I think you will find that in a housing crash, rental returns are much higher just because the house price is so much lower. The nominal rent however doesn’t change much.

btw I was also recommending silver as an investment this time last year here https://www.propertyinvesting.com/forums/community/opinionated/4331698?highlight=mattnz%2Csilver#comment-208893

Since then the price of Silver has doubled!!

ALF1 wrote:
NO, you are wrong again Matt! Cash is NEVER king. During WW2, when the proverbial hit the fan a whole suitcase of cash in Germany wouldn't buy you a loaf of bread. GOLD and precious metals are truly king my friend and I guess this does prove that a single post grad in Finance doesn't make one the Master Guru of Australian and World…[Read more]

In a crash like this, cash is king. Opportunities willl present themselves in property if you have no debt and are cashed up. Such opportunities exist in USA today.They are in step 12 – QE2.

btw Masters is a post-grad degree.

Here is an article which explains the situation and clearly demonstrates NAB think Australian house prices don’t represent fair value using the words of their CFO.

Did NAB just give up on housing ?

It is interesting to note the similarities to this post of mine last month…[Read more]

xdrew wrote:
Take a good look at where most of our money .. trade and income comes from .. its not the US .. which accounts for less than 10% of that. Most of our business is done with east Asia and provinces. We have little to no exposure to most of the countries that are suffering at the moment.

Our relationship with USA, Ireland, Iceland…[Read more]

xdrew wrote:
Our current finance issues are compounded by the reality that the big four have hammered down on lending criteria to almost ridiculous levels. I had a friend who has over 20 million in assets and was lending on a property worth 5 million for 60% of the total value (unencumbered previously). The banks actually turned around and asked…[Read more]

Just the result of a huge amount of research and an understanding of what is happening internationally.

There is no point making predictions of a sequence of related events after they have occurred.

$2.6 million unrenovated property, that cant rent for $400 per week!! Surely they haven’t purchased to rent out anyway. I bet you don’t see any advertisements for renting the property coming up. They must plan a development themselves and are just trying it on.

Gladstone market hasn’t moved much in the past 3 years. There are plenty of properties available to choose from and huge rental demand already, with thousands of employees still to arrive. Hard to go wrong with $40 billion + being invested in a town of 40,000 people. It is my number one pick in Australia.

Hi Troy,

Does that include cheaper properties i.e. the $20k-$50 bargains out there at the moment?

Also, what sort of interest rate and term?

I don’t even feel safe in that area at night. really poor lighting, no character.

You would have to be crazy to expect rents to increase just because landlords overpaid for properties.

Rents reflect the supply and demand for accommodation and what the average household can afford to pay for it. The significant premium of 8% per annum holding cost vs 3% rental return of the average house reflects SPECULATION that a greater fool…[Read more]

Try Russell Island, land starts at $27k. Houses sell in the 150-170k range http://www.realestate.com.au/property-house-qld-russell+island-107204476

It definitely sounds like you are trying to get maximum potential upside while exposing your parents to huge potential downside. You should make your first priority removing your parents risk in your investments before even looking at expanding your own empire.

Also note that when your Aunt started building up a portfolio, conditions and prices…[Read more]

The more they have to invest to fit out the space the longer they are likely to stay at the premises.

Scott No Mates wrote:
I'll disagree, the only way is up & that'll help pull the AUD down creating upward pressure on inflation as the cost of imports rockets upwards.

Hi Scott,Increasing interest rates will make AUD stronger, not weaker and the cost of imports would drop as a result.

I'm still waiting for the special forum for the 250k club, which I joined a year ago!!!

I have 3 investment properties, but I am planning to sell 2 of them this year. The third I intend to develop using the proceeds of the other 2.I don't have a desire to manage 130 properties and see it more likely as a road to bankruptcy in Australia. The market here is ridiculously overpriced. If I was inclined to try anywhere, I think the best m…[Read more]

I bet Nathan Birch could do it in Australia if he set his mind to it. He is the most creative property investor I have seen.
http://www.nathanbirch.com.au/index-1.html