A lemming is an animal. Basically, people use the term as an insult for follower. Gee Yorker- you ain’t a lemming for buying CF+ properties, are ya? :+P

From dictionary.com:

lem·ming ( P ) Pronunciation Key (lmng) n.

Any of various small, thickset rodents, especially of the genus Lemmus, inhabiting northern regions and known for periodic m…[Read more]

Perhaps the lesson in this- and Ausprop just said it- is to keep the dogs… because in a few years time, they may become Best in Show )

Really, if people sell at a loss- a 10% loss on a 600k unit in docklands, for example + costs (could be around 70k), then they have made a loss. Sometimes it’s better to keep it and make a profit later.

kay henry

landburn

Steve McKnight the other evening, at his launch, referred to CoCR, and discussed market value as it relates to what you can do with that other money. So he was saying that you can work out your returns,m but to imagine the equity in the deal- and how you can make further returns on it. So you might be getting a 10% return on the 50k…[Read more]

In fact, Yorker, Steve made a comment at his launch the other night, that he had made far more money from capital gains, than from cashflow.

We can’t all buy 10%’ers, Yorker. Some of us wish to buy lifestyle places etc, and the rents are not 10%… hence, they are negative geared.

I find it weird when people refer to people who buy neg geared…[Read more]

Brett, what are you actually looking for? Sydney property ranges vastly in price, as you’d know.

Basically, if you buy cheaper properties- like out west, you’ll save some money on the price, but the rental amount can often be absolutely hopeless. Sydney is huge, and it all depends on your budget.

Basically, you have the eastern suburbs, which…[Read more]

prdnationwide,

The seminar thing will also depend on who you’re targeting. Some of what you’ve said in your posts are what other investors take for granted. But new people might find that info informative. If you’re looking t people who are already investing, they need to be able to know that you know more than hey do- otherwise, why would they…[Read more]

Derek, I think flatter IR’s and flatter prices is the ideal combo. Like 1997- affordable prices and affordable repayments. I think the thing about buying when IR’s are low, is that you pay back as much as you can before IR’s rise.

I don’t like buying on foreclosure conditions. I’d rather buy in bearish conditions, but not when people are really…[Read more]

Brett,

I’ve heard about this as a shares strategy- using the curves to purchase and sell… but for property? I think it would be a disaster to buy when IR’s reach their peak. Imagine buying when IR’s are 17%- you’d be likely to end up with negative equity- or, if you were imagining that RE would be out of dashoin if IR’s were so high that you…[Read more]

Bell’s first book was the 2nd RE book I read- after Somer’s. It was really one of the only books around at the time about RE. Bell’s book was written in 1999, and so it was related to pre-boom conditions really. My mortgage was so small, that the book really resonated with me. But paying a mortgage off in 5 years… she was really talking about…[Read more]

Doug, you said:

“I’ve wondered about laundries… could they be quiet little earners?”

The couple who own my local laundromat work 7am-7pm 7 days a week. I think they would work about 80 hours each week. I would suggest most laundromats don’t just have machines with noone working there- but they do ironing, and a bunch of other stuff.

I get all…[Read more]

Derek, it’s tearing away the carpet to expose the floorboards underneath, and then polishing them for a buff finish )

kay henry

Yes, I think we do what makes us feel good, but then again, I’m a hedonist :o)

I worked out last night that I spend an extra 20% of my income- over and above minimum payments- on investments, so I reckon I can spend the rest on what I like. I am hardly going to miss out on the things I enjoy in life, so that I can have a few extra bucks when I’m…[Read more]

Scotty,

Here’s some general info from Your Mortgage Mag. It’s quite useful:

http://www.yourmortgage.com.au/features/letters/index.cfm?story_id=31258

kay henry

LMI is basically like an entry duty (like an exit duty). I wouldn’t use it, but if you do, I would only use it for a property that appears to have potential for CG. If you’re paying 2% LMI, then that’s an extra 4k onto a 200k property. You’d want to have the opportunity to recoup that money in the deal. I don’t think LMI is suitable for vanilla…[Read more]

depreciator,

I don’t think it’s silly at all. I think we make money to do what we want to do- like have a better life. And if a fishing boat is what you want, then I think you’re “successful” because you’ve used RE to get what you want.

Enjoy the boat :o)

kay henry

kp,

I get my yield based upon purchase (cost) price. It’s not hard to find properties with this sort of yield. I wouldn’t use market value or possible resale price in any of my calculations, and I don’t use CoCR- I find that an artificial method.

kay henry

Mini, I recently bought an almost new (3 year old) apartment in sydney with a >6% return- they’re out there.

kay henry

Interesting article, Derek. The last seriously abusive guy who behaved like that in here, did get banned, but he sure caused a bit of grief during his stay.

kay henry

Pelican, I don’t see that anyone here has made this an ethical question. People are discussing the rights and responsibilities of the wrapper- as per the question. Noone mentioned wrongs or rights- people have been discussing the legalities of it.

kay henry

I agree kp, that there are wealthier people who do not manage finances- and some of these might be wrappers. The suggestion that wrappers are wealthy… well, I’ve seen different. I’ve seen wrappers borrowing from other investors to get into the deal. Some wrappers do have a job and get extra income and some don’t. Just because a person does not…[Read more]