,…[Read more]

Originally posted by alexlee:
On the contrary, have you ever done a refinancing on one loan out of many?
Yes.
The bank will revalue the property you are refinancing, but they never check the value of the exisitng properties: they assume that LVR is ok and look more a the income / interest payment side of things.
I think you’ll find they require…[Read more]

I’ve taken a position. I’ve decided not to sell my surplus property. Thus, I have a vested interest in further house price appreciation. I simply posted a contrasting view… one that I would think is important for NZ investors to at least acknowledge, given that the governor is the one who is essentially in control of future house prices, and…[Read more]

Originally posted by alexlee:
high yields because prices go down and rents, if population remains the same, don’t go down) during a bust.
Alex

Reserve bank of Australia:
In the early 1990s, high vacancy rates were associated with a decline in rents.
Source: http://www.rba.gov.au/PublicationsAndResearch/Bulletin/bu_jul02/bu_0702_1.pdf
Graph 4 (p.…[Read more]

So who do you believe; Punch and Judy or the puppet master?

Price of houses will drop, says Reserve Bank head

Tuesday June 27, 2006
By Matthew Brockett

Reserve Bank Governor Alan Bollard expects house prices to start falling by the end of the year as higher interest rates begin to bite.

“We are seeing the rate of increase slowing a lot,” Dr…[Read more]

Originally posted by alexlee:
What will I do when the bubble bursts? BUY! Experienced investors would be prepared for the bursting of the bubble anyway with LOCs locked in near the top of the market and cash reserves.But surely ‘locking in’ values near the top of the market won’t be much use if the value of current holdings falls, will it? Lenders…[Read more]

I have just 2 houses, and neither of them generate any income whatsoever. Net of major bills and investing costs I have just $350 per fortnight left of my wage to spend on food, petrol, clothes, toys holidays and gifts etc.

Am I successful?

I have no good debt. Is this a sign that I’ll never ‘make it’?

I drive a modest car, dress nicely but…[Read more]