Thankyou comrade StalinI share your frustrations with politicians however, in order for a society to function, someone has to make rules to abide by so we can all get along. There has to be ways of negotiating disagreements as we don't all believe the same things or share the same visions. Someone also has to build roads, public utilities,…[Read more]

If it costs roughly $200K to build a basic 3-4 bedroom home and anything from $150-$200K for a small suburban block, can houses really fall below the cost of building them? I expect 5-10% is certainly possible but can they really halve in price? I suppose if the cost of the land itself decreases this is possible.I have been to a few property…[Read more]

Subdivision can still be lucrative despite up front costs. You need to do research on what you can sell the land parcels for as the final product. Is it worth the pus and pain? If you will make a motza, go for it

1. Sell properties/assets that were unlikely to experience growth in value. I would probably offload them prior to interest rates getting this high. Monitoring the economy is important. If you are positively geared, you may be OK anyway. Increase the rent2. Hold. A decrease in value is only a problem if you need to sell3. Interesting. I would…[Read more]

I guess it is really a long term investment. It isn't an asset as it takes money out of my pocket. It's the opportunity cost of what else I could do with the money. I checked on one of those interest calculators. I will pay about $700K in interest. It's cheaper to go for a holiday there a few times a year.I personally believe there would be some…[Read more]

I like the analogy with the hole. I think it would be smart to stop digging. It's a shitter when you like the real estate

My guess is that Perth has had its boom. With the downturn in the economy and high interest rates, the Perth property market will flatline or recede slightly (10-15%?) over the next couple of years. Pure speculation but that seems to be the general consensus

Qlds007 wrote:
Depending on the numbers might be a case for considering selling your existing PPOR into a Trust structure and borrowing 100% of the current valuation and then using the entire net amount raised for your new PPOR.Because the purpose of the loan is for investment 100% of the interest is deductible. Depending on the purchase price…[Read more]

Edvico_kvn wrote:
Hi Chis,The Tax Legislation looks at the "purpose" of the loan taken out. Because you will be drawing out a loan for the purpose of purchasing your "home" (and not to purchase/renovate an investment property), the interest on this loan wil not be tax deductible.Your rent will be considered income and you will be positively…[Read more]

Can you buy it in Australia or do you need to go to the richdad web site?

ormeau wrote:
At the end of the day our economies are based on exponential growth, unfortunately the minority understand that the world is a finite area of habitable and sustainable limits on population growth. The laws of physics tell us that we are on a massive course of global correction for the dominant species. Has anyone here ever…[Read more]

I was hoping for graphs over the past 50 years to compare price trends with respect to the economy. The best I can find is over the past 1-5 years when the house prices have gone up. The shizen has hit the fan and is about to get worse

Continue to offerReality will bite them soon

This has been the fear of generations. As a child and for the last two decades I have heard people say…………."I'm waiting till house prices come down". Not smart. However, I see your point. There are some different circumstances surrounding property now. A worldwide downturn. An overheated Australian market where the buyers wages have been…[Read more]

It's probably good advice to observe the market for a while.I accept nobody can read the future and it's fascinating to read the differences of opinion from people involved in the industry. I posted it for peoples interest, not because I believe any view in particular. There was consistent gloom for 1-2 years with only the magnitude varying.Then…[Read more]

1. With $100 K and a bearish market you could possibly buy a positive cashflow property as an investment and stay at home. Haggle hard on the price. $100K deposit. 2. Depending on your salary, put $50K down on two investment properties to negative gear.Stay at home and buy IP'sYou could really set yourself up well. Buying a property for yourself…[Read more]

It depends on your attitude to risk1. Conservative. Sell it, and save the repayment drain from interest payments but perhaps make a loss when considering interest paid , stamp duties and possible capital loss2. Moderately conservative. Park it and take the pain until you can afford to build. Will lose money on interest but may be able to make a…[Read more]

Roads and earthworks are ridiculous. You need to crunch the numbers. Costs of development + CGT after sales………….are you in front? Allow interest on loans during development. Are you still in front? If not, don't do it

Event Horizon wrote:
chat2howieI have a 80yr old 60yr old and 120yr properties and i still get back substancial tax on depreciation, you cant generalise that its not worth depreciating becuase its 20yrs old, there is cutains, flooring, appliances any building work relating to maintainance, plant, fittings fixtures etc etc, you would be suprised…[Read more]