Yack
It all depends on whether the economy is strong or weak. If it is strong then I predict interest rates to increase to about a max. of 9-10%. If it is weak then the RBA will have to stimulate it and in those circumstances the rates will only get to about 8% before again reducing down to where they are now. All of this is dependent on the world…[Read more]

All booms are always followed by a bust. This has never not happened in history. To think that property will suddenly defy this rule is totally naive. The extent of the bust and the timing are the only things up for debate really.

+ve IP will also be affected by the cycle and prices will decline when there is a bust. Too many factors affect rent…[Read more]

8 years of 15-20% CG’s p.a. which are 10-15% above the long-term trend should mean a very large correction is required. The above translates into 160% increase in prices over this period or 120% higher than the long-term trend. In order to return to a normal CG situation, prices would need to at least halve. I dont expect price to halve though but…[Read more]

The way I see it, as an investor I am out there to do the best for myself not others. In a real estate boom (like now), you are likely to always pay too much when buying. I always ensure that I pay a low enough price to ensure that if I need to get out of the property quickly then I will not suffer too much of a knock. This practice mandates the…[Read more]

Hi Sharon and welcome
You are too right about business being a bigger jail than being an employee. Doing either does to some extent mean you are diversifying and not totally relying on +ve CF IP which is what most on this forum do.

I would suggest you start your search for a +ve CF IP as a starting point. You can do this like so many others by…[Read more]

If your PPOR has a mortgage with redraw facility (not much chance it doesnt) then I would wack the $150K into that and wait for the right deal whenever that was to come up. That way you are saving 6%pa after tax and have cash on hand to buy whenever you want to. I personally prefer to buy IP near where I live (Bris.) and thus cannot find too many…[Read more]

darrylsgirl
-ve CF properties can only be bought up to a point where your bank feels you can afford to subsidise these properties whereas +ve CF properties can in effect be purchased ad infinitum.
The deal you mention above sounds like one which you should hold onto as it will assist your equity position and you will not have any problem financing…[Read more]

kay

If someone is stupid enough to pay $400K for a place that is only worth $300K then why should a fair price not be $300K? These idiots must pay for their greed!

I personally am prepared to buy whatever is good value and do not consider other peoples misery at all. One must remove all emotion from the deal! You may want to call me a capitalist…[Read more]

Hi Alwayslearning

I tend to agree in part with you about QLD growing whilst Syd, Melb go through a correction. I do however not totally believe that people are swarming to QLD and that the rate of Baby Boomer migration will increase much more strongly than in the past. Lets face it, are people able to stop working sooner these days? Probably not,…[Read more]

Stoph
I have used O’REILLY LILLICRAP in Brisbane with good success. They charge a bit more than the cheap conveyancers but I had no problem with them and in fact found them to be proactive and very professional.

I am interested in the $295 + costs offer from Conveyancing Works. Has anyone used them?

Some markets (like Melbourne) have an “Auction Culture” and this is bread by the RE industry. I agree with u9026a that it is not always the best way to sell as it often excludes many buyers which cannot be a good thing for the price. In general agents will recommend an auction where they are not able to easily arrive at a realistic value for the…[Read more]

As with most on this forum, I am always looking but have not found very much in the last 2 years that deserves to be bought. Right now must be the worst time to buy. Rates should rise again in December and if rates continue to increase next year by about 2% then there will be some people who will have to sell and they will probably have fierce…[Read more]

Talking of how the Tax System does little to encourage people to save for their own retirement. This is also true of the current talk about taking away -gearing by the RB. Many people now prefer to invest in property for their retirement instead of equity markets. Take away -gearing and suddenly you have a whole lot of people who wont have enough…[Read more]

key henry – Re your statement “Let the infidels leave, I say”

It sounds like you need to be the one leaving. Try a stint in Afghanistan, Iran, Cuba or North Korea where there are a lot fewer “infidels” and let us know how you like it!

Just remember, Australia is a free, capitalist (infidel) and democratic society. I would put it to you that it…[Read more]

The only fair tax system is one which charges people exactly the same rate no matter how much they earn or what gender they are or if they are single, married etc. If the tax rate was the same for all people then every person would pay the same proportion of their income as someone who earned less. Earn more pay more…The incentive to earn more…[Read more]

kay henry-lol, i do have IP and will still continue to invest in property and agree with your process and being fair. I just dont think that now is a great time to buy in general as those properties with good locations are overpriced. Having said that, there are always going to be good buys in any market conditions, just less right now. When the…[Read more]

Well here we go again!

Of course the cycle has to have a downturn and of course you know you shouldn’t have bought that last place at such a ridiculous price. You did your sums and worked out it was really worth 25-30% less than they were asking, but you still couldn’t help yourself! Oh well, that is called greed and fear. You feared that you wou…[Read more]

Anyone have the name of a good QS or Dep. Specialist in Brisbane that will do as mentioned above?

I fully agree with Bill, what you are suggesting is totally dishonest and should not be encouraged or entertained on this forum.

Do your homework and when you are absolutely sure that the deal is good for you then make an offer that you are comfortable with. If you do this then it is unlikely that a better deal will come along in 7 days! Buying…[Read more]

The culture that has been allowed to grow in Australia such that tenants rights are being protected at the expense of landlord’s rights is very unhealthy.

It is also very wrong to look to the government to regulate things like blacklists. By and large these blacklists do a job and do it fairly well. Sure there are cases where agents are unfair, b…[Read more]