"can I claim the full amount of this loan regardless of what the funds are used for as this is the balance of the loan when I move out"No. The ATO would be all over you before you knew it.

GlenR, there are two possibilities:- the 11 second rule was once useful but is now broken and will never again work.- the 11 second rule always works, but the houses you're looking at are overvalued.My vote is for the second, but I understand that many others disagree.Cheers, F. [cowboy2]

rejoice wrote:
1. Begin to pay attention to what you're THINKING.2.You enternalize those thoughts and you create a FEELING. Make sure you're feeling good about everything you do.3. Those Feelings are expressed in ACTION. Pay attention to your actions. Do everything aswell as you can possibly do.4. RESULTS. Pay attention to your results. And…[Read more]

Yossarian wrote:
one cave dweller convinced another to trade his nice warm mammoth skin for a magic stick that would attract good looking cave-chicks.

a) Where can I get one?b) How much?c) If I believe in it it will work, right? The power of positive thinking? Therefore, it cannot be a scam and I cannot lose! Here, take my bearskin boots too.…[Read more]

LindaClaridge wrote:
If I'm wrong please correct me but I've always wondered why interest is never taken into account?Linda

Of course you're not wrong! You're just experiencing 'common sense' rationalism, and believe me, it ain't that common these days! This is exactly why I always tell first-time buyers:

Quote:
It looks like you’re s…[Read more]

stu_macca wrote:
Thanks. So it would be prudent to model using inflation?

Yes. Wage inflation specifically. If landlords collectively moved to raise rents in excess of wages over a number of years, they'd soon have empty properties while potential tenants became homeless. Clearly this would not work for either group. Therefore, rents will rise…[Read more]

Quote:
It will be of benefit to those struggling to enter the property market as its boosts their buying power by up to 25 per cent and that means higher capital gains than they would otherwise have.

What nonsense!They get 25% more capital gain, but in return they promise to give 40% of all their capital gain to the 'equity partner'!Without the…[Read more]

I think it's rubbish. The Active Topics used to work so well before with the options "Last 6 hours, last 12 hours, yesterday, last 3 days" etc. Now it's completely useless! Any chance that "Show all posts since:" option could be reinstated? And when I click on a topic it seems to always take me to page one. Not very efficient.The active topics…[Read more]

Oh, I forgot. That thread mentions an appeal – the case did indeed go before the supreme court and the original finding was upheld.

Qlds007 wrote:
Depending on the wording within the installment contract the contract is terminated and the deposit and all payments along the way are forfeited.

Yep, then the person who defaulted on the wrap retains a savvy lawyer to challenge the contract in court on the grounds of justness, and despite the contract having watertight wording,…[Read more]

wealth4life.com wrote:
I believe schools should be teaching …<snip>How much a car lease costs to a wage earner and how much that money could be worth in the future if better spent.

Ha. Yes, every time I see a P plater buy a new or near new 6 cylinder car… (When did they start doing this? Thirteen years ago, 'sweet wheels' meant anything…[Read more]

wealth4life.com wrote:
So who is to blame "the banks" or "greed"

Hi Wealth. I'm not the sort of person who needs to blame something or someone every time something goes 'wrong'. While all the evidence is that we're headed for stormy economic times, 'the economy' will be fine… in the end.On the individual level, I don't think there is/should…[Read more]

kellylock wrote:
Can someone explain to me why the strength of the dollar impacts on inflation…

It makes imported goods cheaper.If a good costs US$1.00 when AU$1.00 = US$1.00, the good costs AU$1.00.If the AU$ then strengthens to AU$1.00 = US$1.50, the same US$1.00 good costs AU$0.67.(Note, all values are examples for ease of…[Read more]

Originally posted by L.A Aussie:
Hey Julie;
I think you’ll find that if you purchase at auction it is unconditional (may differe in some states) with no cooling off period. Another reason why agents like them.
Not in Victoria! Nothing is binding until the contract is signed! Just the other day a story made the headlines of an auction ‘winner’…[Read more]

Originally posted by propertypower:
There is now speculation that US might drop their interest rate.

They still have plenty of inflation risks plus a precipitously balanced dollar. If they lower rates, the USD is toast, and the carry-trade, which currently supplies much of the liquidity holding up their financial markets, will disappear. I don’t…[Read more]

Of course, regardless of the plausibility of the debt growth required, there are also major mathematical dangers when projecting forward with historical rates of compound growth:
http://img442.imageshack.us/img442/3413/hpiassumptionsxv3.png

Glad to help, F. [cowboy2]

To danniellee,

Your entire post has shown that you do understand the fundamentals. This sums it up perfectly:
As the debt and interest payments are growing quicker than the growth of wages, it will come of a point where the amount of wages will not be sufficient to cover interest and debt repayment, after accounting for living expenses.
But it…[Read more]

For sure, renting will free up cashflow in most parts of the country, given that rental yields are so low. If I only had 2 choices – rent and buy an IP / buy a ppor and no IP, I’d choose the former.

As for selling the IP in question, have you considered how much money you’ll clear at sale? Factor in all costs, especially capital gains tax.

F. [cowboy2]

Originally posted by AUSPROP:
i dont get it – do I have to read back on the last 42 pages to do so?

why does it have to go up 13%? not all median house price increases have to be funded by debt… it only takes one house on the street to sell for an extra million dollars and you have created $200 miliion in value

Sigh.

No AUSPROP, you’ve…[Read more]

Originally posted by NATS12:
Michael Yardney needs a new calculator

Either that or Darwin has cracked the $685,000 mark!

Darwin’s median house price is now $385,000.
Adding 8 per cent per annum to this figure sees its value at $830,000 in 2016 and $8.36 million in 2036.
That’s from the ‘journalist’ – Ben Langford. It’s a disgrace, an absolute…[Read more]