Is the HSC not round the corner? Concentrate on getting through that mate. Wished I started in the game when I was 18 too but glad I had a “normal” uni life. A good job with escalating pay rises year on year only helps the serviceability and by then you will know not to blow it all on fine wine, women and WRXs. Only started 3 years ago but all you…[Read more]

Headline inflation is running close to 4% pa now but in reality its something like 10% when you add other cost of living items like rent and mortgage payments which Bureau of Stats refuse to include to keep inflation artificially low. So your real return is actually negative IMO. But still better than sticking it under your pillow.

Domestic and…[Read more]

Nice one Simon, hadn’t thought of that strategy of selling to trust but I’ll need to pay CGT on the sale side too won’t I? I suppose what you are doing is crystalising the profits but keeping the IP in the “family” so to speak with associated stamp duty costs. My strategy of releasing equity from IPs was to use LOC to pay interest & IP costs then…[Read more]

Unfortunately its the opposite. The bottom end was filled with investors and these are the guys who can’t afford to hold. That unit purchased in Cabramatta for $235k in 03 and picked up by agent for $90k @ m’gee sale recently is prime example. No offence to SW Sydsiders but I sure wouldn’t want to live out there if I had the choice. We lived in…[Read more]

Is this as an IP PPOR? Yields are still very low though. You guys talking about the old areas? Booker Bay, Umina, Woy Woy or Terrigal, Avoca way? Or up the Entrance? A lot of land subdivisions west of F3, not sure what that does for future land values….

So theres an article in today’s SMH about m’gee sales being twice the amount during Keating’s 17% interest rate era and affordability index in Syd being still at 37% (30% the avg), with Syd at 20% back in 1997. Hence Ryder and Jenman advises that now is not the time to buy in Eastern Seaboard. Yes we all know that – there was the St Clare story…[Read more]

I think its more like the other way round. Eastern staters having a “we” and WA mentality of “who wants to live there”. Well this resources boom have firmly put them on the map. How many times does the media throw in WA or Perth when they talk about housing. When I started buying, they were still reporting on what 80% of sheeps were doing -…[Read more]

For you Perthites, what do you think of Guildford Grammar? Heard its one of the most exclusive provate schools over there. But not many people live in good ole Guildford do they? A lot older homes and yeah theres the airport just South of Guildford. Is the airport noise actually that bad?

Probably posting the wrong question here on a +ve CF site but I really don’t mind a few $500k trades go through down that area. These darn WA valuers just can’t seem to keep up….

Probably need a couple more zeroes behind it I’d say. Haven’t checked in here for a while but looks like theres a few newbies come on in search of the holy +’ve CF grail but only to be enviously mesmerised by Dazz’s C/IP posts. How about throwing these guys a bone Dazz? I’m sure theres enough willing $300k participants to get a syndicate together…[Read more]

Lots of money was there to be made in the Syd/Melb cycle from 99-03, Brissy followed and then obviously now seeing a maturing/ed Perth & Darwin so $100k from one property is actually quite the norm if ur on the right side of the trade. However going forward is a totally different story. Everything is so exxy right now. Not even sure if the experts…[Read more]

Do you already have titles? If so, why won’t you flick em and move on to another deal? People are paying a premium for titled blocks ATM. Bear in mind that most new estates in WA at the moment have plenty of blocks that are held by investors with much paper profits. Will they be able to settle and hold should the market take a turn? 3 years ago,…[Read more]

I’ve been searching high and low for decent titled blocks. Those selling for < and low $100s just 18 mths ago are now well into the mid $200s. And a complete turn key 4×2 with most basic builder costs min $200k. So its $450k+ in a decent estate incl stamps and holding costs. Will it be worth $550k in 18mths time? or will it below replacement cost…[Read more]

Where is it and what do you want for it? Obviously the agent already has a sign up? Sack em and you can then put your own up for $100. If you haven’t had any hits through re.com already, then unlikely to. Local ads don’t really help either if locals don’t want it. Perhaps a select target market? Like o/s expats or interstate newspapers? Have a…[Read more]

Is there a boom going on in WA?? I must have missed the boat.

Its a tough one indeed. Should commodity prices take more of a freefall and oil follows, the logical step is for easing of monetary cycle as inflationary pressures will be alleviated. The govt will not tolerate any sign of depression so wll use interest rates to shore things up pretty quickly. The Boards are all very quick to act these days. This…[Read more]

Sept Futures were implying a yield of 6% this morning. Clearly thats been over sold. The banks could only hold the low rates for so long seeing how the curve has steepened significantly in the last month. Hence Hompath’s 6.39% “special” for the 2 – 5 year rates have now increased 20bps. Most Economists still think we’re not going to see a rate…[Read more]

I too have been shown a deal like this before but turned it down. To me the area did not have a great potential for growth and the rent return post lease was going to be halved. Bear in mind most of these estates will be new and may take a while to get filled in. Check out some posts about buying into new estates and margins in H&L deals. At least…[Read more]

From these discussions, I think you guys have pretty much hit the nail on the head – it is a cost to doing business. You can diversify as much as you want but it will always come and bit you in the bum if you want to be a serious investor. Setting separate DTs or HDTs will create a separate structure but VIC and NSW OSRs are already on to that and…[Read more]

Are you using an agent? Depending on the covenant (some developments prohibit you from selling), you can just go get a sign done up and whack it on there. People driving around will see it more so than advertising in Domain or local papers..etc.. Or you could put a cheap 4×2 on it then rent out so it won’t cost you so much in repayments. If you…[Read more]