Falling prices, reduced demand, increased interest rates… any rational investor with a hint of foresight (and some liquid reserves) would see these as positive signs. The panic you see in the market place is surely restricted to over-stretched CG speculators and long-term investors who have maxed out their LVR at the wrong time of the market…[Read more]

Originally posted by JackHu:
You should try to establish a good credit rating so you can borrow large amounts of money quickly on an unsecured basis.
Is this some kind of joke or the result of a bad e-trip?

Hi Brady5,
Interesting thought, but how do you find out the ‘wholesale price’ for a particular property?
Cheers, F.[cowboy2]

I guess you really want that dishwasher, huh?[biggrin]

Hi SiS,
That demand you speak of, do you have a feel for whether it is driven by property speculators or long term residents?
Just curious,
F.[cowboy2]

how do they get their money back from the $300000 car that you paid nothing for and they loaned you the cost of car + rego + insurance etc
Hi Kerwyn, I think you’ve accidentally added an extra zero in there. I doubt there is a financial organisation who would lend Three Hundred Thousand dollars with nought down![biggrin]

I do believe that the…[Read more]

Originally posted by woodsman:
F, I think you overlook the associated industries that have grown around property related investment. Yes, most are service related industries, however, this part of the economy represents a significant portion of economic activity.No, I didn’t ignore this;
Property investment can have a short term positive growth…[Read more]

Originally posted by Dazzling:
I believe ‘property’ is extremely productive. Many examples of this can be shown in every city;[blush2]Err, yes. Sorry, I was strictly speaking of residential property.

Looking at the long term graphs for property over the past 100 yrs, I have no doubt ‘property’ will continue to rise.I suggest you overlay…[Read more]

With due respect Woodsman, I didn’t intend to cheerlead, just point out an alternative view, and that there is pressure for reform of PI tax concessions. Whether anything comes of it or not, property investors need to remember that some 83% (?) of Australians don’t own more than one property, and some of them vote too.
Why is it property is…[Read more]

Originally posted by woodsman:
Ahhh foundation, you are nothing if not consistent.Why thank you~![biggrin]

As long as people continue to make assertions such as In 10 years time it is going to more than likely doubled in price I guess I’ll just keep playing the record…[biggrin]

On the other hand if only I could get my membership to…[Read more]

Hi ASB,
I would take these:
Properties have been falling since 1990, depsite it being cheaper to pay a mortgage than to rent.
as indicators that a small(ish) speculation in Japan just might pay off (I don’t know whether property near the ski field has followed these trends though). If you can work around the problems Terry has mentioned and find…[Read more]

Originally posted by christobell:
If they were to remove the Tax breaks ie N.G. there would be a lot of Mum and Dad investors out there hurting badly..A lot of these people have multiple properties relying heavily of the tax cuts..what will happen to there properties? I guess they will not be able to pay the mortgages.

This:
The RBA has been…[Read more]

1) Houses are much more expensive than cars…
2) Property is not a risk-free investment.

Originally posted by kerwyn:
This is a thing that is not going to drop in price the minute you open the front door?
It can drop in price before you even get to the front door! Talk to ‘investors’ who bought options for apartments off the plan in Melbourne &…[Read more]

I disagree.

A few reasons:
+ House prices at record highs compared to wages & rent
+ Household debt at record highs
+ Consumer confidence plummeting with every rate rise
+ GDP at zero & set to stagnate
+ Unemployment set to rise
+ Inflationary pressures growing
+ Interest rates being forced up by ^ and US hikes
+ all but the most VI media…[Read more]

Similarly to GeoffB, my beach shack was revalued last month at around 20% less than late last year. However I agree with the valuation – other houses in the area still at ’03 prices aren’t moving (whereas in ’03 anything and everything sold as soon as it was on), so if I was to put mine on the market, I’d expect to need a lower price to move it.…[Read more]

Originally posted by Gorden:
I used to get info from a lawyer who worked for a major bank and would know of repossessions…this was legal but not exactly legitimate..
Depending on the actual status of the repo, this could constitute a breach of the federal Privacy Act and therefore the law…

Hi JackHu,
I’m not having a go at you, but would you mind substantiating your assertions with some kind of fact basis or analysis?
I strongly disagree with your points 1, 2, 3 & 4, however, I think the rest of your post was accurate and helpful.
Cheers, F[cowboy2]

Originally posted by Mobile Mortgage:
Hi Foundation,
Providing your loans/finance is structured correctly, it is possible to avoid cross colaterisation and use equity in a PPR for the purpose of investment and not have the PPR held as security over the investment, Cheers.

Yes, I’m aware of this, however, many investors still use their PPOR as…[Read more]

I think the RE market was driven too far by people not understanding this concept.
I agree.
We have lived in places that we could never have afforded to own
I agree. (Try a 1.5m property for $127 pw![biggrin])
You get a lot more bang for your buck renting at the moment
I agree.

At some point buying will again return to its historic norm position…[Read more]

I would never, ever use my PPOR as security on investments. Investments can lead to luxury, but warmth & shelter are two of life’s most basic needs. Why risk it? Learn to save instead.
Cheers, F.[cowboy2]