Ahhh, well… 270 people have read this thread. Perhaps some people got something from it. If others don’t like it, comme ci, comme ca.

kay henry

emcdonald,

you can probably also sell your car if you have one. If you live near work and public transport… ya don’t really need a car (mine sits in its car cage and I barely use it, but I’m too much [inlove] with it to sell it

kay henry

emcdonald,

Ask your accountant/pay officer at work, to deduct $150/$200 per week from your pay (or whatever you can afford), and put it into a savings account for you.

I also used to make savings by still having HECS deducted, even after I had paid the debt off. Then at tax time, I’d just have a lump sum.

I too am a spender (but I like to think…[Read more]

What kind of work do you do, bennido?

kay henry

They don’t get to own the house while you are vendor financing it to them, until they refinance or pay the debt off. Niki, the house will still be in your name.

kay henry

Meggsy

You need to read about Jamie McIntyre’s methods of “make money while you sleep” hehe. Actually, maybe if you have trouble sleeping, you could do a night-shift job.

If you currently have assets, you could probably flog ’em off, and invest in other assets- if you own a home, you could sell it and buy some CF+ places or something. If you…[Read more]

cute, rogue…

It’s likely that any post that people disagree with, will be discredited by some. So a person saying that pozz gearing hasn’t been all they’d have liked it to be, will be called a fake.

I dunno whether the post is a fake or not- I used to think this place had so many plants saying how great positive gearing was, that pi.com was a…[Read more]

Peter said:

“Unusually sceptical from you Kay – oh well, to save you the effort of digging it out and reading it, here’s a direct quote from “Wealth Magic”

Sorry mate- I’d have to dig through to China- I’ve never read it :o) The imaginary friend thing- well, it was related to the comment above the one I said, but not related to you sp…[Read more]

Gurus and their imaginary friends… dear oh dear… I wish they’d just write “this book is a parable” instead of the ruse. Khouri didn’t get away with it- perhaps RE investors don’t care so much.

kay henry

There are reasons to buy apartments. One is that they’re usually cheaper than houses, so they provide an entry to the market- it depends on where they are located, of course- a sydney apartment will cost maybe 10 times more than a rural house. Another is that some people choose apartment living over house living. There is an article in a recent…[Read more]

Ko_Starr,

People work out what they’re comfortable with. My first place was a 5-minute drive from where I lived, but it didn’t mean it was any more low maintenance than my place 1000 km’s away. I use property managers, so I have a hands-off approach. I think one reason people balk at buying places at a distance is because they feel that they…[Read more]

A comment on negative gearing. I think it’s as unreliable as positive gearing, to some extent. I went to visit an old stomping ground today… cheap 60’s red brick unit for 235k renting at $165- that’s a little over a 3% yield. Knowing that area like the back of my hand, I doubt there will be much of a price rise for that and similar units… so…[Read more]

bellboy,

You also have to get permission from the BC if you are gonna tear down walls and stuff in a unit :o)

kay henry

bellboy- heya )

I have only units, but I think most people on here might tell you that houses are the way to go.

The theory is that houses or units- whatever is on the land- is a depreciating asset, whereas the land is an appreciating asset. Market variations have often found this to be the case. One thing I would say though is… depends on…[Read more]

Henry,

I bet many of us on this board bought our first IP’s for less than 100k- I know I did, but the property market was very different then. The thing about buying a cheaper property is there is more room for contingencies. If your income changes or you decide to do other things, a 100k property won’t bog you down forever. Having said that, the…[Read more]

Yorker,

Obviously there are oversupplied areas of units- b-grade apartments that havde few differentiating qualities, that will suffer more than traditional housing stock in areas close to the city.

I am not sure why you are asking this question, given that you are the Chief Researcher of a major player in the RE market. Are you wanting our…[Read more]

The lazy person’s rule is: Price of the property, then double it for rental yield…

50k prop = $100 rent a week
100k prop = $200 rent a week. etc etc

That’s my way, and it doesn’t exactly = the 10.4% thing, but it’s close. It also take me 1 second, so I have 10 more seconds to sit and do this: [tired]

There are 10.4% yielding properties…[Read more]

I’m thinking along the same lines as G7. Remember, when you wrap, you own the property- NOT the wrappee- until the wrappee pays it off, whenever that might be. They might refinance in a few years, so then you’ll be paying the CGT.

As a wrapper, you own the house, and act as a banker/financier.

kay henry

No Marc, I am part of the herd. I think inside my square. I’m always up for a good lynchin’.

kay henry

Terry said:

“Just remember if the income your declare is not high enough to pass serviceability, then the loan will be declined. ie you still must be able to service the loan on your income (declared).

The ATO has threatened to use this declared income as your taxable income, so bear this in mind!!!”

Well, Terry, this seems to make sense. If…[Read more]