our current IP (yes, it used to be my PPOR) IS actually for sale. Won’t pay any CGT (if it sells soon), in fact will make a loss, because it was at it’s peak value at the time I started renting it out. So that’s good, and even better that I can use this capital loss to offset any future capital gain
Err, wha..?
You’re going to claim a capital loss…[Read more]

My simple advice is that in uncertain times, and particularly when starting out with any kind of investing it is best to be cautious – don’t over commit yourself.
Wit property, a PPOR can provide fantastic tax-free gains, but it can also cost a lot to look after and there is no guarantee of capital appreciation. If you buy, aim for something you…[Read more]

Originally posted by gafama:
Remembering that property doubles every ten or so years (it has for the last 100!) then if you replaced the $1.3M one with 2 @ $400K and $600K, in ten years you’ll have assets of $2M rather than assets of $2.6M (that’s another $600K disadvantage.)
You’re obviously new around here…
Try a forum search on…[Read more]

Originally posted by Don and Liz:
Hi Foundation,

You lost me a bit there. How will the profits become illusory!

Most of the real estate “profit” from the last 5 years or so exists only as paper / equity wealth. Unless the house/s are sold, the “profit” can just evaporate (ie, it’s an illusion). Unfortunately for many, debt is much harder to…[Read more]

Do the new Peugots have such engines? The fuel consumption on their mid size diesels are incredible. If they can run on bio-diesel I might be interested.
Any idea?
F.[cowboy2]

More of a certainty than a chance. Better off sticking to Terrigal and running a ‘ring fence’ operation on a forced seller…[fear]

Regards, F.[cowboy2]

… A $60k drop from $208k is only 29%.
That would take the median Ipswich house to $148k, which admittedly sounds cheap, but only comparatively.
Rent would still need to be well above $200/w to make that an attractive cf+ deal, and I believe there are plenty of 3 bed houses renting for $200 and less.

Regarding house price perception – I was…[Read more]

Originally posted by Dazzling:
Petrol at the bowser and slightly higher costs on everything else to account for transportation charges is extremely minor in the grand scheme of things for our family.
Agreed. I won’t start complaining until prices get above $2.50/l. I think reducing our reliance on oil would be a good idea, and higher costs at the…[Read more]

Originally posted by Wylie:
I think you can have lack of stock but a slow market. Unless I had to sell right now, I’d be holding off, hence the lack of stock.
Yes, but I dispute that being the ‘problem’ at the moment. It’s not a lack of stock, it’s a lack of sales. Average time on the market is up around 50% in east coast capitals, indicating an…[Read more]

I’ve been told that by smarter people than me that the US$ is not going to correct anytime soon. From my reading their massive deficit actually puts downward pressure on the dollar.
Yes. And no. The US Federal Reserve is prepared to aggressively defend the value of its dollar. It has been doing so with a series of interest rate hikes since mid…[Read more]

Leaving aside the apparent contradiction Although the market has slown downThere seems to be alack of property on the market.[blink]…

I see no signs of the types of falls you are refering to.What? Nowhere or just Ipswitch in particular? According to the REIV, Melbourne median house prices have fallen $18,000 in just 3 months!the REIV’s most…[Read more]

I like the logic of your post ez-rent. I’m not an economist either, but I have a few thoughts.
From memory, I think a 10% increase in the cost of petrol translates roughly to a 0.5% increase in CPI. This is approximately what we look to be facing in the short term ($1.05/l -> $1.20/l).
Clearly this will place pressure on interest rates.
However,…[Read more]

Originally posted by westan:
it makes you realize how hard it will be for our younger generation (under 25’s) to partake in part of this nations wealth, (unless they inherit it).
On the other hand, the over 25s (and baby boomers in particular) may discover that the fortunes they have reaped from property investing are largely illusory, the under…[Read more]

Sorry Robyn, I was suggesting that a licensed financial advisor might be just the ticket. You need a financial plan, (as we all do), but this is particularly important if you intend to retire with $400k of debt outstanding… or $100k for that matter.

Cheers,F.[cowboy2]

Why on earth would anyone buy a second home in such a situation? You have 3 years of income left in which to pay off Four Hundred Thousand Dollars of DEBT!!!… or perhaps you have a massive lump sum owing?.. in which case would you really be better paying for a house than earning income in the form of interest? Which one is going to give the…[Read more]

Once the will is read and this all is finally confirmed, I’m going to ask a judge, etc. to grant that minimum 25% that was due if dad had died intestate.

Then, if legal advice believes we have a strong chance of success – I’ll also go after the two witnesses on the will (the relatives that arranged for the solicitor) for fraud – plus the…[Read more]

Originally posted by brahms:
it was extended. no change.No change… except it is reduced to $3,000 from Jan 1 2006.
Link Here
F.[cowboy2]

GOOD IDEA TERRYANNG.
ANOTHER WEALTH CREATION OPTION FOLLOWS:

I AM MARIAM ABACHA, WIDOW OF THE LATE NIGERIAN HEAD OF STATE, GEN. SANI ABACHA. AFTER HE DEATH OF MY HUSBAND WHO DIED MYSTERIOUSLY AS A RESULT OF CARDIAC ARREST, I WAS INFORMED BY OUR LAWYER, BELLO GAMBARI THAT, MY HUSBAND WHO AT THAT TIME WAS THE PRESIDENT OF NIGERIA, CALLED HIM AND…[Read more]

Thanks for the link g7. A fascinating read. I might have to get a copy of Shiller’s new book. I thought it was just an update to his Irrational Exhuberance (2000), but it sounds like a fair bit of real estate research has gone into the new version.

HotRod, I hope you’re not knocking tulips or DotCom stocks? Many people became fabulously rich by…[Read more]

[specool]Well done Ausprop. I find BRW writers are usually quite thorough. I’ll digest the article before I go calling anyone a moron.
Cheers, F.[cowboy2]