wezwaz, I believe it is eminently possible to make 10% on 300k. That’s what this website is about, and people on here are already making 10%. However, as Derek said- you need to have paid your property off. You can get 10% return on 300k worth of property, but if you still owe 250k- you ain;t got nada (well, slightly more than nada, but still close to nada).

Is 30k enough to live on anyway, wezwaz? You would still be living on far less than the average Australian wage.

kay henry

Very cute Rugs- thanks, I needed that [cap]

kay henry

Connie,

Re Hans Jakobi’s product… I see Hans as more of a “clearing house” as in a person who collects products from other “gurus” and who sells them in a job lot. A lot of the products he sells (other people’s books and his own) come from varied approaches- which is a good thing, in my opinion! But basically, if you’ve read a lot of the books already, you’d have an idea where each of the authors is coming from.

Re your rural property, you’d probably have to work out- just how rural is it? If the current tenant leaves, will there be enough tenant population and infrastructure in the town to get the same rental? For 185k for a 3-bedroom unit in a rural place, is it newish? Post 1985 or 1987? Because if so, the depreciation allowances available will push up your yield.

Sounds like you’re on your way though. Maybe Derek can push you around a bit more if you need it [strum]

kay henry

awwww [hair2] Yeah, it’s fun to be a [grad] But don’t worry- I’ll be zen about it [goatee] You live another day, Pisces- hehe.

And thanks Rugs (nice to see you back fella), and others

kay henry

Pisces and wayne

Haaaaaving said what I said, I guess I was considering longer-term financial partnerships (the thought raises nightmares for me)… however, if there were 5 people who had say 50k each and there was some sort of short deal…. and there was a real chance of some kind of significant CG… and the risk wasn’t excruciating… and it would be over quickly… then I would consider it.

Overall, in a deal like that (asI said, short-term), I would be looking for the partners to:

(1) have stable personalities. I think the thing which can destroy anything can be those who lose (a) the plot
(b) their temper
(c) sight of the shared and common vision of the members

(2) be a similar financial position to begin with. I wouldn’t want the partners to be:
(a) in such a position that they would lose the shirts off their back if the deal didn’t work out
and the money was lost- this could lead to desperate or unreasonable decisions being made
(b) in such a position that the 50k menat nothing, in which case the person might be overly-cavalier or speculative.

The deal would also have to be watertight in legal terms, looked at by a lawyer independent to each partner, and each person would share equal profit or loss.

The deal would also have to be of about 3 months duration- quick enough to get excited about, and not so slow that I would get too stressed. I don’t like waiting- it gives me chest pains )

Re family or friends… I would NEVER do a financial deal with family members (I love them too much and family relationships can be complex enough without making it financial). With friends, they would have to fit into the above personality types and financial situation.

kay henry

UKSaints,

I am not sure it is bad press that is going to change wraps- I think it is the govt making changes to the law.

Whilst the VFA is “regulating” wraps- correct me if I’m wrong here, Pelican, but the VFA could only suggest “guidelines” for its members- not “regulations” right? (I ask this because I am constantly having to work in an environment where the powers that be make “guidelines” instead of policy/regulation, and then those guidelines remain unenforceable).

If the govt regulates, UK, via changes to the Credit Act or whatever, then participants in the industry will have to comply.

I also think that for those lower income earners who have used wraps .. if one looks at the price of properties in 2004, then many of them might not be able to afford a wrap. I would say the market would have to correct significantly downwards, for wraps to remain vogue in 2004.

Mel, I would be interested to see some quantitative research, actually, on the incomes of those who have bought property via wraps. It really seems unchartered territory, and so, we can only speculate on the demography.

Does the VFA have statistics on wrappees, Pelican?

kay henry

Yep, what I posted was just info from a company. Thought it might be a bit of a break for the author though, while the Mortgage brokers squabbled :+P At least there’s info on what’s provided there.

kay henry

luckyone,

Probably depends on which state you live in. A townhouse in NSW is a two-story place. In nsw, a one-story place like yours would probably be termed a “villa”.

kay henry

yack, I hear ya re a cooling market.

You said:

“So those who have purchased in the last 18 months will soon be looking at negative equity and VERY slow growth and the problems of owning properties – repairs, tenants, cleaning, painting etc, etc.”

depends… I bought a property, August 2003 – bank val says it’s increased by 30%. Property I bought at Xmas has increased by 20% (bank val done a week ago). It’s not all doom and gloom. And I intend to keep buying too. Hoping to conclude a purchase in sydney this week (fingers crossed!!) Because i’ve never *relied* on CG (always seen it as a bonus), then it doesn’t bother me much what prices do- if my IP’s happen to double over 15 years, i’ll be stoked. I did sell off an IP in March though, and still got boom prices for it, so sometimes it’s good to get out (for underperforming properties) when the going’s good.

If you think prices are declining, yack, it might be time for you to buy another IP?

kay henry

dandan,

You could also upgrade the finishes- to say, granite or marble kitchen and vanity (don’t overcapitalise though). Things like downlights might help. Also, in my underground car space, my car has a lockable “car cage”. It doesn’t take up any more room, but it makes me feel safe about my car.

Another thing you can do is furnish the unit. That can bevery attractive to Inernational students- it will give you more rent, make your place eminently saleable, and provide you with depreciation benefits.

kay henry