[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

August 2, 2006 - 1:21 am

Originally posted by gmh454:

Originally posted by kinkso0o0o:

Ok, so what if the interest rates rise and the property market softens or bursts.

2. Rents rise

Damon

Damon I will ask you WHY.

Have asked that on this site before, without answer.

Why will rents rise in a slump, …

Building industry slides…
people stop spending…negative wealth effect
higher unemployment
uncertainty about jobs

BUT rents rise

Your rationale please.

Supply and Demand.

If what you say actually happens then less people will want or be able to buy their own houses. This will increase the demand for more rental properties as more and more people decide not to buy their own home and rent instead, as its cheaper.

In addition to this, interest rates are increasing and some investors will be forced to pass on the extra expense to the tenant.

Maybe I should have said yield increases rather than rents, but all the same from my research both will happen.

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

August 1, 2006 - 11:31 am

I’d be keen to join the party, er, club

I’m 28, live in Adelaide and have a ppor and 1 ip.

happy to discuss anything investment related/experiences.

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

August 1, 2006 - 5:12 am

Hi All, been ahwile since ive posted.

Ok, so what if the interest rates rise and the property market softens or bursts.

1. Housing becomes cheaper
2. Rents rise

Which means the following for exisitng investors:

1. LVR increases

But this doesnt matter if you have a semi-secure income to manage the debt.

2. Yield increases

As more people decide to stay renting and investors pass on interest costs through rents.

3. More CF+ properties coming onto the market.

There is an upside and downside, yes, the growth will reduce, but the yield will improve.

After recent valuations, I’m cashed up ready for the bargains

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

April 20, 2005 - 2:46 pm

And mustard!

Sorry, couldnt help it

kinks

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

February 7, 2005 - 12:46 pm

Originally posted by stargazer:

You keep the 90000 and purchase another PPOR.
or
You purchase another IP

Just to followup from Simon, if you use the 90K to purchase another PPOR, No, you cannot claim the interest.
However if you use the 90K to purchase a IP, Yes, you can claim the interest.

I had the same problem unfortunetly and have a fair bit of equity in my old PPOR but buggar all in my new PPOR. I see it as a lesson learned.

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

February 1, 2005 - 1:41 am

Well, as promised I thought I’d let you know the outcome of my negotiations.

ANZ came to the party and gave me a further 0.5% discount off my variable loan part of my PPOR ($98000) for the life of the loan! This is without obligation as well!!

This brings it down from 7.07% to 6.57%, saving me about $15,000 interest.

It doesnt match St. George, but im very happy with the outcome.

Big big THANKS to Steven for giving me the info on St. George!![biggrin][biggrin]

Thanks,

Damon

It helps to ask

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 28, 2005 - 5:11 am

Originally posted by Ty:

3. or would i be better to wait till i have the $15,000 and then have all the money that we get in rent for myself.

Save the money. Dont borrow if you dont have to (as you said, you dont need the money immediately).

Definately get you name on the title/deed of the house.

Cheers

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 24, 2005 - 5:21 am

Just spoke to ANZ and they seem to be willing to negotiate on the variable interest loans, after mentioning the stgeorge package. Waiting on a call back.

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 22, 2005 - 2:19 am

Hi Sansue6, it all depends on the measured risks.

The higher the measured risks, the higher your expected return and vice versa.

What are the risks of the project?

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 22, 2005 - 2:15 am

Yea, I thought as much re: fixed rate loans.

Will let you know how I go re: the other loans.

Cheers

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 21, 2005 - 1:19 pm

ANZ’s current 5 year fixed rate is now lower at 6.95%.

I wasnt sure how much negotiating I could do on the fixed rate loan, since after all, i fixed it at 7.2% 10 months ago.

Hmmm, I wonder if anyone has had any luck with negotiating a better rate on a fixed rate loan with their lender?

I’ll give it a shot anyway when i ring them Monday!

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 21, 2005 - 8:35 am

Just had a look at the st george package.

Correct me if I’m wrong, but if ANZ agree to match it my new scenario will be:

ANZ Breakfree Package

PPOR
Split Loan – Variable @ 6.37% $97,953.38
– Fixed (5 years) @ 7.20% $183,248.34

IP
Interest Only Variable @ 6.37% $100,000.00

Not bad at all, time to give them a call!

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 21, 2005 - 7:03 am

Paying $300/year for the package. No other fees that i can recall.

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 13, 2005 - 12:58 pm

Update IE to the latest version, IE 6 SP2(goto windowsupdate.microsoft.com), it contains a pop up blocker under the Tools menu.

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 9, 2005 - 9:27 am

Its more of an obsession for me…Ive definately got the bug…

But, if your starting out, I’d recommend Steve’s books as well as some general wealth creation books (ala Paul Clitheroe, Robert Kiyoski)…

Putting a dedicated time figure on it would be hard to do as some hours are more productive than others…I guess do what your comfortable with…

Spend time reading from the gurus, search areas online and get a jist for it, even email the agents for more details on a property and source contacts for when your ready to buy and basically go through the researching process.

I do this just about everyday, but as said before do what you want when you want/can…the trick is to not think of it as a competition against other investors…set your goals, break them down and then go at your own pace…Your required commitment level will have already be set by your goals! EASY [specool]

Well easier said than done…Good luck mate!

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 9, 2005 - 9:13 am

muchas graciaus

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 7, 2005 - 1:35 pm

Maybe i see it too simply, but back 2000-2001 when i bought my first house (ppor) everyone was going nuts saying “oh, its so cheap to borrow money atm” etc etc. That was the major driving force back then…

The same type of first home owners, mums and dads etc would be the same people swept up into the craze once again…

So i guess with that said, if you make it EVN MORE cheaper for people to borrow (ala Derivex)I could see it possibly happening again. However Derivex is a BIG IF!!!

I’ve put in a request to Derivex and will be doing my due diligence once i recieve the forms. It’s just a matter of time as to whether PO Loans are for real or not….

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 7, 2005 - 8:47 am

Hi Derek,

Yea I know, I can choose an avatar, but the problem is i cant update my profile to save the avatar

So, I would if i could

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 7, 2005 - 4:52 am

same deal here…

basically when i go to edit my profile and even if i dont change a thing and hit submit I get the error “Username already exists….”

What i guess its trying to do is create a new user when updating the profile and it fails as the username already exists

i need an avatar, please fix

In theory, there is no difference between practice and theory, in practice, there is….

[kinkso0o0oMember@kinkso0o0oJoin Date: 2004Post Count: 61]

January 7, 2005 - 4:28 am

Not a huge amount ($195 to $200 last month), but they do seem to be increasing slowly…

seyeidde, if interest rates rise significantly it is probable that the reaction will be to increase rents to cover the extra costs. However, this will also force the potential tenants to be way more choosey on what bang they get for their buck. This is where your creative improvements to your IP will benefit.

If you have IP’s in areas where there is not a lot of rentals available then it wont be felt as much.

Raises the question, where can I get stats on current vacancy rates for IP’s for selected areas?

Cheers,

Damon

In theory, there is no difference between practice and theory, in practice, there is….