Not at all! As stated as above, I believe that government intervention is a mistake, and that would apply to the sharemarket as well as property.

However, I believe the sharemarket is a different kettle of fish in that:

– ‘mum & dad investors’ tend to invest some or all of their savings and perhaps if they are not too risk averse a share loan /…[Read more]

Originally posted by andymitchell:
Derek,

Thanks for the comment, but that is something I have been aware of for the past 18 months, unfortunately I cannot do anything now but buy the unit, or forfeit the 10% deposit. I am stuck between a rock and a hard place and do not really have a choice.

I’m sorry to hear of your predicament, and while I…[Read more]

Originally posted by St Johns Ambience:
I’ll bet a large percentage of Investors would rather this tax were not there.

…and I’ll bet a large percentage of people struggling to save 20% deposit on their first home in Sydney are glad it is there!

So who is more deserving of having their desires met, the 28 year old earning below average wages…[Read more]

Originally posted by Monopoly:
Originally posted by Derek:
Bear in mind that sucessful investors are long term players.
And in addition, the longer you play the better your chances of winning!!! [biggrin]

Huh? [worried] I would have said that mildly successful investors are long term players, highly successful investors take profits when the…[Read more]

Originally posted by St Johns Ambience:
NSW govt haven’t done themselves any favours though. I don’t know what idiot thought up the new exit tax but it certainly has hurt RE investment in this state a lot .
Can you give some examples of how you feel RE investment has been ‘hurt’? If you mean prices are falling as a result of less people buying…[Read more]

Plan B:
Part 1) Work hard, save hard (but don’t forget to enjoy the ride). You say you earn $480 per week – how can you increase this? Education? Promotion? Overtime?
Part 2) Ditch the mobile!
Part 3) Invest (as you said) in cashflow positive assets. Educate yourself to all your options. We are heading into unstable times with (IMNSHO)…[Read more]

Originally posted by Tonto:
Why are there so many houses on the market??

I think that was a rhetorical question? A) Because there are very few people buying and very many speculators trying to bail out/ cut their losses.

Maybe the idea is to sell now at the top of the housing cycle and use the already gained capital growth [ ABOUT $330,000]to…[Read more]

Originally posted by JasonBourne:

if you wanted to retire in 7-10years, you would need around $700K (unencumbered) in 7-10years time. This $700K (earning an ave. of 7%p.a) could give you an income around $45K per year for around 40 years.

To get the $700K (unencumbered) you would need to buy around $950K of cash flow property in the next 12-24…[Read more]

Originally posted by Michael Whyte:
Dare I even suggest wraps for CF+?
Wraps work well in a rising market because you are insured against wrappee default with the equity in the house. In a falling market the wrappee can just walk away if he/she gets uncomfortable with the figures, and the wrapper cops the capital loss. Very risky. Alternatively…[Read more]

Ok Collie, I can very clearly see 2 rather big problems with your scenario.
1) Why would the house be worth $80,000 more after your $20,000 renovation?
2) In a falling market, have you done a comprehensive risk analysis with <$160,000 final selling price?

I’ve seen many people do cheap renos with their own labour over the last 5 years and make…[Read more]

If you sell an asset or save for the holiday, it will be your own money you are spending. If you ‘withdraw equity’ by extending one of your mortgages, you are simply using your perception of increased wealth to secure a larger mortgage. I remember the good old days when one of the main financial strategies involved decreasing your mortgage over…[Read more]

Originally posted by unannounced:
It’d be like a forum for people with bad teeth, or a gimpy leg.

The question almost borders very slightly on being offensive. It’s like asking ‘Do you know of a good forum where poor people congregate’. But that’s looking into things too much.[blink][biggrin]

I find your comment absolutely offensive.

Besides,…[Read more]

Not in reidential or commercial real estate, that’s for darn sure![blink]

Originally posted by unannounced:
Those who have read on Buffet (even Steve touches on it) know that diversification does reduce risk, but it also reduces returns.

Do you subscribe to all of Buffet’s investment philosophies or do you selectively acknowledge only those that reinforce your own beliefs? Putting your eggs in one basket is a great…[Read more]

Hi Spanky,
I have used Melbourne data for two reasons; because I am familiar with the market and its last couple of cycles and because there is very little other reliable data to choose from.
Means & Averages are a meaningful way of illustrating my point & the very essence of statistics. Without such methods it is impossible to describe movements…[Read more]

Hi domcc1,
I agree that your scenarios hold some weight and that only time will tell for sure. I don’t think you should underestimate the effect of sentiment on the market though, both during a boom and the subsequent bust (/soft landing).

So, I take it you are holding out on your property investing or are you looking for CF+ deals?

I’m…[Read more]

Originally posted by woodsman:

Are you saying that we are going to experience 10 years like Japan has during the 90’s. The differences between Japan and Australia’s respective economy’s are as vast as the two country’s cultural divide…I can’t see the relevance.

Of course there are many economic, cultural and social differences, but my point…[Read more]

Originally posted by Spanky:
in 10 years’ time, (remembering property is a LONG-TERM ASSET) that property is going to be worth considerably more than it is today

Do yourself a favour and Google property prices in Japan. To quote myself:

“The price of land in Japan has fallen for 13 consecutive years (down 6% last year alone) and is now close to…[Read more]

Originally posted by domcc1:
Initially it will push a fair amount of first home buyers out of the market, which I feel will push rents up in the short term for the average house in averageville.

Why would rents go up? Presumably these first time buyers are already renting, so their innability to buy will not increase demand for rental…[Read more]

“How do I access my equity?”

Sell your house and pay out the loans. Any money left over is yours to keep, and you will have “accessed your equity”.
‘Equity’ is not equivalent to money in the bank. It cannot be accessed & spent. It can be used as collateral to take on additional debt, but it does not actually pay for or reduce that debt unless you…[Read more]