If you are talking about the enquiry done by the Reserve Bank, then it was released a couple of weeks ago.

In it, it basically says that the current property boom is being driven by investors in a way not really seen in Australia, or any other part of the world, before.

The increased spending is not in line with the increased purchasing power…[Read more]

The 11 Second Solution is just a rule of thumb to help identify potentially +ve cash flow properties quickly.

Your COCR will depend on how much you actually borrow, the repayments on that loan, rates, insurance, management fees, etc.

Checking the COCR is part of what some people here call “due dilligence”, ie use the 11 second solution to…[Read more]

As stated by Jimbo James, the Reserve Bank quite clearly believes that investors are driving the property bubble, in a manner that is unsustainable and at odds with economic realities.

No one can predict how far prices will fall once the bubble bursts.

IMO for anyone trying to start investing, buying a property now could have serious…[Read more]

“Women,
Can’t live with ’em,
Pass the beer nuts.”

Norm – Cheers.

Dino

“If you don’t know where you are going, every road will take you there.”

Sorry, maybe I’m missing the point, but doesn’t that mean these would have been the best places to buy in the last year, not the best places to buy now?

Not one of these is in a capital city, the areas which filled the top 10 for the past several years.

What does this mean. Regional areas are catching up with the cities.

If cities are set to…[Read more]

In my opinion.

If you are tossing up between renting and buying from a purely financial point of view then I say buy.

Find a home where an interest only loan will be the equivalent of what ever you are prepared to pay in rent, plus expenses if you want to include them.

Buy it and live there.

Save your money to buy further investments or what…[Read more]

Sorry, I just couldn’t bite my tongue any longer.

“People are poor because they choose to be poor”

“I worked hard at school, so I deserve to earn more money than some one who didn’t”

What a load of crap!

Most people are poor because they don’t know how, and don’t have the skills to be anything different, and have no real reason to change. Yes…[Read more]

Ksafik,

Invest – to commit money to earn a financial reward.

I think the important thing for you to do first is create a budget and stick to it.

If you live with your parents and pay no rent, you should be able to save money, no matter what your income.

If you can’t, then that means you will always struggle to create wealth.

Steve’s book…[Read more]

I live in an area that was listed as a “hot spot” on one of the major news services.

I put a house on the market and sold it in 2 hours! (Did I sell it too cheap?)

Thing is, my friendly real estate agent told me a local bank manager was expecting a slow down very soon in our area.

Why?

Two months ago he had 15+ loan applications on his desk…[Read more]

The bible is also fairly forthcoming on loaning money for interest.

Leviticus 25:37
You shall not lend him your money at interest, nor give him your food for profit.

Deuteronomy 23:19
“You shall not charge interest on loans to your brother, interest on money, interest on food, interest on anything that is lent for interest.

Psalm 15
1 O LORD,…[Read more]

TV does influence public opinion. For years it has been telling us there is a property boom, not just in the news, but through the multitude of life style and real estate programs on air.

TV may not have started the boom, but it has certainly thrown a lot of fuel on the fire.

Now it is suggesting that the boom may be over. Rates are rising,…[Read more]

Well I got 68.

Does that make me the biggest 80’s loser?

And I have a Commodore 128, ’cause it’s twice as good as the 64.

Now, can some one please tell me how to stop the theme to “Greatest American Hero” playing in my head?

Dino

“If you don’t know where you are going, every road will take you there.”

Sorry, forgot to mention in reply to the original email.

Yes the 11 second rule only applies where interest rates are substantially below 10%, since it only represents a gross income of 10% of the loan value.

If interest rates rise to 8% or more than you will have substantially less of your gross income to cover all other expenses.

Dino

“If…[Read more]

11 second rule.

Divide the estimated weekly rent by 2 and then multiply by 1000 to give a purchase price that should be cash flow positive.

eg Est rent = $200/wk
divided by 2 = $100
multiply by 1000 = $100,000

This gives you a 10% return on the purchase price.

ie allowing for 2 weeks vacancy per year
$200/wk x 50wks = $10,000
$10,000/$100,000…[Read more]

Is it just me, or are the judges trying to throw the result in Guy’s favour, and IMO deservedly so?

He is in a different class than the other two, and last night proved it once again.

The judge’s can see it, the studio audience obviously see it, every one I speak to see’s it, yet he almost got ousted last week.

Cossima’s phone bill must be…[Read more]

For my money, it’s still out of the top three pre tournament favourites, New Zealand, England, and Australia, and as much as I hate to say it, in that order. These three will win on the weekend. (NZ v SA, Eng v Wales, and Aus v Scots)

France and Ireland is the other game. For my money, Ireland to make the QF. I’ve watched their past two matches,…[Read more]

People have asked – what’s in it for Bill?

I don’t really know, but I would like to relay the following story. This really happened to me, and it has changed my life for the better, even if only in a small way.

Ten years ago, I was backpacking through Europe. A friend and I decided to take a bicycle tour for the day, and met another guy on the…[Read more]

Why do people think interest rates will rise?

Ok, they’re not going to stay low forever, but what indicates they will rise any time soon?

My feeling is that as the recent increases in the dollar begins to adversely effect business growth, and the current account deficit, the presure will be to keep interst rates low to prevent a recession.

This…[Read more]

Only 1,000-1,500 out of 3,000 having full time employment from this project. What does such a number really mean?

Using the ABS figures for the last census, 18.5% of employment in the local Gladstone area is in Manufacture. It is generally considered that most other employment, particularly in areas such as Gladstone, is provided by the…[Read more]

I am not a religious man but do firmly believe in God.

From Steve “The Bible is clear that you cannot serve two masters, and that you must choose between serving God and serving money.”

At the moment I work for money. That makes me it’s servant.

I want my money to work for me. That makes me it’s master.

By this logic, and this is what I…[Read more]