WaySolid,

Steve asked me to do two things as Moderator: remove ads and posts I found to be personally offensive… it’s a pretty short job description… as far as doing it, the advertisers do a thousand of these when you remove the ads: [angry2][angry2][angry2] and have a fit. As to the second bit, what is personally offensive to one person is…[Read more]

If your husband is still in bankruptcy, would it be legal for him to acquire a loan?

kay henry

kp said:

“rent vs market price, hence 3% being more in the order for a capital city.”

I don’t know who is getting 3% or on what kind of property in, say sydney, but in the market I know, 6% – based on weekly rental : purchase price, is easily achievable. I think if people are buying now and getting only 3%, they could do much much better.

Rents…[Read more]

Tough Deal,

I look more at rental yields in sydney than price. Fact is, if you are looking at inner-city/inner-ring suburbs, rents can be significant in dollar terms. The cheaper the property… the higher the yield. Why I am looking at yields is because I think CG will be slow at best for the next couple of years…and possibly negative in…[Read more]

Terry,

The loss in value/price has certainly been documented… but I am in an area where there is a lot of building right now, and new 1-bedders are still sold for 350k-400k. Too exxy for me [blush2]

No, Tough- I don’t want a 2-bedder with a car park, thanks… I find my own properties

kay henry

Here’s an email on the topic that I got sent last week- it’s doing the rounds. I think some of you may enjoy it- it’s cute )

kay henry

____________

The bottom of the class war

September 16, 2004

MY dear Mr Latham,

I understand you’ve eschewed crudity since defeating that lovely Kim Beazley chap, but absit invidia, you are a beastly, beastly…[Read more]

Tough Deal,

400k will get you at least half the 2-bedroom units in Sydney, I reckon. My preference is inner west and the Eastern suburbs- due to population density, basically. I’m not into the north shore- I find it a bit bland, and I generally prefer to invest in places which reflect me and my lifestyle… it’s just a preference thing.

kay henry

Regan,

Deciding what to do depends on your circumstances. If you’re working, you can make all kinds of decisions. If you’re happy to live at home with your folks, then it sounds like a PPOR isn’t a priority for you right now.

It’s great you want to invest early… but I don’t have the “live lean” philosophy. I have always had a car- since I had…[Read more]

Thanks westan I’m not sure a 15% return is so good given that it’s after a 20% deposit (mind you, it’s far better than what I get!) On sales price, that would be like around 12% yes? Oops, I just edited this… I wanted to say, I mean the yield is not so good… because you are buying for yield rather than growth properties (even though these…[Read more]

redwing, I haven’t been able to find any link between Neil Jenman and Brian Tracy. My knowledge of Jenman is that he doesn’t give a toss about any guru.

LifeX, if you go to http://www.briantracy.com you can read about the myriad of books Tracy has written. He’s a self-development guy, lifecoach etc etc…

I like this though:

Brian Tracy Online…[Read more]

Is Henry Kay here? *pokes him*

Isabelle, I made the comment because I was saying it is not really a competition as to how many houses one buys. A person could have a million dollar house in Sydney (I don’t) and be happy to buy another million dollar house. Their wealth would be just as much as someone who might buy 30 positively geared houses. In…[Read more]

geo,

Interesting that you say we “need” shares. Why do we need them? I know multiple streams of income is a term used by some gurus… but why isn’t it enough for people to have an income, say, from a salary or property? Why do we need to also have vending machines, or a home internet marketing business? Not sure I understand the logic.

kay henry

westan,

Do you calculate CoCR on a 20% deposit? I don’t use CoCR- it’s too variable- it could be done on a 10%, 20%, 30% or more deposit… so when people talk about it, to me, I am never sure how much deposit people have put in.

As for me, 7.5% gross on purchase price is the next IP I have in mind.. plus depreciation should push gross % up…[Read more]

Hey Mr_D (cute avatar, by the way),

I don’t think people necessarily need to worry about increased IR’s. I think you’re right in that a slight rise in IR’s (they’re thought to only rise by .25% some time this year) might change the status of CF+… but does it really matter whether your property *makes* $20 or loses $20? It’s such a small amount,…[Read more]

Yep, Rosebery is not pretty. It is marginally prettier than the lunar landscape of queenstown, which is a terribly sad place :o(

As for talking up places… well, I can think of half a dozen forumites whose every post pretty much related to squawking about their own preferred buying area- from what you’d hear, these places are all picturesque…[Read more]

Well, Marc, given that to become a doctor, lawyer or vet, it requires a TER of around 99.4… then I don’t agree that you can throw money at students and have them get these kind of marks. They either have it or they don’t.

kay henry

greggs,

It’s good that you’re not htinking of LMI. CoCR is one thing… but when you look at interest on LMI… well, you still have to pay it back.

A friend of mine bought a property on 5% deposit and paid $8000 LMI. A complete waste of money, I think. Her property has not gained substantially, and now she has to pay back that 8k. OPM is…[Read more]

sis,

I think you’re right about the perception of schoolkids- some thinking they are better than others. Even in my mother’s innocent days… she said children used to say to other kids, “Catholics, Catholics, ring the bell… publics, publics, go to hell.” hehe. It’s silly, but is indicative of how kids can distinguish between each other.

I…[Read more]

kp,

Rents are high in the urban centre of sydney, and with depreciation, 7% is achievable.

I personally don;t care if negative gearing rules change- more money perhaps put into public housing as a result? But the exit duty didn’t result in a commitment to more public housing by the State, so perhaps the money from the abolition of negative…[Read more]

Ben,

The developers on this site will probably be able to give you a generalised answer to this. Maybe you could just ask in the Development section, how much it would have cost to build a unit/house 10 years ago in a particular area and see what they come up with.

And you’re right about not getting a depreciation schedule before you purchase-…[Read more]