Forum Replies Created
Thanks for than Mini. If you read back through my posts, you’ll find that I was not having a go at anyone, whereas DD is happy to attack me personally not my messages.
Sure DD’s ‘projections’ may show one thing, but mine show another – thousands of small time ‘investors’ getting royally screwed by unscrupulous developers, mortgage brokers, financial planners, property sourcing agents, real estate agents etc. to the point of personal insolvency, relationship breakdowns, depression and in the worst cases suicide.
My posts in this thread have no potential to benefit me personally, whereas DDs clearly do. What’s more, he wears his financial planner certification not just as a badge but as though it somehow adds weight to his claims (as well as for advertising?). A good friend of mine is also licensed. It took 3 weeks of part time study once RPL had been used. He is very careful about disclosing this, as ASIC is rather particular about advisors giving personal advice. I repeat, DD should either remove references to his qualifications or qualify any personal advice he gives with the standard, ASIC dictated disclaimers. But hey, I’m no law expert.
Regards, F.[cowboy2]
“The power of accurate observation is frequently called cynicism but those who have not got it.”
. – George Bernard ShawOops, despite my best efforts to remain courteous, I appear to have touched a nerve. Thanks for the advice about my head. I’ll go do that now.
Cheers, F.[cowboy2]
Oh, and the word is ‘fertilise’, and it’s entirely appropriate.(Top post Steve M^!)
Hi WWJD,
I agree with most of the comments above, and would like to add a couple. If you can afford to buy a house outright, and still have reserves or the ability to save for further investments, there should be nothing stopping you.
As this is probably not the case, I would suggest you give serious consideration to the price you are prepared to pay for a PPOR. The difference between buying something cheaper and paying it off over 10-15 years and stretching until you can’t afford to make significant additional payments over 30 years is enormous.For example 2 couples, both with a maximum weekly accomodation budget of $320 are buying PPORs. The first couple buys:
$150k over 15 years
$312 p/w repayment
$93,000 total interest paymentsThe second couple buys:
$205k over 30 years
$317 p/w repayment
$289,000 total interest payments
both scenarios assume constant 7.07% IR.After 15 years the first couple have finished paying off their PPOR and start saving or investing their $312p/w.
After 30 years, the second couple has paid off their house, spending a total of $494k.
Meanwhile the first couple have paid off their house for $243k and also invested a further $243k (or at 6% compounding, $395k).Which would you rather be?
On a personal note, a few years back my partner & I were told by a mortgage broker that we could borrow $720k to buy a PPOR on a combined pre-tax income of less than 2k per week. The interest rate was 4.99% at the time…[blink] Only time (or a couple more IR rises) will tell how many suckers took them up on the offer!
Cheers, F.[cowboy2]
PS – If my numbers don’t add up, blame infochoice.com. I’m too tired to do the calcs myself!Ask again on http://www.singingpig.co.uk
Cheers, F.[cowboy2]I can’t see any call for them myself. What would be the proportion of interest payments to capital over 40 years![blink]
I guess the credit card brigade might think it was a good deal though!Commercial I take it Dazzling? What type of commercial property was it if I may ask?
No offense DD, but you wouldn’t have a vested interest in talking up Logan ‘townhouse’ investment? How many are you holding for the long term? How many are you flipping for a quick buck?
Can you please provide a link illustrating the ” Projections on the townhouse and unit market has them averaging $157k by december”?
I also think it would be prudent to remove your PS146 certification claims if you are going to be giving advice on internet forums (either that or clarify each post with the fairly standard ‘not specific advice… may not suit… investors should consider their specific needs’ etc for arse covering purposes).
How long did that course take BTW?
Cheers, F.I am not advocating city pacific, merely pointing out that its an option which is there to be explored, that’s all.That’s fine BigJobs, nothing personal..
but this:they now offer 9%is misleading. Nowhere in the PDS will you find an offer of 9% profit return on your investment. In fact, read the fine print and you find:
Neither the Public Trustee of Queensland, City Pacific Limited (‘City Pacific’), nor their associates or directors, guarantee the success of this investment, the repayment of capital or any particular rate of return.The 9% you speak of is the most recent return, and the PDS points out (as it is legally bound) that:
Past performance is not a guide to future performance and returns can change.So not exactly an offer of 9% on 12 months fixed terms.
Don’t get me wrong, I’m all for speculating, I just like people to be aware of their risks.
Cheers, F.[cowboy2]Thanks Michael. I guess that proves that ‘value’ depends on your perspective![biggrin]
Our greatest weakness lies in giving up. The most certain way to succeed is to always try something one more time.Like heroin for example. Or flying without a parachute.
Sorry Calvin, I couldn’t stop myself!
…I doubt [edited as a possible breach of religious vilification laws] by the end of the week…[blink]
… just before they start going up again![biggrin]
Stay tuned Padmaa, I’ll let you know.I bought realestate.com.au shares last year. They have mnore than doubles in value in 6 months, which beats any managed fund by miles!I was going to thank you for the heads up and start shorting REA, but I notice they’ve fallen from a high of $2.20 on 10/02 to $1.40 today. I guess I’m too late!
Cheers, F.[cowboy2]Foundation, “to sell now will require vendors in most areas to accept lower offers than they could have expected a year or two ago” – Wouldn’t that mean NOW is the time to buy?Why buy when prices have started falling? Would it not be better to buy when they have finished falling?
Cheers, F.[cowboy2]Oshen – Cheers mate, you’re welcome!
Det – use the “Quote” button.
Cheers, F.[cowboy2]Sure Scremin,
That underlined blue word at the top of my last post is the link. The article is from Today Tonight[blink], but the investigation is from BRW.
Cheers, F.[cowboy2]Originally posted by JackHu:I have read Robert Allen’s nothing down for the 90s.
The new edition for Nothing down is out, and I am considering buying it too.
Sorry, I haven’t read it yet. I don’t suppose you know where I might be able to get a copy?
Cheers, F.[cowboy2]One step at a time then. Sell your PPOR before you even consider an IP, otherwise you could unwittingly find yourself holding that $600k of debt.
Cheers, F.[cowboy2]Hi Newstart,
Do you plan to sell your current PPOR, leaving you with $250k debt (on the 2 new properties) or keep it – resulting in 3 properties and $600k of debt? I’m guession the former, as IO payments on the latter will exceed you net income.From the latest Property Investing Newsletter:
if you’re using a buy and hold strategy on the basis that your profits will be derived from the property market returning to the boom times of a few years ago then you’re making a fundamental error of judgement because you’re investing for a market that doesn’t exist at the moment.I agree. In the long term, the very best return you can expect from residential real estate investment is a little less than 2% above inflation. Given that HPI is currently 30-40% above this long term trend in most parts of Aus, a correction of some sort is inevitable before boom times can return.
Given the recent unheralded price boom, it is not unreasonable to have a period of 7 to 10 years of flat property values prices while affordability catches up and sentiment changes again. This is a long time to hold loss making or marginal real estate.Even flat house prices in a high inflation environment result in a loss of real capital. What about a moderate drop in value followed by 5 or more years of zero growth? How would negative equity affect your peace of mind, your relationships, ability to take advantage of investment opportunities, ability to accept a lucrative job offer requiring a move…
it would make sense to evaluate your real estate portfolio on the basis that interest rates were (say) 2% higher. If, at this higher rate, it is no longer affordable for you to own the property then perhaps you should consider selling it in today’s lower interest rate market where it will be easier to sell compared with down the track when rates are higher.It’s almost as if Steve’s been listening in to advice I’ve been giving my friends & family for the last 18 months. Unfortunately, to sell now will require vendors in most areas to accept lower offers than they could have expected a year or two ago. To begin a property investing career now, particularly of the magnitude suggested by Padmaa is utterly reckless.
To those who will inevitably jump up and down crying ‘it’s different in SEQ/WA!’, I’d suggest you lock away at least some of your gains while you can, otherwise you’ll find that rather than being 18 months ahead, you’re actually just 18 months behind the rest of the country.
Oh, and heaven help the ‘investors’ who are still buying remote or regional houses.
Cheers, F.[cowboy2]
