Thanks![suave2]
F.[cowboy2]

Munjy,
If you send your email address via PM, I’ll forward you my xls. It is rather crude, but will hopefully become more useful over time.
Are you buying/selling/staying the hell away?
None of the above! I’m an investor, not simply a property investor, and at the moment I’m finding great opportunities elsewhere. I’m monitoring the real estate…[Read more]

What? >100 views and nobody has a comment? After hearing “real estate cycles are typically seven to ten years”, “we’ve reached the low point in the current cycle”, “it may look like a bad investment NOW, but time heals all wounds – in ten years you’ll be quids ahead” etc so frequently of late, surely somebody is prepared to look for a hole in my…[Read more]

Would I turn up to work every day for 18 months knowing I wouldn’t get paid??
[blink]
Well there’s one for the book! Never been asked that one before… no, I guess I wouldn’t. I’d go work on a remote farm in return for a couple of small meters in which to grow potatoes.
Potato is the fruit of the earth. You can barbecue it, boil it, broil it,…[Read more]

…That’s… much better! 65% LVR is just about conservative![guilty]

F.[cowboy2]

Originally posted by lifeX:
I’m geared to the eyeballs and my balls are right on the line.

89%
My SANF is fine , and if I lose all, heck I’ll just start again.
Negative equity.
Imagine the situation. For some reason or another, you need to sell one or all of your properties. Because house prices have fallen, you have 2 choices:
a) sell at less…[Read more]

if it did happen then no amount of planing on any ones part would save them.

Kerwyn, if somebody in the USSR had been quietly trading some of their paper money for gold during the 80s, secreting it under the pear tree in their back-yard, would they have been better off or worse off than average by the mid 90s?

F.[cowboy2]

Sorry John but I read your story as the first page of a 10 page cautionary tale.

One of my reasons is that you seem oblivious to the fact that you have turned over $200k of realiseable equity into $110k in 5 short years. If we subtract selling costs it’s probably more like $190k vs $20k. This has been the biggest asset price boom in many decades…[Read more]

Sorry to disagree here Michael, but here are some facts. In inflation adjusted 2005 Australian dollars, the peak of the last/current cycle during 2004 was much further from trend than 1989, and the reason the slump has appeared much less severe is because we are only just at the beginning of the correction. House prices around the country are…[Read more]

Have you got similar data for Sydney?
It depends which you’re after – herbal V or cialis?
F.[cowboy2]

… as in the real estate market.
I’ve been pretty consistantly making between 20 – 70% pa returns on my share investments over the last 2 years.
Should I:
a) maximise my leverage into the sharemarket using my current strategies?
b) realise that the last 2 years have been pretty exceptional for shares and plan in accordance, ie using hedging…[Read more]

Originally posted by jhopper:
at some point the market will flatten and then rise again.Yup!

All I am simply saying is that the market will rebound with the critical element being when.I think the critical element will be why rather than when. Two factors come to mind – Yield (think Rental Reality/ CF+ etc) and sentiment. The return to positive…[Read more]

Originally posted by grossrealisation:
If the demand is so high,
The supply must be very low.
If the supply is low.
The rents must go up.

So I have 2 questions:
1) Why is the current increased demand driving down the price? Refer original article for detail.
2) Why did the demand that lead to 100+% capital gains in a few short years not lead to a…[Read more]

I am curious if the investors that are cashed up are using this current period as a prime opportunity to grab some bargains?
What possible motivation would such an investor have at this point? Certainly not rental yield at ~3.3(?)%, and while prices are falling at nominal rate approaching $60,000 per annum, would they not wait until prices stopped…[Read more]

Hi carl_vic,

PM me your email addy and I’ll try to find some time to send you my excel data for Melbourne… in between signing you up for herbal viagra & cialis spam…[biggrin]

Just kidding. I have the data.

F.[cowboy2]

…of course with the appropriate trailing sell / rising stop-loss in place that outlay of $7.20 per share would have triggered a sell at around $9.00… a capital gain of 25%, plus dividends of around 6%pa.

Just playing devil’s advocate here.

Stephen, learning how to effectively manage shares is absolutely in your best interest. A great start…[Read more]

…Well, yes. The problem is that the current situation of wage inflation growing faster than GDP is not sustainable for long – at least not with falling or static unemployment levels.

Out of interest, has anybody here had a 6.5% wage rise this year? Mine is only up around 5%…[jealous]

F.[cowboy2]

Page 38 of the RBA’s recent statement on monetary policy has graphs comparing the median gross rental yield for each capital city over the last 15 years. This can be used with median house price information from your local rei* website
(eg http://www.reiv.com.au, http://www.reiq.com.au, http://www.reiwa.com.au) to get the per week average rental on a median priced 3…[Read more]

… It would seem that Perth’s 10-year index has caught up with the other capitals – all are between 240 to 250% of 1995 median price. Rental yield is higher than Sydney & Melbourne. Some detail, a bit of analysis and some graphs are available from the RBA’s statement of monetary policy pages 35-40. This will probably be the best source of…[Read more]

Excellent work Techno! Nice to be able to read the latest news all in one spot. Keep it up.

Regards, F.[cowboy2]