Thanks Admin- you rock!! Sorry for killing your fanfare though

[bawl]

It’s a great thing you’ve done Admin- chills the Forum right out )

kay henry

Yeah, you godda be quick sis- hehe.

[whip]

kay henry

sis,

I don’t think IR rises are good for *anyone* who is investing in RE. Whilst it might make some people jump from their investment (those who have gotten in over their heads), even if you buy their properties, you are still paying higher IR’s on that mortgage. And we can’t just increase rents merely due to an IR increase- because the IR’s may…[Read more]

James,

Banks in sydney have also been loaning 80% LVR on apartments in sydney inncer-city too. I think it’s been thr highly developed areas- glebe, ultimo, Green Park etc etc. Those areas <10km’s from the city. But those areas have also done very well in terms of maintaining values.

I think banks just wanted to slow down on the big spending. It…[Read more]

dreamer,

Given that IR’s can go up every month [!] then I think it would be a good idea to factor in at least a few percentage points. Particularly if you’re looking at a 5-year budget.

kay henry

georgis

Wouldn’t that be a bit premature of banks to do a margin call? Is that actually legal for a bank to do anyway?

kay henry

Well, a 1% interest raterise on a $1 million loan would be… ummm…. an extra $10k a year, or $200 bucks a week.

Whilst we might not be *overly* concerned about interest rates, there would be few smaller IP investors who would be able to pay IR’s of ten years ago.

I don’t think this means “crash” though. I think it means some people will lose…[Read more]

Originally posted by secretgnome:

Also another thing to think about is you’d expect maintenance on 50k properties to be a lot smaller than that on a 200k property, so at least you’re not hit with a big bill all at once [:0].

secretgnome,

I have to disagree here. Newer properties (more exxy, negative geared ones) do not require the same level…[Read more]

fifi,

I type into google.com.au “population decline NSW” or whatever… then all the studies will come up- including ABS info about which areas are in population decline.

kay henry

See, my problem is…

REIV says: REIV News

12 month house market wrap
The Age – 28 February 2004

Melbourne’s residential property market maintained its upward trend with a median house price of $363,000 being recorded for 2003. This represents growth of 11.8 per cent growth since 2002 and a staggering 81.8 per cent growth since 1998.

… w…[Read more]

Yes, and don’t we all live by a deficit? (as in owing money). Our micro level of living is no different in theory to a Government’s. Basically, if a govt has a deficit based upon good investments, then it is making the country money.

There is nothing wrong with a deficit. budgets are all political – depends on what money is spent on.

kay henry

You can buy the Nothing Down book on ebay.com.au

kay henry

sis, where are you? Are we all gonna meet up and see Mel this weekend??

kay henry

Thanks Shushar!

Must be hard being a RE agent. given that even valuers get it wrong at times (look at some of the shonky inhouse valuations done on some apartments), it means RE’s now have to be valuers too! Think i’ll stick to my job

kay henry

canneram :o)

Out of little things, big things grow Perhaps if you make a bit of cash out of shares, you can buy RE again??

Best of luk with it- I think we all love RE on this forum []

kay henry

Heya sis :o)

How does your partner service $3 mill of debt? Rents mostly, or a well-paid job? equity doesn’t mean anything if you can’t pay debts.

kay henry

stingray,

If you have a loan of a million, but property worth millions, seems there isn’t much worry. You could sell some of the poor performers (re rental yield) and buy up some CF+ properties. Apparently, these don;t affect serviceability- you can borrow forever, so I’m told!

You may have to change your strategy if you want to keep borrowing.…[Read more]

Yack,

Given that you have been around for a while, you’d *know* the past performance doesn’t indicate future performance. Will your properties continue to grow at 20k per annum for the coming years? Remember, there’s new people on this forum, and I think they benefit from a shot of reality, as much as from past success stories. If you buy *now*…[Read more]

OPM,

Have you got a property manager in Wanganui? Presumably, if you’re far away from the property, then you do. I am far away from mine too, although I’m in Australia. I rely on my PM’s to do all that stuff, and to find good reliable people to help me out. That’s what they’re paid for.

By the way, MiniMogul is also an investor in NZ, and she…[Read more]

Jason

This might be the way to go NOW- as in, increasing equity means you can borrow more etc. What happens for those starting out now, though? where the CG’s might be much much slower?

Also, equity doesn’t necessarily increase serviceability. The only way to increase serviceability is to get a pay rise, increase rents etc. And rent increases…[Read more]