interesting point Alf – affordability has a huge impact on the market. you only have to look at larger cities like London and NY where so much of the population live in apartments. the aussie ‘dream’ of the 1/4 acre block is a 1950’s fantasy that will slowly fade as the reality of population pressures increase. in the meantime, if you can afford…[Read more]

grim! but then what is a valuation worth really? just have a talk to the valuer and I am sure they’ll bump it up $20k for you. Talk really nice and they may bump it up $100k. A house is only worth what someone will pay for it – and you can’t possibly predict who will walk through your front door when you put it on the market.

Extensive list of…[Read more]

I have heard the problem arises in the mortgage security… Yankee Doodle Mortgages doesn’t want to have to come down to Bourke in order to foreclose you to get their money back, hence I doubt they would do it. If it is possible, someone please correct me as I would be keen to explore it. Maybe we need to start a thread in the Finance…[Read more]

hey Westan – you just snuck that reply in before me! glad to see we pretty much concur.

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

John – 0419 198 856

The later – capital gains receive more favourable tax treatment, plus the benefit of the compounding value of the asset (unless you are dedicated enough to reinvest all your income, in which case what would you invest in and why bother – why not just pick the other in the first place?). However if I was starving and looking for my next dollar, or…[Read more]

John are you referring to the BIS Shrapnel report that forecasts rates hitting 10% in 2008, inflation, recession before recovery in 2010? Its a very interesting scenario they have laid out.

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

John – 0419 198 856

its never happened with any of my deals, but my preferred broker tells me it can and does happen. I know many of my clients need to get their finance ‘refreshed’ on OTP deals that drag on longer than expected as the approval is often only for 3 months. If they pulled finance on you I don’t think you would have any legal recourse – the fine print…[Read more]

yes but (playing devil’s advocate here) is growth just another term for dead equity? you can only realise the gain by selling and being slugged with tax, or borrowing against it. Equity for equity’s sake is a fruitless pursuit, not unlike the desire to own your PPOR outright.

Extensive list of ‘Off The Plan’ property available for sale in…[Read more]

I think Kristine’s point was that you can have a written offer for finance approval from a bank and so the contract becomes unconditional, then at any time the bank can just change its mind and withdraw the offer e.g. the bank discovers you lose your job the day before settlement and withdraws its offer for finance. You can never be certain of…[Read more]

yeh hey we’ve all been duped. I was in Perth on holidays once looking at top end property and wandered off track a bit, found a home open that appeared great value (a private sale I should add). The bank approved finance no problems and I engaged all the experts I could think of at that time, engineers etc. So I thought all was cool, then I found…[Read more]

plus if you add rent then you have to deduct the income that you are earned from the otherwise dead equity in your house – and you would probably be negative then!

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

John – 0419 198 856

OH! I didn’t realise Anita Bell was the author… it all comes together now! yes, its like “now dont have a shower today, use the money saved from the water to pay off your mortgage – presto, one step closer”

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

John – 0419 198 856

real estate – over regulated and will continue to be more so. over supplied with agents… its a tough gig. at least selling cars has set hours!

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

John – 0419 198 856

interest rates probably have peaked, so I think it’s a shocking strategy. Your entry and exit costs would more than exceed any small gain you may potentially make.

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

John – 0419 198 856

I haven’t heard of them so could be good or bad. things to look out for though: what is the property management fee? how much extra are you paying in either (a) the purchase price or (b) the management fee in order to get the rent guarantee. If you decide to proceed and get to the point of having selected a property, satisfy yourself that the…[Read more]

hey who has read that book ‘How to pay off your mortgage in x years’ – cant recall the x… 5 years, 12 months, 10 minutes, something? If you want a miserable existence then be sure to pick up a copy. You would be better off paying the $20 into your mortgage though.

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

John -…[Read more]

I’ve got my eyes on the new Mercedes SLK, that could be another IP. Question is – whats more exciting? You only live once…

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

John – 0419 198 856

correct Jo – qualified by saying that if you are in the business of renovating / developing then no CGT applies and all gains are considered normal income. Usually ‘being in the business of’ would mean your second one – depending on which accountant you speak to.

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

John – 0419 198 856

classic example: an old lady bought an apartment around the corner from me a few years ago paying well over the market. the agent was telling me ‘oh she doesnt care she is going to live her days out there forever’. well I see the For Sale sign up last week – either she’s had a turn for the worse or she’s changed her mind, but the property won’t be…[Read more]

will it be your PPOR ?

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

John – 0419 198 856