Sorry … dunno what you’re on about there.err.. [blush2]It was a tongue in cheek reference to this gem:
Originally posted by 1Winner:
Sydney market is busted, people are going broke left right and centre, banks are cutting their losses and relocating in China and Pakistan, the current recession makes the thirties look like a picnic I am diggin…[Read more]

Your first step should have been a phonecall explaining that you were about to issue a ‘notice to fence’ (I’m assuming you have these in SA?), and asking them ‘not to take it personally, it’s just a formality for my bank / business partner’ etc. Next step get quote, attach to notice and post via registered mail. It works in Victoria.
Cheers, F.[cowboy2]

… I don’t know?! I guess it’s all about the spin. See, I started off all positive: Positive forecast for house buying bargain and ended positively: Still, it’s very good news for serious investors with portfolio LVRs of 60% or less (although a tightening of lending criteria may well make even lower LVRs a necessity).Despite my being absolutely…[Read more]

I would like to buy some shares but at their current prices they are just too expensive.There are plenty of shares returning around 7% pa in dividends at the moment. Plus you have much higher liquidity than in real estate. However, as I’m still expecting the XAO to touch 3700 later in the year, now is not the time for me to be trading with…[Read more]

In 20 years time, anyone who buys now will probably think it was the right time.
Unless house prices are 30+% overvalued in 20 years time, I don’t believe the average house purchased now will appreciate faster than inflation over the next 2 decades. However, given that many people don’t understand the difference between nominal and real values, I…[Read more]

what do I need to look out for to signal when to buy and when not to buy?
Buy residential real estate when you can afford to and when the return on your investment will be greater than the return on other investment options. The 2 measures of return on investment are yield and capital growth. Both are important.
Do not buy residential real estate…[Read more]

Originally posted by nkibel:
With a cooling housing market and a slowing economy why would interest rates rise.As long as the US Fed maintains it’s tightening bias, there will be pressure on Australia to also raise rates. The alternative is price inflation (particularly in oil and anything (everything?) that requires transport) as the AUD loses…[Read more]

1. When $2.0m of capital compounds at 10% and an annual drawdown of $100k compounds at 7%, at what year is the “turning point”? (ie when your capital starts reducing)Jeff, surely you don’t think this is a normal situation (ie sustainable) do you?
I just checked my stats for median Melbourne house price (REIV) versus standard variable rate home…[Read more]

I think it’s a good idea to reduce the interest for my PPOR, and use the equity from my PPOR.Yes, if the value of your PPOR increases you could consider ‘accessing some equity’ to buy an IP, but if house prices remain flat or fall, you’re probably better off simply repaying that PPOR loan.
Cheers, F.[cowboy2]

Use that cash to reduce the non-deductible interest payments on your PPOR. Principle payment or offset account is equally effective. You’d be hard pressed to find a better return from residential property investing at this point in time (IMHO).
Cheers, F.[cowboy2]

A different take from news.com.au:
US House Bubble Set to Burst
“I have to tell you that some of these stories we’re hearing about residential speculation make me uncomfortable … real estate is ultimately driven by fundamental factors such as general economic growth, demographics, and household income.”

Swonk said some of the factors…[Read more]

My financial situation is excellent (plenty of cash).I’m very interested in investing in property and keen to learn how to create wealth for my life and family.Would you be satisfied with a an investment for that cash which returns a guaranteed 7% or better pa compounding daily?

I have a graph… going back to 1860 showing how property prices have grown and grown and grown and grown….and I have a graph from Commsec showing that from 1900 to the mid 1980s house prices fluctuated around a trend of around 4 times household income. A graph showing only $ with no real-world reference is next to meaningless. Also worth noting…[Read more]

Originally posted by kay henry:
I guess if there is less supply, prices could actually go up?
I don’t think there is an issue with supply. Try monitoring a suburb in Sydney (or just about anywhere else in the country) on Realestate.com. Count the properties for sale. You’ll find that numbers of listed properties are on the increase. It’s simply…[Read more]

Sorry, don’t wish to buy into the current discussion – can I back up a bit?
Originally posted by nkibel:
If you buy an investment property in main city in Australia and you are looking at a 5-10 year hold you wont lose. Do you have any support for this claim? Plenty of people in the past have lost money in real estate over 5 years. Plenty have…[Read more]

Originally posted by surreyhughes19905:
6.25% is a good rental returnNo. It isn’t. 11% is a good rental return.
Cheers, F.[cowboy2]

Of course Westpac have a very good historical basis for their caution…
Cheers, F.[cowboy]

Ok, that’s a more sensible take on things. Check out http://www.morningstar.com.au for managed fund ratings.

Cheers, F.[cowboy2]

I am wanting to put $10k into a managed fund that can ideally pay for, and theoretically “cancel” out, the $30k’s monthly repayment as well as hopefully make some income that can be re-invested or go into the business.

…so – you’re looking for a managed fund that will consistently return over 34%* annually over a long term. This is not…[Read more]

Interesting point dmichie – why are the RBA concerned about inflation at all? Why specifically do they focus on consumer prices? Is not monetary inflation in any form equally as destabilising?
I have noticed regular mention of concern over house prices in statements from the Reserve Bank, yet the market has largely ignored their concern. In the…[Read more]