dare_to_dream,

If the gov’t reduces the FHOG from $7,000 to $0, prices in the FTBer range will fall by around 7%. If your FTBer house is also PI-fodder, perhaps less.

I’m all for buying a PPOR. I think it’s a great idea, providing you can pay it off easily. If you can knock the loan back to zero in 10 years, that’s good, you’ve saved some money…[Read more]

Originally posted by TriggerL:
Is it too late for us or should we perhaps wait a little longer to see what the market is doing in the new year.

It’s never too late. All markets are ‘mean-reverting’. The Adelaide housing market is currently a long way above its long-term mean valuation by any measure – income/wages / rental yield etc. I believe…[Read more]

Funny maths ahead:
“make a net after tax profit of about $50k (it’s probably more, but let’s be conservative).
My cash-on-cash return per year for my $1000 is $2500 per year. That’s a return of 250% per year for 20 years.”

Turning $1,000 into $50,000 in 20 years is actually an annual return of 21.6%, not 250%. 250% per year would turn $1000 in to…[Read more]

“Lastly, I wasn’t prescribing a course of action for the author of the thread. Merely having him think a little bigger than the mentality of paying out a debt completely then buying another property. That action will limit him to 2-4 IPs in his lifetime. Perhaps less.”

One more question I would like you to answer directly. Do you believe that…[Read more]

Originally posted by Mortgage Hunter:
If history has taught me anything it is that I need to beware people who tell me that “This time it is different.”. Experience tells me that it rarely is.

So… If you expect history to repeat itself in regards to nominal house prices, surely you are advising your ‘wealthy clients’ that they should expect…[Read more]

Originally posted by Terryw:
You will have up to 6 years in which you can continue to claim the first one as your main residence and not pay CGT if you sell. I guess what all this boils down to is, after up to 6 years you can decide to sell one and not pay CGT.
If you are considering this, remember to get a couple of ‘proper’ valuations done on…[Read more]

In 20 years the debt will be negligible. A pretty big assumption there. On what do you base this claim?

18 years ago I bought a property for $52K. I see you’ve answered my question. You’re expecting the past to mirror the future…
Fair enough, so we can expect interest rates over the coming 30 years to mirror interest rates over the past 30…[Read more]

Originally posted by wealth4life.com:
I know lets go get a 106% home loan i know lots of brokers who push that product (just to get a fat commission)

Do these products generally come with a trailing commission that lasts for as long as the balance is negative? I’d reckon it would be hard to refinance, so that would add to the attractiveness from…[Read more]

Inflation/ higher rates are good for investors anyway. It means house prices are going up but your level of debt ain’t!

Another popular PI myth I’m afraid. Yes, there is a connection between higher (general goods) inflation and higher interest rates, but the link between high inflation and rising house prices is dependant on wages rising in line…[Read more]

Originally posted by celeste:
I pretty sure you can list it as education on your return, I have, lodged my return, the accountant did not say no, they all went thru
I’m pretty sure that education expenses must be related to your employment – so I always thought that unless your business is investing (with all that entails), the answer would be…[Read more]

Hi again Drac,

Good luck with the looming HSC / end of school – one of the defining moments in life, though not usually for the reasons indoctrinated by the schooling system. I hope it goes well, and if it doesn’t it really isn’t the end of the world. Trust me, I know what I’m talking about. [blink]

As for your money-making plans, don’t f…[Read more]

Casey Serin is becoming famous for having just such infinite wisdom:

I’m a 24-year-old aspiring real estate investor from Sacramento CA. After going to few seminars I bought 8 houses in 8 months across 4 states with no money down. I fixed and sold 2 and then ran out of cash. I am now facing foreclosure on 6 5 houses. I’m learning my lessons,…[Read more]

Originally posted by DraconisV:
Or should I ignore his statements and talk to my GF more privately first about this so that she does not build up doubts that will be created by an uneducated(in property) onlooker.

Ahhh, the infinite wisdom of youth! [biggrin]

Hey, remember back in 1990 when… oh, I guess not. Did you consider that his…[Read more]

Originally posted by Sargeant:
Houses from the $220,000 to $300,000 are constantly selling in My area.

In my region (country Vic), houses are still selling well in the $175k – $225k range. Interestingly, some of these houses were last sold in the $225 – $275k range, or first advertised thereabouts.

Some in the higher range have not been reduced,…[Read more]

Quote:
Originally posted by gmh454:
This weekend the Tele the faithful mag of the greater west, ran a cover storey and two pager on the new home buyers (with plasma…..they just had to get that in ) who are approaching charities for aid. made the radio news late saturday, and tv sunday night./quote]

Yes, this one:
Article Link

I’ve just…[Read more]

Originally posted by Bo_D_:
From 87 on to 06 property has only had 2 years of backward growth (91 & 05) both following what appears to be a boom.

Two small points
1- ‘wealth illusion’ is the inability or unwillingness to adjust nominal prices for changes in the value of currency (you forgot to adjust for inflation). Inflation adjusted, ther…[Read more]

Originally posted by foundation:

Quote:
Originally posted by celeste:
As you stated above the value is not set until you have a buyer.
Q: Therefore ‘mortgage equity withdrawal’ is…

Counting your chickens before they hatch?
Securing real debt against unknown house values?
An incredibly simple way to encourage a self-referencing spiral of…[Read more]

Originally posted by as41:
WHAT NEW RULES!!!!
[inlove]

You’ve pretty much always been allowed to build sheds/carports less than 10m square. Bear in mind, that’s not big enough for a single car garage.

Refer to “Building (Interim) Regulations 2005”, schedule 8, which states:

Description of building or building work exempted from building permit…[Read more]

Originally posted by celeste:
Hi all

I am the bookkeeper here, so here is the correct math.

end result 2 houses worth 750k with a debt of 500k better off by 250k

…riiight, that may be how it works in the real world, but we’re in property investing land now! You now have 4 identical houses, 2 ‘worth’ $250k and 2 ‘worth’ $500k…

How woul…[Read more]

Originally posted by Bo_D_:
dont u mean 750k in debt each?

Ah, not at all.

My Debt = 500k + 500k to buy ctaing’s house. Her debt then = $0. She buys one of my houses for $500k, so we’re both back in hock to the tune of $500k!

Magic!

F.[cowboy2]