To do well in a slump you need big equity, as the loan to equity ratios drop.

Pre 91 you could borrow 95%, post 91 for the next few years 70% had 1% mortgage ins. and loans over 80% were very hard to find.(expensive)

Properties were also valued at around 10% less then comparable sales as they factored in further slides.

What will happen to the…[Read more]

If I put on a third storey do I then get a water view ?????

Sorry forgot to ask what’s the waterview like.

Newcastle, ….for 400K (including s/duty) sound like a steal to me.

Thanks wealth, yep the 1980s “when you could have floated a school bus on the ASX” (quote GB Nathan merchant banker).

Photocopier salesmen driving New Ferraris and living in Mosman (went broke in around 1991) for a few brief years reality just went on hold.

and I agree around 2010-2015 the baby boomers contracting their expenditure as they face…[Read more]

Originally posted by maxolau:
You used a solicitor in your purchase, didn’t you?

Wasn’t it his duty to make sure the financing is organised and inform you what interest you are paying and what the worse case scenario is!!! And it had to be in written!!!

I think quite a few solicitors would disagree about “organising finance” being the…[Read more]

Thanks Foundation

Originally posted by foundation:
So to clarify your above point, are we headed towards an upturn in social-conscience and consciousness? Or will something else have to break first?

Like all economics it is never concrete, but you are right greed should be followed by some sort of social freedom. Think it is seen in the Gen…[Read more]

The problem is not that they did not organise finance but that they manouvred their “client” into their preferred finance option.

The conversations would then have gone “We will do everything we can to get a better long term finance option, ” or ” I think I can get something better IF or When”.

If this is the case how can he have a case ????

If…[Read more]

Wealth, this Russian economist came to the conclusion that the major cycles are around 40-70 yrs and require the people who saw these mistakes to be out of the workforce decision making before the next arrives.

After these biggies the next cycles run something like

1/ Conservatism 1890s /1950s

2/ Social relevance / 1960 or the suffurgette…[Read more]

I am amazed at the responses here. Absolutley amazed.

We always have people talking about creative finance well can’t get more creative than this.

Unfortunatley the punitive interest would have been stated in the contract, can someone please explain how this is an ASIC matter (you have to be kidding… ) or fraud. Maybe Current Affair, but how…[Read more]

Originally posted by WinstonWolfe:

Many talk of cycles as if they are a cert.
However, rarely does one find analysis of cycles extending back into the 19th century. And continuity of cycles depends much on many economic and political variables remaining constant.

Foundation may be able to help me here but there was a significant Russian…[Read more]

I am a cynical watcher ( oh yes I have property, but not quite the ones in the usual box, a land bank and a commercial one high growth other high return) and have to agree.

My own son is doing exactly what the poster is doing as are many of his friends, also is canvassing work opportunities out of Sydney.

Agree that in any cycle shares or…[Read more]

Are you asking for an accountant who acknowledges these strategies or one who will lead you in these strategies ???

Foundation thank you.

Japan market peaked at 30k, tin late 80shink it is now around 15k.
US market peaked at 11.7k in I think 2000 made it all the way back 11.5k before getting profit takersdropping it again

Both of these followed exceptional booms, totally out of sync with rest of the world.

Kind of like the Sydney property market of a few…[Read more]

Were looking for a new residence last year and simply said “high sevens mid eights.”

Stupid agents tried to show us he latest listing, “was sold for 1.1 (owner builder so don’t know how he sold to himself but…) last year but rush in now blindly and you may get it for 990K..” Sold for 930K and I bet they regret it.

smart agent told us “was on…[Read more]

AND …. if plane or ships had never been invented he would be right.

Hmmm ….boom in 3 1/2 yrs you say ???

You need advice,

as you are a developer so they are not subject to GST, they are subject to TAX if the PPOR does not apply, also GST.

Lots of issues here.

Can make lots of money, make an investment and spend some money on advice.

Originally posted by Wylie:
I little less.

The house doubled in price twice over the 14 years – cost $54K in 1984 and we sold it for $208K in about 1998 I wish we still had it, but children and lifestyle have to fit in with our investing, so we made the hard decision to take the profit and sold it.

Ahhhhhh the 80’s, I remember my bosses…[Read more]

Originally posted by Dazzling:

Quote:

Negative gearing on a 3% gross yield really does look challenging from an accountanting perspective. [/b][/size=2][/navy]

Yep, sure does, opinon apprecated as always.

Foundation you keep forgetting that property doubles every 7 years, so in 20 years it will be one year short of a 800% increase no matter what the annual wage rate increase or inflation.

How can you loose ??????

That assumes that the rest of the world is stupid enough to keep loaning us money on no productive assets.

Sorry could’nt help…[Read more]