Well done Fann.Would you mind letting the forumites in on where your properties are so that the ones who are asking the question about where are the 11 sec rule properties are might benefit?There has been a lot of discussion about the 11 sec rule and how hard it is to find c.f.p using it, and most people are agreed that they are still out there,…[Read more]

F; I think back then it was a case of a country town that no-one really knew or cared about, and the freeways weren't built and Steve's book hadn't been written. In country towns like that (Ballarat) there was traditionally not a lot of cap growth, but the rents still continued to creep up with the CPI, so by the time Steve arrived the rent…[Read more]

Yes F;once upon a time, in a far away galaxy, there were properties for sale for around $50k with a rental yield of over $5k per year, and in an area that not many people knew about.Then it became public knowledge through a book and the universe rejoiced.

I don't know who he is. Interesting article though. Can't say I disagree either; I'm not a negative person; just highly cynical, and do things opposite to the crowd. But I won't pay $50 p/m for a newsletter though, or $195 for a book.Reading his article reminded me of a few things;1. Rich Dad's Prophecy – a great book by Robert Kiyosaki about…[Read more]

There needs to a balance.In today's society, there seems to be an ever-growing trend (thanks to aggressive advertising) for people to buy on the never-never, no savings/investment, buying the latest gadget, but  not much is being done towards securing their future and/or retirement other than superannuation, or rely on the pension, or hope to win…[Read more]

I want an area that has a good representation of renters, and a good amount of factors to support cap growth (infrastructure, employment opportunities, transport, etc), ability to add value and good tax benefits from the property as well.Without good rent returns and tax benefits (cashflow) the investment will fall over if you can't carry the neg…[Read more]

Hi Jon, I think we have covered it all? You are right; I do tend to favour the protection of the consumer; unfortunatly I have been burned a bit and this colours your view. Please know that I also know about the games played in Private Treaty sales as well. It is a pity that we are even needing to have this discussion about dodgy practices.I can…[Read more]

Hi Jon,as you probably already know it is very hard to locate positively geared properties in this day and age. Some people have posted recently saying they have located some, but I think the location and the cap growth factor may be questionable.I'm not sure what you are asking for exactly here – are you after properties to buy that are pos…[Read more]

You need to be reasonably up front about the range you are looking in, otherwise the agent has no parameters within which to work. I never reveal my upper limit though, but give a range that I am comfortable with.In my experience, agents will usually throw in a number of properties above your range anyway; no harm in trying, right?  I used to…[Read more]

"The main reason that people dislike auctions is that they don't have a value to work backwards from. (ie. a listed price) Jon"Actually Jon, if only this was the the only reason.The main reason(s) why people don't like auctions are:-1. Under-quoting – this is where the agent advertises the property (with or without the Vendor's permission) at a…[Read more]

"Just a different approach to life. Yours works for you but not me, mine works for me but not you. That's cool. I'd really love to hear your explanation of how leasing a car works under ordinary circumstances (say 10,000 to 15,000 km/yr) though…"It doesn't work any way you cut it or try to justify it, F.The accountants and CEO's can argue all…[Read more]

Brenda Irwin wrote:
I am coming around to the thinking that we need a recession. Is anyone doing it tough nowadays with credit so easily available? Pay TV, plasma TV's, laptops, digital camera's, DVD's etc now seem to be the norm whereas once they were prized as affluent things which we could only dream about. When we drive along the…[Read more]

That's right Peter; those inventions are part of progress. Aren't we lucky to have them, or are you still not sure about how bad life is?But those whinging old people who "had it tough' didn't have them.That's the point and you missed it.You don't know what a hard life is.Try walking in their shoes for a year before you critisise them and call…[Read more]

Hey Bruham,there was another 5.00 news report yesterday on the spiralling upwards numbers of foreclosures over here.This is all the backlash of the A.R.M loans (Adjustible Rate Mortgages) that were all the rage during the boom that ended last year, as well as the recent interest rate rises and the ones still predicted to come.I think in the next…[Read more]

We bought a house several years ago that was beyond our ability to borrow, but we needed it for a business purpose and it was perfectly suited to this purpose, so what the hell?We had good cashflow for the loan repayments, but not enough deposit to use a normal loan. This was before all the LoDocs etc had hit the market in a big way.Through our…[Read more]

First thing they should do is look at every cent they spend and what they spend it on. With a $100k income and her earning a bit from the Govt, they should be able to rack up the savings pretty fast, but in life people tend to fit their lifestyle to their income.The rent is the obvious one; if they are really passionate about buying and getting…[Read more]

My property Management varies from 6 to 7.5% plus G.S.T.If you are wanting a quick estimate of total holding costs for an I.P, allow 20% of the rent to be swallowed up by the costs (not including loan interest).This figure includes:-4 weeks vacancy per year,insurance (Landlord and building/contents)rates (water,…[Read more]

That's a tough lesson learned; never rely on the OPINION of a real estate agent or anyone else involved in a property investment. Research your own FACTS.Not much you can do I'm afraid; hopefully you can carry the neg cashflow and there will be some good cap growth soon to offset it.

Peter, that was a good post that ended badly.Good to see we have helped you change your mindset and get stuck into it, but…..The old people I know who are tight are that way because they have no money.The old people I know who are rich are very, very generous and live life well.When you consider that the current "old" generation consists mostly…[Read more]

Fill in the space to create a storage area, then hang a you-beaut plasma on the wall facing the couch.