Originally posted by mancityfan:
Utilising P&I loans for 30 years simply means that the tenants will eventually pay off ALL your debt on the property. Nope, they won’t. In the scenario I offered puduston above, the tenants would only pay some of the loan off. The ‘investor’ would have to contribute around $297,000 over 30 years, in addition to the…[Read more]

Originally posted by Pudestcon:
This really means an extra $1200 per year or $23 per week. If you had to take a LOC to cover this short fall then the actual cash from your pocket (to pay the interest only) every week is only $1.62 assuming 7% interest on the LOC.
I reckon if I was in such a situation $1.62 per week out of my pocket is a small…[Read more]

Originally posted by hb:

your right Terry
I agree it is ridiculous with the stamp duty issues. Makes you want to abondon property and invest in shares!

i have and loving it

harrySo you’re comfortable with this week’s developments in Aus & international sharemarkets then Harry?[blink][biggrin]
I’d be surprised if the movements I foresee between…[Read more]

Originally posted by Kiwi-Fulla:
Good Point here … I saw this on ABC last week nad felt sick when I learned that over 30,000 Australian citizens lost over 1.35 million and cannot claim a cent back!I have read the total investor losses are expected to be in the range of $200 to $300 million, although Neil Jenman’s website suggests it may be…[Read more]

Originally posted by Pudestcon:
With the tax break announced in the 2006 budget I will simple use that cash in place of the reduced tax deduction.This seems to make sense. Those who are currently negatively geared won’t find their situation much changed. However, those considering purchasing a negatively geared property will find it less…[Read more]

As Terry said, the payments will usually begin at the end of the first payment period (f’night/week/month). However, the payments are calculated on the debt outstanding, and if you are building, the bank will usually only pay the loan out in stages. In this case, you will not be paying for the full debt until completion and final payment – your…[Read more]

Oh there’s still time, gmh. If somebody had bought a random house in suburban Sydney for $550k in 2002, sure it might be worth $490k now, but who’s to say it won’t be worth $1.1m in 2009? Assuming no growth this year, it will only need to see 33% gains per annum in 2007,8 & 9. Oh, I see your point. It’s just not going to happen.
I guess there’ll…[Read more]

With regard to brushmarks, use oil-based paint over a carefully prepared base. Craftwood doors will need to be sanded thoroughly after priming as they tend to burr. I’d recommend semi-gloss or shinier for the top-coat – it’ll stay cleaner and last longer. In my experience, higher gloss enamel paints tend not to hold brush-marks, they ‘slump’ out…[Read more]

Originally posted by Rikky:
The government droped tax benifits of negative gearing for 2 years in the 80s it was the worst thing they done people had nowere to live and the government had to house people it cost them a fortune rents went through the roof so they went back to tax benifits for negativly geared propertys
I’ve heard this story many…[Read more]

I would suggest faking your own death. Either that or seek professional legal and/or accounting advice As Soon As Possible! This is not a situation that should be handled by anonymous strangers on the internet.

Best wishes, F.[cowboy2]

I have just the thing:…I feel awkward asking you for money. I feel that you have already given me so much would you above, and your emotional support. Through the years, many of you have helped me out…
Full text here

Just remember to replace the words “2004 Dodge Grand Caravan” with “4 Bedroom McMansion in Dullard St” and Bob’s your uncle……[Read more]

And to tie the two previous posts (Iran & SBS) together:IRANIAN OIL BOURSE.
9.5.2006 12:43:22

Since 1973 oil has traded in US Dollars, and because the world needs more and more oil, at ever- increasing prices, the global demand for dollars has also increased.

So what would happen if an oil-rich country attempted to trade, and price its oil in…[Read more]

Originally posted by kum yin lau:
if you build it in the country. If you can buy a block of land for $20000, you will have to spend $250000 to build a house, because building a road will cost $100000
Rubbish! I just last year finished building one (2-bedroom) house on 600m^2, a stone’s throw (literally) from the beach for less than $140,000,…[Read more]

Originally posted by Stuart Milne:
I believe if the Govt. Cancelled Neg Gearing Benefits, they would send most mum and dad investors to the wall. What if they removed it for future purchases but left it in place for existing investments? As in, non-retrospective changes?

They would also increase the costs of Private Housing astronomically. How…[Read more]

Originally posted by PaulDobson:
I’d hate to see the results if the government stopped negative gearing benefits for residential property. The bill for “public housing” would explode. Why? And would it “explode” by more than an additional 3.5 billion dollars per year?
F.[cowboy2]

Originally posted by flatout:
IMHO an interest rate rise will invariably cause rents to rise if for no other reason than investors will look to pass it on to their tennants.Some may try, but many property investors have little or no debt attached to their properties. I think market forces of supply and demand for rental properties are more…[Read more]

Philip Harvey – It’s a bit rude to go back and edit your previous posts after I’ve responded. I see I’ll have to quote you in full from now. Slow day at the REA office?[wink2]

Originally posted by Philip Harvey:
Japan at the height of its boom was incredibly overvalued in all sectors.Sure, with hindsight this is obvious… Looking back on this boom period may provide a little perspective also.

The projections are for the Australian population to reach about 23m in 2024. So at our current ‘slumping’ rate of building…[Read more]

Originally posted by jneale:
There is a large net migration into WA causing the housing shortage and the increases in housing prices. Perhaps a 0.25% increase in interest rates may reduce what people can borrow but they will still need houses. I think some of these realestate announcements are deliberate attemps by agents to manipulate markets…[Read more]

Originally posted by Dave L:
Looking at things a bit closer
“If you are a company, trust or individual carrying on a business, then you will be able to claim the interest as a tax deduction because tax is a necessary part of conducting business and is viewed as a business expense.”

Brilliant Star said he saved his tax which implied to me he was…[Read more]