[RodCMember@rodcJoin Date: 2002Post Count: 335]

March 11, 2004 - 6:41 am

Hi Raymondo,

judi is correct. If the rental yield is high enough then the rent will cover all outgoings (mortgage, insurance, rates etc) and still leave you some left over. What you seem to be talking about is the -ve geared, +ve cashflow model (as promoted by Margaret Lomas). What we are aiming for is +ve geared, +ve cashflow where you don’t need a your tax return to make it +ve.

These properties are currently easier to find in NZ than OZ (though they still are available here), but as mentioned earlier in the thread you need to do your homework.

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

March 10, 2004 - 10:33 pm

Hi recovery,

try this one http://www.localgovt.co.nz/

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

March 10, 2004 - 10:28 pm

Hi all,

Westan has covered just about all the points. The one I’d really like to support is that if possible make a trip to NZ to check out the areas for yourself. They can be very different when you’re “on the ground” to how they appear over the net. Many of the towns have have areas where you probably don’t want to invest, but you’d never know without checking it out for yourself. Once you have a feel for the locations, you may then be able to make subsequent purchases sight unseen (subject to all the usual clauses of course).

Raymondo, Westan’s right, the way to get around the issue of offsetting NZ losses against Australian income is to avoid having NZ losses by only by +ve properties.

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

March 1, 2004 - 11:29 pm

Gas Wood Fire ?????????

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 25, 2004 - 6:04 am

It’ll be interesting to see how successful the Avalon flights are. Hazelton tried some flights from there about 3-4 years ago without much success. It might be a bit better now that the Geelong road is finished, and with a fast train to Geelong/Lara on the way.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 16, 2004 - 11:28 pm

Hi Castledreamer,

I’m going in March, whereabouts are you going and when?

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 16, 2004 - 11:23 pm

I’m looking for 4 this year, though if the numbers work out I may go for 6.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 11, 2004 - 4:09 am

Just to clarify, the example I used was our PPOR. We upgraded in 1996. The house we upgraded to has doubled in value since then. I don’t expect it to drop 30%.

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 10, 2004 - 11:29 pm

westan,

My own experiences of Melbourne agree with your assessment.

We bought our first house in Melbourne for $84K in 1987. It was probably worth about $125K a couple of years later. It was sold in 1996 for $110K and would now be worth around $220K. This was a typical 3br suburban home.

Certain segments of the market may have seen a 30% drop but there wasn’t 30% falls across the whole market. I can see a few years of sideways movement and some “downward drift” but without some major external event I think across the board massive drops are unlikely.

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 10, 2004 - 11:06 pm

mini,

I reckon you’ll find that rents move like (but not necessarily with) house prices, some years they will increase, some they will stay the same and sometimes they may even decrease. Long term they they probably do go up with inflation but short term many other factors will have an effect.

I wouldn’t count on $10 per week every year.

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 6, 2004 - 12:47 am

Hi diggler,

I’m sure mini will respond to this anyway but..

The merits or otherwise of buying sight unseen have been debated here several times already. It all depends on your own comfort level, personally I would buy sight unseen in a town that I knew, but not in somewhere where I’d never been. Others may be different. Having said that, no one is advocating not doing full due diligence on everything to do with the deal.

There certainly are some real dumps in this price range in NZ (yes, I’ve seen them too), but there are also reasonable, sound, tenantable properties. It’s all a matter of what suits your investment strategy.

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 5, 2004 - 10:55 pm

I used a Melbourne based broker for Victorian purchases then used the same broker for QLD purchases.

No problems.

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 5, 2004 - 10:39 pm

Mini,

I reckon you’re going to get deluged again.

I’m always interested.

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 5, 2004 - 6:10 am

Congratulations elves,

On the century that is. [8D]

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 5, 2004 - 6:03 am

Yep, just checked.

The standard comsec margin loan interest rate (variable) is 7.9%, whereas the protected ones range from 12% to 28% [:0] depending on the stocks in the portfolio and loan term.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 5, 2004 - 5:56 am

We probably should stop talking about this, it’s getting a bit close to the “forbidden” shares topic. []

I think the catch with that Comsec product is the huge interest rate.

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 5, 2004 - 1:29 am

Westan,

thanks for explaining what I meant about the margin loan, I was a bit brief (it was 6am after all []) when I wrote that.

Yes, I concede that there are companies which have gone from Good to Extinct very quickly. But in most cases you should be able to get out before you lose it all.

Michael, I agree margin loans (like all forms of leverage) should be handled with care.

regards,

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 4, 2004 - 9:26 pm

where is it?
how much is it?
what’s the rent?
what do you want to achieve?
why NSW?

There are plenty of people here willing to help but you at least need to start by asking a decent question.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 4, 2004 - 9:14 pm

I hope you’re right mark, my 80% was a conservative estimate. Many have gone up quite a bit more.

Rod.

[RodCMember@rodcJoin Date: 2002Post Count: 335]

February 4, 2004 - 9:07 pm

I cann’t remember the souces maybe from ATO the is one millionair at every 80 people

So with 30000 members, PI.com should have 375 millionaires?

Come on, stand up and be counted. []

Rod.