Gee… sorry to hear your story, mate.

I’ve never been in your position nor know anybody who is. But theoretically these are the procedures (same for all banks, not ING specific):
– ING will claim the difference from LMI.
– If there is no LMI, or not enough from LMI they’ll come after you.
– They’ll talk to you, negotiate, try…[Read more]

Yea, you are right about the 3-5% pre tax cash flow.
Reason for that, I think, is because everybody can count and wants profit. So sellers want to get higher prices and they know rent is a factor in determining price. The buyers also think the same. So market consensus seems to settle at 3-5% above which, sellers will increase the price and below…[Read more]

Hiya,

Interesting topic. I do think about this as well. I think it signals that the economy is not doing well, possibly worse to come.

These are my thoughts:
In the short term, there will be more people who can buy properties,
In the short – medium term the possibility of losing one’s jobs are getting bigger.
So even if the people who buy…[Read more]

Terry, it is just good first impressions from 6 years ago. Cheers, Catts

Lack of cash flow in Oz?? With the interest rates coming down, I am now in positive gearing category.

Agree with subdividing (being a lot of work) and mining towns (risky).

3-5% pre-tax ceiling?? Seems like you know more than me. Would appreciate further info?

Ziv,

Australia is better for peace of mind.

1. Social issues is a factor when deciding which property to buy whether an IP or PPOR. Unfortunately London is quite unnerving at the moment.

London society is very protracted and I can feel escalating resentment from both the poor and middle class side. A lot of social issues, benefit / dole…[Read more]

Back in 2007 I spoke with a guy from MC. John Kofiotis seemed good.
We didn’t go with him back then, and thinking to do it this time round.

So no special reason other than good first impressions years ago.

Stenno,

Sorry, didn’t mean to discourage you. I am also looking around for stress free IPs and DHA does look attractive.
Though given the factors I mentioned above, I am having second thoughts.

On top of that, DHA is very powerful. Hence the peace of mind… but only when what DHA does goes our (investor) way. If somehow DHA’s interests diverge…[Read more]

Hi London,

Interesting thing you are trying to do there. So you are in HK, wanting to buy in London. So why asking on this forum? Seems odd.
So how do you know which area you want to buy in. Or are you planning to just trust the developer?

Having said that, I am an Oz currently living in London, wanting to buy in Oz. Have looked around in…[Read more]

I think that’s because of the premium the Ministry put on top of the market price.
The premium is because of the ‘sleeping soundly’ effect DHA provides.
So the price of ‘sleeping soundly’ is
1. the 16.5% management fee (compared with the 5% market rate),
2. the higher purchase price and
3. the long term contract. Meaning should you want to sell…[Read more]

Be nice guys… it's his money, his life. At least he's not on the dole, not costing us any money.

Sorry – hadn't read this far when posting my reply.  Sorry, Catts.

Your equity would be from the price increase.

So if I buy at $1 mil with a deposit of $200k, my equity is $200k
A year later I order a valuation and it is valued at $1.2mil, then my equity becomes $400k.
This assumes price increase. When market crashes you can end up with negative equity.

But I also share your scepticism. But my concern is more…[Read more]

Terry,

Interesting post there. Would be interested to know your reasons / thoughts.

I usually pay principal as well. This is because, at the end of my 25 mortgage I will be… well in my 60s or 70s (hate to give out my age.. lol).
So if by then my mortgage is not paid off, presumably no body is going to give me homeloan anymore because my work /…[Read more]

I did try to calculate as well, just to ensure the calculations are correct. Tried it a few times, seemed ok so I stopped counting. Do you guys check regularly?

Elisey, would be interested to know how you go, whether there is any mistake.

Thanks,
Catts

Sorry,  What's LMI?  Lenders Mortgage Insurance?

Thanks,
Catts

Hiya, I don't know much about Land Tax, but this is my 2cents worth:1. OSR does send valuation March – May but your property is only valued every other year or even longer depending on the zone. But definitely not gonna get the valuation notice every year. 2. OSR calculates your tax based on their valuation and a specific formula which includes…[Read more]

Thank you All for your interesting comments.Am pleasantly surprised that my retirement plan is one of the most detailed one around. I would've thought there would be more detailed ones as well. Totally agree with Derek that retirement is not just about 'Fishing and play golf'. So the way I see it, retirement is 2 things:1 Can fund the life you w…[Read more]

Josef,ATO will only approve your PAYG Tax Variation based on your previous year's tax return. if you did not get any tax return last year, you would not get any tax variation this year. That also means, if you used your IP as PPOR last year you wouldn't be able to claim your IP losses for this year's tax variation. Besides, the PAYG Tax Variation…[Read more]

My strategy / risk appetite:1. Risk averse – after all I am an accountant and work in a Bank. I understand the risks associated with Banking, gambling shares, etc. Hence, I like to see my wealth grow steadily though somewhat slow but I don't want to get short term shocks / sharp decreases.2. I like to have a lot of buffers – I like to have approx.…[Read more]