I know quite a few people in Singapore and Hong Kong who are suffering from negative equity after their property markets collapsed.

The PPOR people aren’t too fussed. It’s their home, they made the calculations based on what they could afford so it doesn’t impact them too much.

Savvy Property investors were preparing themselves for it and…[Read more]

We use a Macquarie CMT for our Trust account.

Thanks Acey, I can live with that, but then surely we can apply the 7% figure to the 80k property as well.

I am more trying to understand why there is a difference in assumptions in SiS’s calculations between the two properties.

SiS, I am fairly new to this so please bear with me if my questions seem very basic.

You made an assumption of 7% annual growth compounding, that is an average over time but it’s a fair bet to assume that 7% growth per year over the next 2-4 years is optimistic. Factor it a 7% annual growth averaged out over the last 10 years and I think you’ll…[Read more]

I don’t think it’s unrealistic to believe a crash is coming. The last 2 years in particular has seen many illinformed people jumping into property solely on the basis of the media hype and keeping up with the Joneses. These are the same people that will react to the media hype of a supposed crash and try and jump out of the market. The serious…[Read more]

Settle down Monopoly. I was commenting on your choice of adjective when firing back at RussH. Next time I’ll just keep to myself as it seems anyone who posts disagreeing with yours results in a direct attack back, scattered with CAPITALISED words, which as we all know are coinsidered on the internet to be shouting.

As you yourself say many…[Read more]

Originally posted by Monopoly:
but to proclaim that these books are (ALL) USEFUL is ludicrous! They have elements of usefulness I am sure, but I would never advocate strict adherence to same.

Ludicrous is a very strong, and in my opion overly incorrect, word to use. Every book I have read regarding wealth and generating wealth has been useful.…[Read more]

Originally posted by Monopoly:
BUT….you said you purchased a property for 325,000 which will yield a 160p/w rent….even by my standards, that is TERRIBLE !!!! For that kind of money, I’d be looking at no less than 300 p/w rent.

Please explain…

Er, you added one to many 0 there Monopoly. He said he bought it for $32,500. Not $325,000.

I read Julia’s reply differently to yours. Owning a “Home” is a PPOR.

It’s a stretch to call an Investment Property a Home.

Thanks for the answers. I never realised these were purchased templates. While I will look into Buyer Beware, it won’t help much with this weekend’s house hunting. Doesn’t matter I guess, I’m pretty sure I won’t find something good enough to warrant an on the spot written offer.

I agree, you’re being the greedy one. You are still getting the same money that you agreed to sell it for. She would still be buying of you for what she agreed. The saving is stamp duty being paid to the state government. That’s not yours, that’s her saving.

I’m sure if you asked her to pay for the costs of breaking and rewriting the contract…[Read more]

If overseas transfer are a regular thing, open a Citibank Online account. Not only can you transfer anywhere overseas via the internet, and cheaper than most banks in Oz especially if the receiving bank is another Citibank, but you earn 5.40% interest.

I don’t think Carr can influence the decisions of the NZ gov so you’re way off base.

I’d also bet that the bulk of the politicians in government today are property investors as well.

I’m still unsure as to what these changes will mean. I sold up my two IPs last September betting on a market correction. These new taxes may or may not help.…[Read more]

Bought an off the plan 3 bd townhouse in Chadstone, 1998 for 179k. Rent returned between 230 – 250 pw. Sold last July for 325k.

Still wondering if selling was the right move. Time will tell.

Go with Citibank instead of ING. Citibank are no fees. Funds at call, BPAY and internet access.

And they offer 5.25%. They’ve been .25% higher than ING for a while now.

I had a friend in a similar situation. The advice he received was that he was in fact considered an “owner” of the joint deed with his family hence denying him of the FHOG.

Boy was he bummed that his parents used him as a way of minimising their taxes…..

How do you intend to get the (First Home Owners Grant) –7000 deduction if you are buying it to rent out ?

I use Citibank’s Online savings account. That’s been 5% for a while and is now 5.25%. Pretty much the same deal on fees and no interest penalties as ING.

Hi Terry,

I sold them after July 1st so the tax will hit me next year. Hopefully by then I get make the money work a bit.

Unfortunately I haven’t lived in the properties. I had plans of returning to Melbourne but Sydney is my new destination, that’s another reason why I sold them up.

Thanks for the mintgroup url.