hehe! Missing deadlines- ahh, yes- I know it well. So do you get in trouble when you miss a deadline? Or do they say “oh, that’s just Stuart- he can’t help it.”

kay henry

I think it’s often a matter of affordability in rent. Generally, community housing organisations have said that 30% of income is ok not to put tenants into “stress” when paying rent (or mortgage). If a benefit pays about $200 a week, then I guess it depends on how much we are charging tenants for rent. If we are charging them $150, then obviously they are going to find it hard to pay rent and live. If a person is earning $1000 a week (net) and we are charging them $300 a week rent, then they are going to be under less stress to pay- just on the pure numbers, but if we charge anyone a high % of their income, they will struggle.

If landlords charge unemployed people huge rents, then they can end up homeless- just so we can add on that extra % to our cashflow.

And yeah, diclem, some people are bad tenants or disorganised. I know for me, I get my rent taken out electronically, because I am never organised enough to pay it.

kay henry

Stuart, I’m [offtopic] here, but I see you’re online, so… thanks for your article on managing debt in API mag. It’s a very good read

kay hnry

Md,

Look at some of Margaret Lomas’ books. She buys newer properties and uses depreciation to make properties CF+. I was just readingf an article on CF+ property in API magazine. It says that properties only need to have a yield of about 6% to be CF+. Go figure… but depreciation on newer (post 1985/87) properties help to get the yield up by getting the money back in your tax as an offset.

kay henry

westan,

Interestingly, in article on CF+ property in the last API magazine, a CF investor said he would ensure he got yields of 20% when there was no real opportunity for CG (tested over a 10-year period).

MadCat, sorry to advertise API here :o) but if you buy it, you can see rental yields ofr all towns and cities in Australia, and there is a percentage done of yields over the past ten years. Re your question of yields rising over 5 years… well, not necessarily. Some do and some don’t. Think about how much unempoloyment benefits, for example, have gone up over the last 5 years- not much. It depends on the demographic you’re lending to. Some mining towns can have high income earners, so yields can be dictated by a small IP market. But if your IP is in a town with a shrinking population and a number of empty houses, and much of the town is unemployed (as is the case with some very tiny isolated towns), then it’s a renter’s market, and you may have to *reduce* rents.

The same can be said, of course, for some inner-city oversupplied markets- if IP’s outweigh the number of renters, sometimes we have to compromise.

kay henry

Monopoly, you misunderstand. I was saying that because I, for example, went to private schools, doesn’t mean I support the private system- I support public health, transport, education- even public housing!

And I thought your use of the word abolishment was interesting, that’s all.

kay henry

Anubis,

I work in the public education sector, so we often discuss funding to education in general. To me, funding to schools, TAFE and Universities is all a part of the same pie. The analogy seemed an apt one to me- public education goes from schools to University.

Actually, Monopoly, John Howard attended Sydney University.

kay henry

Nope Sir, I didn;t twist anything. Originally, I said:

“Last year, there was more spent on private schools than there were public Universities :o((“

…which was actually something I read in the Herald.

Then i quoted Maree O’Halloran, who said:

“In 2004 funding to private schools exceeded funding to public universities.”

…which is what I said. Where’s the twist? I am just referencing the source.

kay henry

Marc, it just seemed like the right word to use- it just came into my head as the one that suited. Dictionary.com defines pontificate as:

“1. To express opinions or judgments in a dogmatic way”

(no. 2 definition is to be a pontiff)

I notice that when anyone disagrees with you, you say that they don’t know what they are talking about, that it is their subconscious dictating what they say, that they are brainwashed by norms etc… and you use the word “evil” a lot, which suggests you have some kind of religious undertone in what you say. So basically, you are being a bit of a Pope :o) Hence, pontificate seems to suit don’t take it as derogatory- the Pope speaks the truth, and many listen to him As the Pope, he is constantly pontificating.

kay henry

Abolition? Yes, we are certainly a product of our environment and schooling :o)

Last year, there was more spent on private schools than there were public Universities :o(( Now, private Universities (Notre Dame and a bunch of others) are increasingly getting public funding. Notre Dame is starting up two new campuses in sydney, and is getting a $43 million grant from the Federal government for capital works. They will have a bunch of nursing places… and meanwhile, the sydney university undergraduate nursing places are all being lost.

Private education can have a place, but it is a shocker when public places are lost to private institutions. It’s hard for the public sector to compete when it becomes defunded. There’s no “choice” in that.

kay henry