I suggest you forget the arguments over the price of oil per gallon in the US vs chicken feet in China and focus on matters a little more micro. to address your points:
– likelihood of price correction: depends on which market you are in. In Perth I would say very unlikely as the market is still rising. I believe Sydney has dropped quite a bit,…[Read more]

are you lot still working up a lather? maybe we need a new forum – Statistics to Support Any Given Argument. Could be quite a database that is constructed.

Not sure what all the arguments are about – things really ARE different this time. the world economic situation is so dire and unmanageable (and I have the stats to prove this!) that property…[Read more]

“Regarding the state of the economy, if the outlook is rosy, why did the RBA hold interest rates?”

fair crack F – if they raised rates every month the economy was looking good they would be at 100% by now.

The chain of events you have predicted above has an incredible amount of ‘ifs’ in it. Any piece of that could easily come unstuck e.g. change…[Read more]

This doesn’t surprise me at all. In any market where the price goes up and the quality goes down the volume of demand will ease. I think the problem will get worse as labour and material rates keep heading up.

as for the smaller investor… there has been talk for some time now that an undersupply of new apartments in the pipeline may result in…[Read more]

had a half hour chat with a lawyer the other day, got a bill for $2500. rang to ask what it was for and she said she had no idea. then i got a message later saying that she had got a bit carried away and would knock $600 off. makes me feel much better. I would hate to see a lawyer if they were being paid a…[Read more]

speak your mind Mike! [blink]

for the record, IMO I think preoperty will continue to inflate over the long term as I can’t see why it would be “any different this time” – but then again I don’t subscribe to this theory that the world never changes. So theoretically the develop and hold concept SHOULD work.It is just counter to the theory (Buffet…[Read more]

I should qualify that last post – if you hold the property for the very long term I think the strategy would work. You just need tobe confident that you have the wil power and the belief that property will contnue to inflate as it has done in recent decades. (specifically the effect of the boomers on the property…[Read more]

If you have $93k of expenses and only $50k to call your own you are bankrupt!

The point being made is you can take $50k as cash, or leave it there as $93k cash and a debt of $93k secured against the property. The cashflow from subsequent developments funds the slight negative gearing on the earlier properties. My problem with this whole scenario…[Read more]

I would advise not rushing into another mistake… the biggest cost of property is getting into and out of it, now that you have paid to get in you may be better off holding for a good period of time and just following a standard negative geared investment pattern. If you really need the cashflow, perhaps find a property to offset…[Read more]

not having been to the class, can you explain why a problem with a property would give it a higher yield? I understand that the capital value would be lower because it has a problem, but wouldn’t this reflect in the rent? and if you do a reno won’t your yield become nil whilst you do it? then when you find a new tenant it will just be like any…[Read more]

yeh but most of us don’t mind a drop of the ol’ vino so we can’t really lecture them about that one! plus one drink won’t addict you, unlike say nicotine which I read is more addicitve than heroin?

http://www.megainvestments.com.au

Extensive list of ‘Off The Plan’ property available for sale in Perth.

John – 0419 198 856

they are a little dearer to develop as you have to run the drive right down to the back and put the drains in etc and they are a bit more awkward for the builder, but a $40k discount on the blcok sounds like you may be looking at something good. here’s so,e sales evidence for you to look thru:

Address Sale $ Date…[Read more]

you definitely need to do your own research as sales reps are just people with opinions at the end of the day. they could well be right that townhouses aren’t right for the area… some areas don’t lend themselves to the resale values that you need to get to justify the extra expense and construction for going to 2 storey. half of the public is…[Read more]

“I have been wondering how you would go about fighting BGC to finish a house”

good point!

given that a lot of the shortages were originally for bricks it may have helped, but brickies are in equally short supply. as are roof tilers, steel and just about every other tradesman and material, so perhaps it wouldn’t be…[Read more]

yes it is very common. you just buy the land as usual… put down the required deposit of say $1,000. then when you on-sell it you set the settlement date to be simultaneous with your purchase. you will have to pay the stamp duty so factor that into your calculations for your re-sell price.

http://www.megainvestments.com.au

Extensive list of ‘Off…[Read more]

the authors of that article and this article should get together:

http://www.theaustralian.news.com.au/common/story_page/0,5744,15052432%255E25658,00.html

http://www.megainvestments.com.au

Extensive list of ‘Off The Plan’ property available for sale in Perth.

John – 0419 198 856

maybe he’s telling the truth? either way it’s irrelevant to you…. don’t be rushed, do what’s right for you. there will be other properties.

http://www.megainvestments.com.au

Extensive list of ‘Off The Plan’ property available for sale in Perth.

John – 0419 198 856

Labor has never been a friend of business so it isn’t really a surprise. What is surprising is that Labor was voted back in in WA even after bashing us senseless with tax rises. And then under pressure from Costello to stop double taxing us Gallop has the nerve to speak on our behalf and say ‘WA will not bullied into this and that blah blah…[Read more]

an interesting mix of causes and symptoms you have listed there. I note the generous increases in personal tax rate scales which didn’t really create much of a stir – I was quite surprised to see the current and new scales.

I agree it could be different this time. just as it was in the great depression when guys were jumping out of the windows…[Read more]

Originally posted by dmichie:
Yes AUSPROP house prices never fall do they, except ummm Japan, and the UK, and …

You guys really do remind me of the dot com spin merchants of the late 1990s … “there’s no bubble because this is the ‘new economy’, old rules about fundamentals no longer apply”

interesting spin on things…. yours sounds like a…[Read more]