awww Scott I think they need to get rid of the family in the foyer to sell that unit- I really do.

It’s interesting about gentirifaction… Alexandria was a big industrial suburb before the boom, and now, after the boom… well, it’s just a big old industrial suburb! Same with Marrickville really- as in it is the same suburb with the same demographic- which I like- btw- but it is the same people who lived there 50 years ago, and live there now. Redfern is the same, chippendale is the same (I love my chippo!) I think it takes generations and decades for places to gentrify- sure, you can put in all the funky cafes, but the old locals will still use the deli and the old pizzerias. Frankly, I think gentrification makes suburbs a lot poorer culturally.

I remember seeing a show on tv about waterloo, and a woman who was a lon-term resident f public housing there said gentrification means that new people in ther neighbourhood sometimes don;t get to know their neighbours, send their kids to local schools, or shop locally… it really can dedgrade the whole community infrastructure- and probably make communities less safe, as people tend to keep an eye on each other in neighbourhoods where folks know each other, whereas if peole are feeling alienated, they tend to see accommodation as utilitarian and as a financial statement, rather than as a “home”.

kay henry

nkibel,

What do you consider a “blue chip” investment property? Elsewhere you said Docklands would be a blue-chip investment proposition in 10 years… so I am wondering what your criteria is that makes it so.

What kind of seminars do you run, nkibel?

kay henry

depreciatior,

Thanks for your honest opinion on wolli creek. I guess you’ve seen Rockdale- my god, it looks as if that place will be a slum of the future- how many dozens of unit blocks with 100 generic apartments can there be in one place before they have to drop rents to almost nothing to get tenants.

It’s interesting what you have to say about rental vacancies in WC. There are still properties coming off the plan all over sydney and the fringe suburbs. It’s why I think this “rental squeeze” thing is mostly propaganda, and I agree with you that developers and OTP onsellers would be becoming desperate.

Same goes for Alexandria and Camperdown- so many units built, so many vacancies, and buyers trying to beat the demographics.

It’s a bit of a pity about Green Square- it had so much potential.

kay henry

Michael,

I find this to be very patronising. You may not have minded posting in a newbie forum… but this is the very structured kind of thing that I feel is inappropriate.

It doesn’t matter how many posts a person has, how many IP’s they have, how much kiyosaki they have read… all that really matters is what people have to say- their ideas on RE investing, or technival information; and sometimes, merely the exchange of ideas.

I certainly think that singling out “newbies” as if they are unlearned and have little to contribute… is not something I would be interested in seeing, although I am sure it would make some people feel powerful- some people need that- go figure.

This is a forum- with some good info, and some less than useful info- but what do we want? Only serious posts for serious people? I reckon we can lighten up- this place is not gonna make us or break us as people. Sometimes, when I am feeling particularly intolerant, I just take some time out and do other things- maybe people are obsessing a little too much about forum “quality”- it’s a furphy notion, I reckon.

kay henry

REL,

Any contract is binding when it’s signed by both of you, without duress, and you can put anything into it. The contract won’t be valid, though- even if signed- if it’s found to be unconscionable (manifestly unfair) or if it’s made with a person under the age of 18 etc.

If I were you, I’d get it checked by a solicitor to see that you’re not breaking any fiduciary laws with the clause, and I’d also draw the attention of the clause to any client who is going to be subject to the clause. The obvious thing is to not discourage any client from seeking legal advice about the clause- courts would look very unfavourably upon anyone who did that- it looks dodge. They also look unfavourably upon small print in contracts.

I’d work out scenarios if I were you- how much interest would the person pay if late for 1 week, 3 months, 1 year etc, just to make sure it doesn’t end up costing a client something that would more be in the realm of a payday loan.

kay henry

christobell,

It might have been better if you sold that property at the peak of the boom, when all properties were pretty much being snapped up… many properties have decreased substantially since then- I know people who are so sorry they didn’t sell 18 months ago- sometimes ya just godda go with the boom. Even a property bought five years ago needs to have a plan- think “exit strategy”.

kay henry

Give it a break, will ya, resi? It gets a bit boring after a while.

kay henry

collie- good for you )

May I ask hoew a commercial deal works for a residential unit? Even though they have a long-term lease, why do they pay all outgoings?

Also, did you need 30% deposit if it is a remote mining community or due to small population?

And, did you take the buer’s agent fee from your net return?

Hope you don’t mind me asking these things- I get pretty curious about stuff [blush2]

kay henry

Bofclark,

Interesting story about the nurse but I would see saving up money for each house to be a rather old-fashioned way of doing things (although I admire her discipline for doing that back in 1989). However, if that lady- of the same means- attempted to start off as a nurse and save wages to buy a house in 2005 in sydney for cash- say 500k… umm- I doubt that’s possible. What does a nurse earn? About 70K? 20k tax? She would have to live with her parents (not desirable to most of us), and nick the hospital food so she could save every cent to buy the house in cash.

Many people get cash via inheritance, a divorce settlement, or some such thing. Starting with NOTHING and saving that initial money for a deposit- with no backup, and noone to bail you out if things go wrong (like parents) is a whole different ball game.

Equity is OUR money- there is nothing wrong with using it. I achieved equity during the RE boom, from a poroperty I bought in a flat market. Had I sold it 4 years earlier, I would have lost money on it, the market was so flat. Then the RE boom came and I made some money- what else would I do with it but invest it?

How mny houses can people buy on a nurse’s wage and paying cash all their lives? As I said, good on her for doing that, but first home buyer DINKs are struggling now- not merely because they spend money on trinkets and toys via credit cards… but because houses are so expensive.

Let’s be real- equity builds wealth if one purchases well.

kay henry

MA,

It would depend for me (if I had money to lend- which I don’t) on the circumstances of the person. I believe it is illegal to loan money to a current bankrupt? But for a discharged bankrupt, it would depend on HOW they became bankrupt.

For example, I would see a failure of a small business differently than I would some sort of scam. I know people who had small businesses and did not have debts repaid to them, and they got into a mess, got sick, and voila- bankrupt city.

All bankruptcies are different.

kay henry