Originally posted by foundation:
Oh dear, one of my pet hates – the investment clock!
Why? Because every investment clock I have ever seen is either broken or has been broken! The very concept requires that the primary variable is time, with every event on the clock being intrinsically linked to a previous one…

1) The London School of Eco…[Read more]

Would it not be that part of the role of government is to provide a roof over everyone’s head? Property investors reduce the burden on the Government and therefore the burden on all Australians and the economy. My philosophy is property investors are providing a service.

The increase in property prices is not just from property investors…[Read more]

Remember any loan interest on your IP’s, is tax deductible and this must be taken into account when determining the best investment for your $150k.

The disadvantage of paying these loans off is that if you required money at a later date for personal reasons, any re-financing would not be deductible.

I would suggest you first look at any non…[Read more]

I agree Jo (Monopoly), it is not how much money you earn but what you do with it when you get it.

When I was in London in the late 80’s I saw many traders, merchant bankers, computer programmers etc etc earning phenomenal money as employees and just blowing it – sports cars, overseas trips, expensive restaurants, gadgets and even gambling. For…[Read more]

Michael,

I agree with your comments.

I guess if you built and sold a large block of $250k apartments in an area where the median is $500k then the median has to come down.

I would like to see evidence of houses in Belgrave South being purchased in 2003 for $457k and then sold for $268k in 2004 – you can’t blame that on interest rates can…[Read more]

Originally posted by byronent:
why would half the rent go too tax?

Because Hugo owns the property outright, there is no deductible interest, only the basic outgoings and depreciation. Hence the bulk of the rent will be taxable at the appropriate tax rate.

Any loan to purchase another property to live in cannot be offset against the income of…[Read more]

An interesting article!

Oil to hit $80?
A supply disruption could send crude prices to $80 a barrel, according to OPEC’s Secretary-General.
March 3, 2005: 7:22 AM EST

KUWAIT (Reuters) – Oil prices may temporarily spike to $80 a barrel during the next two years if there is a major supply disruption, OPEC’s Acting Secretary-General, Adnan…[Read more]

Superman,
The article provides good info on what drives values, reference to capital city analysis, geographic differences, methods of assessing fair value, differentiation between owner-occupiers and owner-investors etc etc.

It is good reading but I noticed it was dated 19 November 2002

Cheers
Jeff

I thought the oil crisis was in the 70’s. The sharemarket crash was Oct 87 and property followed that. Those were the days of excessiveness, fraud, insider trading, receiverships, redundancies, bankruptcies etc etc.

I was buying all through that time. Prices went up, came down and went up again – as long as the cashflow was coming in it didn’t…[Read more]

Originally posted by foundation:

And conversely a lower demand, as those houses are now homes to ex-renters.

Once again, if the flood of additional ‘investors’ didn’t have an impact on rents, why would an exodus?

Cheers, F.[cowboy2]

Home buyers are not all ex renters so it is not necessarily directly proportionate.

If the flood of investors…[Read more]

Originally posted by foundation:
On the supply/demand issue,
Oil prices are factored into CPI, and can therefore influence wages. However, the price of oil is set by the market – higher demand = higher price.

When OPEC cuts production or the war in Iraq reduces supplies then market forces are being directly influenced – lower supply = higher…[Read more]

In less than 18 months NZ has had about 6 increases in the Official Cash Rate (presently 6.5%) however, a large percentage of mortgages are fixed due to the discrepancy between fixed and variable rates. There has also been competition between banks for a bigger slice of the mortgage market and some good 2 year fixed deals have been had. It’s worth…[Read more]

Brad Sugars is the author of “Billionaire in Training” among others. His business is Action International which is basically business coaching and mentoring. He’s managed to franchise it out around the world and by all accounts is pretty successful.

Cheers
Jeff

Originally posted by pgrim:
Hi
Not sure if this is the right place to ask b ut what is “Xcol” when talking about finance.
Thanks

Sounds like “cross collateralisation” meaning more than one property being offered as security for one loan. Not too sure

Jeff

Brenda, that’s a good strategy. While downsizing your overall portfolio you are increasing your equity and your cashflow at the same time.

I tend to sell off any non performing assets first and retain the income producing ones. In 2003 I sold my beach house because I wasn’t using it very often and very little income was being derived from it. I…[Read more]

What sort of development are you doing Mini – residential or commercial, single unit or multi?

I’ve got a dirty great hunk of land I have to do something with so I’ll be interested in a few progress reports.

Cheers
Jeff

I assume your property for sale is in ‘NZ.

Have a look at http://www.homesell.co.nz and http://www.privatesale.co.nz

I have not used either so cannot tell you anymore than this.

Hope this is of some help

Cheers
Jeff

OSienna, you are pretty much right with your figures so I guess on that basis you’d be stupid to sell the property. In my example I was referring to increased equity through leverage only and not assuming one would sell in which case yes, you would have to take into account the exit costs. While a tenant is slowly paying the mortgage you may as…[Read more]

Originally posted by OSienna:

Is this some kind of voodoo maths or have I missed something?

10% deposit on $100K property is $10K
10% increase in property value = $110K
10% of $110K = $11K

How did you get the figure of $20K?

If you put down $10k on a property of $100k you need a loan of $90k

Property value increases to $110k, deduct loan of…[Read more]

Originally posted by brahms:
zippys, most commercial property can be purchased on a 30% deposit

This was my understanding also, without using cross collateralisation of other properties or creative financing.

In a previous thread however, Simon believes it is possible to get upto 95% on commercial property. You should possibly contact him…[Read more]