The article seems to be implying that a self administered super fund investing in some properties by rolling over funds from another fund amounts to unauthorised access (if I am reading this correctly), which is rubbish. The adminstrator of the fund (normally yourself) can choose to invest in many things including property but not things like…[Read more]

This topic has changed a bit but I feel it is important to let you know that as a builder previously, I know that builders do make different margins. These are anything from loosing money on a job to making 30-40%. This often depends on the size of the builder and the bigger builders dont take on small jobs or jobs with too many unknowns and…[Read more]

pieces
I thought that predict and project both mean the same thing – that is to forecast? I also dont know how you can insist that by using data to predict one gets “locked into one mindset”? I totally disagree and would argue that this data and the predictions are only a small part of the information and decision making process and predictions do…[Read more]

rickyw
Of course you don’t need a degree to invest in property. There are too many examples of people with very little formal education that have made huge money. These people have educated themselves over time by trial and error and just getting in and experiencing. This certainly does work, probably better than any economics degree.

I have an e…[Read more]

markpatrick
Your statement “there must be times when you take a chance on certain aspects of a purchase” is exactly the type of statement I would expect from one of those people that are not prepared to do all the steps in a system and don’t want to pay anything for knowledge and as such “want it all” without doing the hard work.

Elves
I also a…[Read more]

Henry Kaye will probably still be worth more millions than all of us put together after this whole debacle is over. He is no idiot and he saw an opportunity in the market and took it. He used investor’s greed gland to the maximum and he cannot be blamed for that. Investors that got greedy only have themselves to blame because greed has a funny w…[Read more]

Leigh
Just a small point which is quite significant in the whole argument.

Your example “somewhere that has increased in 40% over 12 months and then decreases by 20% surely couldn’t be classed as a bust because the net effect is still a 20% increase.”

This is in fact incorrect. The correct statement should read ”somewhere that has incre…[Read more]

Westan
yeah sure we may not have seen corrections in the range that I am tipping between now and 1989 (too small a sample anyway – imo), but we also have not seen the type of frenzied buying and the much bigger resultant boom that has happened in the last 8 years. The market will always return to equilibrium and at the moment it is very much out…[Read more]

btw – my opinion of a bust is when prices drop by more than 10%. If one buys well, one can easily handle a drop of 10% especially if it is over a few years. But when drops of 15-20% occur this is likely to start affecting the yield as rents start to decline accordingly even though the rent to selling price relationship is not one that tracks in a…[Read more]

What qualifies as a bust? Does 10% qualify or does it need to approach 20% before it is termed a bust?

Others input would be appreciated.

Westan
The stats you have shown may apply to the whole of Melbourne and for particular timeframes. Please understand that nature of statistics is that with the correct subset of data one can probably show any effect or justify any argument one likes. I like stats but feel thaw without a good volume of data over a prolonged time, one doesn’t get a…[Read more]

I know for a fact that the ATO take special interest in transactions which are not at arms length like paying a family member for services. This can attract attention but if it can be justified, well explained and backed up by evidence and be reiterated by tenants then it would probably be allowed.

The question is do you want to attract the…[Read more]

Apparently they are getting back together again and looking for a place in Brisbane (southside near where I live).

I couldnt help myself![:p]

Tim
Byron Bay has exploded in terms of prices and this makes any form of IP generally very CF -ve (which is not a good thing). Along with this it would seem that prices may have hit their peak and a decent CG in this town may be very hard to achieve in the next 5 years unless you can pick up a property at well below market value somehow!

MortgageHunter
What rental niche are these units filling and what is the price?

rcenrig
No I was not meaning 25% less than similar properties in another location but rather in that location. In other words, unless you can get this property well below the market value, I would forget it. Dont compare what you can buy in Brisbane with this deal because this property is not in Brisbane. This is the same old mistake that people…[Read more]

rcenrig
The price you pay needs to be about 25% less than the average for the same sort of property for you to be buying with a fair degree of safety, imo. If not, I think you need to be willing to consider if you can subsidise for quite some time and wait for the peak of the next boom (7-8 years) before you will realise a good CG. I believe that…[Read more]

Hi CarLover
I agree with westan that it is a worldwide phenomenon and that Aussies have a love affair with the beach. Many city slickers do sell up their $800K semi in Syd. or Melb. and buy a coastal property for $500K and think they have biught a bargain. At this point I would depart from westans proposal that the trend will continue. I think…[Read more]

I think that any property that over the long term (which is my strategy – buy and hold) has a good potential to be rented out(low vacancy) and a reasonable return which is largely dependent on what you pay for it, is a good property to consider. I personally find it extremely difficult to believe that some small rural towns will not be heavily…[Read more]

sunshine, please explain further what you meant by “apartments I have seen there cheap were almost ‘unsellable'” – please give some reasons.
Thanks