We are an extremely wealthly nation and if you divide latent natural resources by population we are the potentially the wealthiest.

My recommendation: buy exchange traded index funds
STW which tracks S&P 200
SLF which tracks S&P 200 Listed Property
for info http://www.streettracks.com.au/

The basic premise is that you’re not likely to beat the market, so why risk being flogged by it?…[Read more]

If you rule out high inflation (i.e. above 3%), I would add, that it would be “exceedingly unlikely” because such a scenario would result in 2015 prices being 1.5 times more expensive than today, in real terms. More than 10 times the average salary!!! Surely…[Read more]

I.e. if you are paying 5% of the value you would purchase in rent, you are breaking even. E.g. my requirements…[Read more]

Now it is an assumed right that one enjoys a good 15 years…[Read more]

I think the super surcharge elimination could have a more profound effect, as baby boomers close to retirement might…[Read more]

Cough, paleez

Originally posted by The Mortgage Adviser:
The ‘Northern Beaches’ is but a pimple on Sydney’s butt and I don’t think dmichie’s attendance at one or two auctions resulting in a 7% auction clearance rate could…[Read more]

I need to jump in here and explain how useless this statistic is, as it is often quoted. Fact is US pays FAR more tax than Australia. California holds closer to 1/4 than 1/5 of the US population and has state tax capping at over 10%. NY is > 7% above 100k.

Then there is the social security tax of 6.2%. A…[Read more]

So it is exceeding inflation by 7.5% pa. And seems to be roughly neutrally geared. Even with 5% cost in and 3% out, it’s a truly inflation beating proposition. Unless I totally missed something [eh]

One point… there are bulls and there are bears. Do you think a property investment forum should only have bulls? The topics would be rather banal don’t you think? And a bear forum would be worse than dull, it would be down right depressing. So stop questioning peoples motives for posting, they have…[Read more]

If you make this assumption then the rest of the numbers barely matter (within sensible ranges) and the answer is yes.

An exceptional investor could possibly achieve this, with luck on their side. But why not use sensible numbers that the average investor will achieve.

Rough math: (capital…[Read more]

Now since this is gross, this value means…[Read more]

I am not overly familiar with these instruments, so I really cannot pick at your numbers without my own research [biggrin]. However I strongly doubt they are low risk. If…[Read more]

Now, the reason I focus on NET returns, is that you cannot compound…[Read more]

Secondly, you say the “investment you have outlined” exhibits the phenomenal…[Read more]

Back on topic. 3k gross is not 3k earnings. Earnings are after costs. +ve cash must be post-costs. If you’re talking pre-costs, everything is positive, by taking interest as a cost.

The discussion point is whether majoh’s returns are realistic. We have established that your return,…[Read more]

If you paid 650k pre-boom, for assets now valued at twice that, then this is half the return.

But if you have assets at today’s value worth 650k, i.e. anyone here could pick them up for 650k (+ expenses)…[Read more]

0.28*(30000*1.28^8 + 25000*(1.28^7-1)/0.28)
= $176k

So the exclusion of taxes and expenses and the fact that this assumes no difference between rent and capital appreciation makes this the most conservative scenario I…[Read more]

So if you have a higher % of depreciating assets, a higher yield is needed to offset.

We listed slightly (say 2%) under market value so as to inflate demand. But…[Read more]

BTW, I had already made this point in another post: Sydney is even less affordable when you consider that mortgage interest is tax deductible in the US, US interest rates are considerably…[Read more]

Naive view: Oh Brissy is not that bad, check out LA. Brissy is affordable by international standards; overprice, overshmice.

WRONG! WRONG! WRONG!

The facts: average home loan rate is currently 6% which can be fixed for 30 years! You heard that correctly! Furthermore home interest is…[Read more]

For one, just…[Read more]

They fret about LA house affordability, but Australian capital cities actually make LA look CHEAP…[Read more]

http://www.finance.news.com.au/story/0,10166,12485854-14302,00.html

I’ll be back in a year and renting, so my bias is that yields stagnate. I figure at least a year of renting and readjusting to the Australian lifestyle (read 12 months of inebriation and BBQ’s) before we know…[Read more]

I was a ‘peak oil’ follower until I recently read this article…

http://www.rense.com/general63/staline.htm

… which gives some very reasonable debate material re the abiotic oil argument.

It’s a long read, but I always say that if you don’t read all the facts/theories/ideas etc you really cannot make…[Read more]

But, yes as you say, oil goes up economy responds, what happens when it REALLY goes up? $100 a barrel, in real terms?

I respect your opinion, however, wages don’t actually have any affect on Rent

Good morning Investigator, forgive me for jumping in here, but I’m fascinated by fundamentals discussions and I abhor your apparent oversight.

You are correct to state that supply and demand affects rents. Less rental…[Read more]

Now that is interesting! So that will, in theory, increase the demand. But I can see a problem here; less people per house-hold, will mean lower inflation adjusted house-hold incomes. That should, in theory, decrease demand. So again the system is balanced. Surely it can get a little…[Read more]

1. One who’s opinion does not match my own.

So is Myth Busters actually on air in Australia? I’m too long departed to know [confused2]. You even have their catch phrase to the teeth, “busted wide…[Read more]

Fortunately I think this is the reason we won’t be seeing 80’s-style interest rates within the next decade or so. Because the RBA (nearly said Fed, I’m stuck in US atm), can now pack a more concentrated punch, i.e. 0.25%…[Read more]

Yes this is the average and yes everyone hopes (or knows) they…[Read more]

Now… how about some opposing views? I love understanding (or trying to understand) both sides. I usually google one bias, then the other to try and get a balance. Actually that is one of the reasons I’m…[Read more]

Edited by – cjreeves8@hotmail.com on 19/01/2003 11:13:18 AM