Hi Budgy, I was interested to read your post as one of my co-workers told me this week that she would like to start investing but can't do so until the (3) kids are off her hands. I didn't stop to try and convince her otherwise as I've come to the opinion that if you you want it enough, you will find a way. To make my point  let's use me and my co-worker as an example.  Similar age, both have 3 kids. We both earn about the same money. Her hubby workers full-time, my wife works 2 days per week.  She says that at the end of every month, every cent they earn has been spent to either pay their morgage, bills or fund life style. Thankfully my  situation is a little different. Our family can save an average $2000 per month, from the money we earn as employees. In addition to this, (using last financial years figures) we had investment income of $4,500 per month. Our outgoings (interest, land tax, repairs etc) to earn this$4,500 per month were $1750 per month. We only started investing 5 years ago. The 5 years prior to this we did everything we could to pay down the morgage on the house we built 10 years ago. I might add that all of our 3 children have been born in the last 10 years and my wife didn't work for a whole year following the birth of each. Our investments are a mix of property and managed funds. From my experience, yes it is possible. Then again, my co-worker may tell otherwise???? All the best

Hallg

LA Aussie your comments about the present high demand for housing appear to be correct. Was having a chat to a sales manager for one of the local project builders today when he called at my place to pick up his son who had stayed over night (when do the school holidays end!!!). Asked him how things were travelling at work and expected to hear something like “boy these interest rate rises are making it tough”. Instead he told me that December was their biggest month ever. I’m sure that things must slow a little sooner or later due to a range of economic reasons but there is still this apparently inescapable reality that more housing is required in many part of Aust. In the same conversation he told me that they have recently lifted their average house price by $3000 due to increased costs. I would have thought these increased costs for new homes also helps to underpin the value of existing houses (if not increase them).

Hallg

Housing affordability was mentioned more than once by Mr Rudd as an issue in this election. Must confess i cannot recall what his solutions were? Could we see alterations to tax law such as depreciation rates and CGT?? I guess time will tell.

Hallg

For me the main issue here is “how will the current climate conditions impact the economics of an area?” I live in central Vic and like most places water is a big issue around here. Yes they have just connected places like Bendigo and Ballarat to a ” Super pipe” but the pipe is only any good if there is water to run through it?? From what I see there is no certainity of this going forward!! At some point this lack of certainity must have an impact as those within Industry and with dollars to invest, are unlikely to choose this area. If it was my money I’m certain I ‘d look else where. Present industries are finding it tough enough. In the past couple of weeks over 100 people around here have lost their jobs due to the lack of rain.And I’m sure there are others that have not been in the media. Apple growers in the Harcourt Valley are trying to keep their trees alive and productive on 30% of their entitlements. I could mention many other examples. I hope I’m wrong but areas with issues such as these may not be the best places to buy an IP???

Hallg

Hi Millions, I would buy in Bendigo Vic if any where, but my post was more a theoritical question. In my own way I was trying to say that house prices in most areas really can’t fall (crash) very far because the cost of producing them has risen considerably over tha past few years. I read some comments suggesting doom and gloom (I assume that means large drops in property prices) but i pose the question, if the cost of building the average house is, let’s say $250,000, that means that when no one is willing to offer $250,000 for the average house, production will cease. These basic economics therefore put some type of floor under the value of exist house stock? Sorry if I’m not explaining myself very well.

Hallg

Hi Tools, I know a couple of the guys at Curnow Dyett real estate (03 54430733) are valuers. I don’t know how many real estate agents are certified valuers, but I would think that a valuer who actually sells property would have a pretty good perspective on things. Other this, Woodland valuers are spoken well of.

Hallg

Hi Longroad, I don’t have precise numbers but Bendigo has experienced good population growth over the past few year. About 2000 per annum I think. One thing I see on the upside is the completion of the freeway to Melb. Final stage is now well under way. I was talking to a business consultant the other day who moved to Bendigo from Sydney. Time wise he is now closer to the airport than what he was living in metro Sydney and it will only improve once the road is finished. On the business front the big success story is the Bendigo Bank. This has been great for employment in the town.There was also big hope that mining would return to its glory days but this does not now look likley. Yes water is an issue but I think the impact of the dry conditions on the rural sector in the region is a bigger one.

Hallg

Hi Orien, here are a couple of names that I hold in good regard.
1) Jason Westcott ph 0409951012
2) Wings Properties ph 03 54461699 (speak to Mark Kemp)

If none of these can help, they may suggest some one who can. Both are a good honest businesses who will try and do the right thing by you.

Hallg

Hi Wayne, no residential investments other than PPOR. Have managed funds & shares that have done well. I’m on the look out for my next commercial property but i would prefer to have a tenat lined up before I make the move. In my job I get the opportunity to interact with Managers of businesses and often I quiz them on their current & future accommodation requirements. Currently I have 3 different businesses who have invited me to present them with optiions. The trick with this is to get the timing right as my option will need to marry up with the end of their leases. One owns his site so that’s a little easier as he said he would lease out his current premises if and when I can provide him an option that suits.

Hallg

Hi wayne, yes I own one Commercial property which is in a business zone. Business zone here means office/retail. Don’t have a Commercial zone here so don’t know what is permitted in such zones?
Don’t use a Property Manager but that’s only because everything fell into place (finding a tenant and the like) when I purchased the property. Have a great tenant but if they leave at the end of their current lease I think I would more than likely use one.

Hallg