Hi Tysonboss. Don't forget that correlation does not imply causation and that even if a causal relationship exists, its direction of influence may be unknown. So, could it be that world demand for oil slowed sharply when prices passed a certain threshold? A casual observation also shows that the sudden escalation in price occurred several years…[Read more]

You want to know the secret?….Yeah baby, set the controls for 1997. Shweeet!Or just buy when house prices are cheap and rents high, as opposed to today with expensive houses and cheap rents. Cheers, F. [cowboy2]

JL, you are a capitalist! Your best retort might be "That's right. What are you, a Marxist?"

JL wrote:
I guess I just need to vent because I have been called a capitalist for purchasing more property.

Is it just me or is that big font ugly and horrible to read?Why do you take offence at being called a 'capitalist'?Forget about the phrase "affordable" for a moment. I think it's inaccurate and causes problems in a discussion such as…[Read more]

AngB,What if this plan makes your mother worse off in retirement, or worse, unable to afford to retire?

virgininvestor wrote:
Hey everyoneThanks so much for the input, I did not expect all the responses so quick and professional. Who needs accountants, lawyers, planners when I have you guys!!

Just don't take anything here as gospel! I know you were just being complementary, but it's best to leave matters of law to the lawyers and matters of…[Read more]

Daedalus wrote:
It comes down to your risk profile and your investment strategy. Note that the x-axis is in years, not months.

But which one would have suit a high risk profile investor? Which option carries the highest risk? Sure, I've charted years, but it doesn't matter – the net position is always in favour of the P&I investor. The only…[Read more]

Daedalus wrote:
Nice graphs F,Also, there's a lot of accumulated cash flow between those two curves – at least $50/week. If you compound that quarterly at 4% over the 25 years you end up with $111,921 in cash.

Much more than that actually. But wouldn't it be easier to chuck it into the loan for 8.5% compounding (minus the lost tax refund) than…[Read more]

virgininvestor wrote:
Hi everyone,I know the rent will increase over the years but how investors make them positive or neutral if they use investment only loans? repayments on 300k are about $500p/w. I can't see either of these properties gaining that for a long time. My goal is to buy and hold for at least min 10-15 years. Is there investors…[Read more]

Hi Snowflake. Others here are better qualified to answer the more technical parts of your question. My advice would be to first clarify your goals and construct a plan to achieve them in the most direct way. Then work out what obstacles you have and how best to negate or avoid them. You seem worried about cashflow especially with the planned…[Read more]

Has anybody checked interest rates yet to see how far they've gone up under Labor?http://www.news.com.au/business/story/0,23636,22860188-31037,00.htmlTut-tut. Bloody Labor! ;-PAt least he's trying:http://www.news.com.au/business/story/0,23636,22859974-31037,00.html

From TIC website- – – – – – – – – –I believe we are in the middle of a crisis that is being ignored by the Reserve Bank. On the one hand we have, for instance, the National Australia Bank reporting a 17.7% jump in cash earnings to $4.4billion. This is all money coming out of your pocket or if you are running a business, it is coming out of your…[Read more]

Holy crud. Anybody want a giggle? Read the links here:http://www.tic.com.au/interest+rates.aspxHe doesn't have the foggiest idea of what he's talking about. And 'Kevin's Blog' here:http://www.tic.com.au/kevin's+blog.aspxis full of 'Kevin's thoughts' (curiously posted by one Derek Jones) that are just as inane and… well, wrong!Far out. It's slick…[Read more]

dreaming wrote:
We might be headed for a rates cut depending on what pans out?http://www.compareshares.com.au/woods4.php

Thanks for the link. They're a bit blinded by popular rhetoric: The Resources Boom is said to be the stimulus to spending that is driving the RBA into raising interest rates. But as that stimulus wanes that spur to spending…[Read more]

regina wrote:
thanks thysonboss, yes I am working on my share portfolio and understand all that.I believe we are in for a rough time, rampant inflation is starting to happen and will accelerate due to numerous issues.Unionism is already rearing it's head, interest rates can easily go back to double digit figures.

I'm a little uncertain how this…[Read more]

I don't know! My challenge to you DraconisV – call your nearest State Revenue Office and ask them. Take a few notes and get back to us here. It would be interesting to hear their response. I'd imagine (Note: IANAL) that if you bought it with no intention of living in it you'd be committing fraud, but it would be next to impossible for them to…[Read more]

Rus D wrote:
By "cheat the system" I mean the system of working 40 hours per week until you're 65 and then getting less than $300 per week to live on.If you're here, then you probably don't like that system either. I've used property investing as a vehicle to have financial freedom while I'm still youngish.

Not sure I'm following…[Read more]

That's not the point. If you were under the eye of ASIC, the kind of baseless promises you're making would be against the law.Cheers, F. [cowboy2]

RusDavey wrote:
With their help, I now have about $1.7M worth of residential properties in WA, ACT, NSW and QLD.I'm now semi-retired and I can still afford another half a million dollar property, which I'm getting soon.All this on a very average income as a self employed tradesman.

Quote:
About us: We currently have 6 properties and we don't…[Read more]

So do you still believe in regards to the relationship between house prices and rents, that "it may not be a direct correlation however it is closer than any relationship between wages, cpi and rent"?