muppet, I too have been wondering where the erstwhile Arty and Pinky have gone.[?] Maybe they have gone and got a life?[]

They couldn’t have[}], could they?[]

They seem to have taken Amit with them[].

Cheers
Mel

quote:

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You can find mortgage defaulters, but it’s a pretty cruel thing to do. There are so many properties on the market these days that you can find *very* cheap property still without preying on other people’s misery.

You still have to sleep at night. Looking for mortgagee sales is like hoping your neighbour’s business will go broke so you can buy it for cheap.

kay

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I go a lot here with what Robert Kiyosaki says. You didn’t cause them to default. If you can find them before the bank takes the house back, and look for a win/win, you may be able to help them save their credit rating. I think in aust though it’s a heck of a lot harder to find these people as our privacy laws are a lot tougher than the US.

Once the people have defaulted, the banks here have to sell the property at ‘market’ anyway, so there is no huge chance of really making a killing.

Cheers
Mel

I think that even paying cash for the entire purchase does make the property positively geared, but it does not make the property fit the 11 second solution. Fundamental difference!!

11 ss = Rent/2 * 1000 = Property Price
Positive Gearing = Income-Expenses=%+++
Negative Gearing = Income-Expenses=$—

Cheers
Mel

Thanks Huey. I can definitely trust you to check Paul out for me!!

I can teach you to drive – I have much patience.[] Can’t teach you to dance though. Not that good mineself.[]

Cheers
Mel

milen007

As a ‘gross generalisation’ when interest rates fall (as they have in the last few years) it makes property more affordable. It has also helped to fuel this boom with people buying more expensive houses than perhaps they should have (purely because of low interest rates making payments less), and combined with the FHOG, a lot more people have taken the opportunity to get into the market.

Conversely, as rates rise, the above people who borrowed more will find it difficult to meet their increased mortgage payments. There will be less people out there buying as now they can’t ‘afford it’. There is also a fairly large chance (depending on the level of over extension, and interest rate increase) that there may be a few who default, and sell themselves, or the banks will help them (ie repossess) at a price that is less than what it would have got if they had time to sell, or if the market was strong.

As I said, gross generalisation. There are many other factors that come into the property market.

Cheers
Mel

Del, same advice for you. I believe you can backdate for up to about 4 years if you have done it in that timeframe.

Cheers
Mel

Daniel

That’s how the 11 second rule works out the purchase price. It’s a filter that allows you to determine whether or not a property has a high likelihood of being cash positive.

Rent/2 * 1000

In this case the rent was 1430.

So to get purchase price
1430/2 = 715 * 1000 = $715K.

At $715K, the property will be returning 10.4%. Should be cash positive on these figures.

Cheers
Mel

Wow muppet – you are a freecell god (but I think you need to get out more[]) What’s the file in xp? I better do it for dad again cos he still plays.

I found spider solitaire in XP, so play that now.

Cheers
Mel

As long as she was the backup, and not me, that’s ok.[^]

We can enter into further discussions!![]

I think your idea of many houses all round the place to live sounds feasible. How interested are you in learning to be a pilot? With my eyesight, it’s probably not an option[!][xx(]. BUT, I think a helicopter or jet plane is a must!![]

Cheers
Mel