True. Apples are apples, oranges are oranges. Apples at $100 per kg would be overpriced. On the other hand oranges at $100 per kg would be overpriced.
Cheers, F.[cowboy2]

Originally posted by astraltao:
when do I know is the right time to step in and buy?
When the numbers add up – when renting is not cheaper than buying. Incidentally that’s also a good time to be buying RE investments, as defined by the 11 Second Rule ™, Rental Reality ™, CF+ etc.
Cheers, F.[cowboy2]

Originally posted by AUSPROP:
I can’t see why you “fail to see how falling demand for investment properties… would push up rent”.
I can only imagine the falling demand would have the opposite effect to what the rising demand had… ie. very little whatsoever!

What did rent do upon the abolition of negative gearing in the late 80’s out of…[Read more]

On the supply/demand issue,
Oil prices are factored into CPI, and can therefore influence wages. However, the price of oil is set by the market – higher demand = higher price.

I don’t see that demand for rental properties has significantly increased of late, or why it will in the near term. Demand for investment properties caused house prices to…[Read more]

Type of easements?

Originally posted by Troy Boy:
as an investment class, property has not changed per se; it is only the buyers that have changed their understanding (or lack or it moreso).
Property as an investment class has changed a great deal! It has gone to being reasonably valued based on p/e and historically significant fundamentals to being grossly…[Read more]

Hi WayneL,
I missed this one, however it is repeated late tomorrow night, so I’ll record it. I have never understood the whole ‘credit card’ (I prefer the term ‘Debt Card’) addiction. It seems everybody needs one, and everybody claims to pay the balance at the end of every month. If that were truly the way cards are being used, it would be easier,…[Read more]

Originally posted by AUSPROP:
inevitable fall…… sounds like a good reason to sell the house and rent it back at a fraction of the cost. I can’t see many people doing that.
Perhaps not many people, but it is happening! Although I would not personally feel comfortable doing this (I value the secure feeling of my home too much), I do know two…[Read more]

Hi Norma,
I don’t see how selling the $370k unit will reverse a $530k debt![eh]
‘Is it now time to sell the unit,so we can have equity to work with…’
This would leave you with negative equity, would it not? Perhaps I have misunderstood your question and information.
Cheers, F.[cowboy2]

Hi DD, I was just making the point that First Class was making innaccurate assumptions (‘I think ,like Steve and a lot of people’) about somebody else’s strategy and passing them on as fact.
From the ‘horse’s mouth’:
Although we (my business partner and I) have purchased over 180 properties, we
currently (at September 2004) own around 100 income…[Read more]

With all due respect, I still disagree. The recent increases in rent have at best been in line with wage / broad inflation. If rents adjusted in line with house price inflation even in a delayed fashion, they would have to increase by 50-150 percent (depending on location) over the next couple of years. That is clearly not going to happen.
Cheers,…[Read more]

Sorry, I can’t help. Out of curiosity, is this the same guy that charges $10,000 for a five day course then charges another $100 for an unscheduled toilet stop? I remember seeing a tv show about one of the gurus and I think his name was Brad S.. omething.
Cheers, F.[cowboy2]

[whistle]

I disagree. Rents are closely linked to wages, not house prices.
Cheers, F.[cowboy2]

Originally posted by first class:I say tomorrow’s gone ,today is almost over so what are you doing tomorrow?.I think ,like Steve and a lot of people on the forum,the only way to make it is to go for it.
I thought Steve had made it clear that he was largely waiting for the market to fall before making significant further property purchases?
Cheers,…[Read more]

I agree, Brenda’s strategy is pretty sound regardless of market movements, and will position her well should house prices drop. Anyone planning to buy into a fallen market needs to ensure they will be in a positive equity position, which is obviously best achieved by lowering the LVR on their portfolio before or at the peak of a boom.

Brenda, I…[Read more]

Hi Johnny1, I sold up 2 IPs leaving me with just a PPOR & beach shack in late 03. I pumped most of my profits into shares until early this month which did rather well. Now I am dabbling in speculative investments (only with what I can afford to lose) and holding cash and hard investments. I think this ‘storm’ is going to be far bigger than just…[Read more]

Wow, our mainstream media are finally catching onto the idea that something might not be right with the state of the world…
Details here

Originally posted by easymoney:
Depending on how much money you can finance with 20% deposits you could end up with 4 – 6 cashflow postive properties by the end of the year.

easymoney,
Could you explain this theory in a little more detail? I imagine your plan would rely on some serious capital gains in order to purchase a PPOR @ $350k and 4 to 6…[Read more]

Hi Feast,
I would very strongly suggest you see an accountant who does not so clearly have a vested interest. One who gives accurate and sensible advice might also be worth considering.
Cheers, F.[cowboy2]