A lot of the property gurus talk about never working and being able to buy property, and I often wonder how they manage to keep getting finance form banks with no income (other than rent). I think a few details are conveniently left out, unless they have been extremely creative with finance. Personally, I think rental income can be more reliable…[Read more]

Sounds like there might be some cheap properties coming on the market in a year or two.

You can leave your PPoR for up to 6 years before you will be liable for C.G.T on it if you ever sell.The good news is that while your PPoR is an I.P you can claim all the associated holding costs and any loan interest. It would probably be better form you to move out of your PPoR and rent somewhere yourself, and keep the two existing properties…[Read more]

No, a bust does not always follow a boom. Sometimes the market simply stops going up.To someone who thinks that the market continually keeps going up, then I suppose they would call that a bust. Don't confuse higher quality with higher price either. Many investors think the brand new half a mill apartment off the plan in a swanky CBD postcode is a…[Read more]

That's true what raddles says; the property tax I was referring to was the yearly tax that homeowners are required to pay in the U.S. it's around 1.25% of the property value apparently.In Aus we don't have that.

I once owned a brand new hyundai excel – "drive away no more to pay" for $13,990.I did 196,000km's in it and had it serviced twice in 5 years. Total abuse.Bought 4 new tyres and a new battery.It never missed a beat and I sold it for 5 grand. Now THAT'S a car!

True story (but funny).Driving in my car the other day with my 5.5 year old son. He says, out of the blue; "Dad, when I see girls, or think about girls, I get a tingle in my willy".I, of course, kept a straight face and informed him that this was perfectly normal (but is it?)Lock up your daughters?

75 days is neither here nor there in your life.I'm a conservative (safe) investor and my advice is to settle on this property and then re-evaluate. No need to rush and get into possible hot water.

I said: "For example; if I have $400k to spend on a property, and at the auction my nearest competition only bids $385k, do you think I will bid the full $400k to secure the property? Absolutely not Jon; I'm going to offer $385,500, or even $385,100 thus robbing the Vendor of $15k that I might have had to spend if there was genuine interest in…[Read more]

This is all good news as well for all of us in Kalgoorlie I'm sure.My properties there have doubled in value in 4 years, rents are going up too.Woohoo!

Don't let this unfortunate experience put you off. Learn from it and keep on investing. At 21 you will be a wealthy person by 40 years of age.

Hey,he doesn't say "like" and "you know what?" and "omigod" every second word – can't be from L.A. Although… he DOES have a Starbucks in his hand in the photo; maybe he is legit.All he needs is the cell phone in his ear and the token miniature dog hangin' out the driver's side window of the Hummer or Beamer or Merc to complete the package.Just…[Read more]

1# Does a bust always follow a boom2#Must housing value drop and can it just stall3#Will the mining boom postphone a bust or can you bust even with the china fueled mining boom.4# Can a change in government really bring a bust or is it just a bad time to win.It depends what you call a bust.In recent years there have been a few media reports of…[Read more]

Don't forget the third strategy; positive cashflow AFTER TAX.I have talked about this numerous times on this forum; briefly it means that your property has a positive cashflow after you incorporate your tax return. So the profit is tax fee, unlike positive gearing where you pay tax on the profit.There is nothing wrong with positive gearing; no-one…[Read more]

Prices do drop in Aus Neil;realtors are good at spinning the market to beat it up. Always add a pinch of salt when talking to a realtor.Historically, over the long term prices always go up – so if you are a buy and hold investor; no problems."I have been amazed to see houses sell for more than the seller originally wanted through auction! I see…[Read more]

If it is a unit you may find that the water usage is your responsibility. Many units are only metered to the building (not individually), and the landlords split the usage bill.If it is a house and they have their name on the water usage account (and you are on the rates account) then it is their problem and the council will be after them.If there…[Read more]

I have 2 more questions; what is your plan with the money after you sell the property?You said you were aiming to do 2 reno projects per year; does this mean you will be aiming to become professional renovators and live off the cashflow of the sale proceeds?

"OK Foundation.I am really starting to think more about your opinions and have a question for you. The million dollar question.When do you think things will turn for the worst.I have a five year plan to have my PPOR paid of and own half of my IP( Thus reducing my current debt from $500,000 to $150,000). This impending bust may throw a spanner in…[Read more]

I just saw the website for changing places. Why do real estate agents always wear red ties in their advertising guff??

The problem here is the house has already tripled in value in the last 2 years. You've missed the boat to a large degree. There may not be a lot of cap growth left in the town for a while; it's hard to know.Personally, I wouldn't believe her story; no-one willingly loses money like she is, unless they are financially illiterate. There must be…[Read more]