Dear CRJ,
This may be prices returning to reasonable levels after being heavily inflated during the boom period. I see prices dropping but some of the starting prices were just not realistic. I guess we will be back to normal when we see the 1% rental theory apply again. When you pay 300k for a property and will expect to get $300/week rent.

I’m…[Read more]

Dear Yack,
Your interest rate theory is soon to get a very big test. The baby boomers have been driving house prices from the 60s and, it is very true, they have been ‘manipulated’ by interest rate changes. However, the BBs are going to try cashing up and prices will drop despite any interest rate movements. The only way prices will not drop and…[Read more]

The Bis Schrapnel report, while I haven’t read the report, is probably hinting at the start of the Baby Boomers retirement episode. It has been calculated that the oldest BBs reached 55 in 2001. If retirement age is 65 this group will be reaching retirement in the year 2006. As “empty nesters” it is thought this will herald a period of asset…[Read more]

To some extent, I have to go along with KP because smaller towns do have a good supply of properties that are better valued than in the city and city suburbs. There are enough renters to keep rental properties at reasonable occupancy rates. I include rural properties, those little farms just outside these towns, as being part of the area I…[Read more]

Usually very solid – especially well built housing commision houses.

However, if there is any evidence of cracking it may indicate a serious problem. Have a building inspection done.

They are a bit unattractive but “bagging” or rendering will improve the look. Even a new coat of paint.

Regards Marsden

I follow Petebell’s routine and pay my CC each month. The annual fee for the card is paid from the accumulated points. I try to buy everything on the card because I get a statement each month lsiting my spendings. I also download all these things to my computers MYOB and keep track of things that way.

I think its great.

Regards Marsden

Another aspect of my previous reply….. rentals seem to be on the up. Combine the two, that is, the prices are settling and rents are rising and we are growing closer to cash flow positive. We are not there yet! Even with deductions for depreciation and considering tax gearing there is a way to go.

There is a need for some gloom. We are facing a…[Read more]

Dear JB,
No you are not wrong in fact your comments make a lot of sense. I find that prices seem to be dropping in my country NSW area of operation and I see good possibilities just around the corner. This area’s expectations seem to be inflated after the recent boom but vendors are realising that these prices are not sustainable and are reducing…[Read more]

My 10 day rule is really a touch of sarcasm. I feel somewhat concerned at the lack of debate on a topic that is having its effect on property investment now. The oil crisis will, if it continues, obviously cause increased inflation- which, in turn, will likely cause interest rates to rise. The baby boomer phenomenon is a special “one off” episode…[Read more]

Dear Jaffa,

Many thanks for the calculator, very slick!

Marsden