Originally posted by resiwealth:
One interesting point I would like to note here is this, people/we/me/others are very good at reading an analysing the past yet we struggle to get the future right, go figure.

Phil,

Maybe I can help, or more accurately, maybe Bill Evans (Global Head of Economics at Westpac) can…[Read more]

Gav,

I second Derek’s call on Steve Navra being good value. I met him at SIG where he presented his view on financial structures and making your money work three times.

His next course is May 14 in North Sydney and only costs around $170 (he only covers costs as he is independently wealthy and doesn’t like the sprukers who charge a motza for…[Read more]

Originally posted by resiwealth:
3. I was disapointed the interest rates did not go up higher, creating more opportunities.

Phil,

Me too! But, even at current levels there’s enough jitteriness in the market to start opening opportunities. I’m not the deft hand that you are, but I am still looking and will let you know how I get on in the next…[Read more]

Originally posted by Ibuycashflow:
what do you do when “the WHOLE market is headed for a prolonged period of stagnation”?

??Put your money in the bank???

I think that was exactly my recommendation…

You’d be better off putting the cash in to a fixed interest deposit with a big bank or some other investment option (so long as the after tax…[Read more]

Jeff,

I agree that you can make money out of cash flow alone, but my point is that regardless of which strategy you adopt, CG/CL is far more important than marginal cashflow considerations. Cash flow might make 1-2% difference on equity employed depending on the selected property, but CG/CL can make 10-20% or more difference on your ultimate…[Read more]

Jeff,

Good worked example, and I admit I didn’t factor that it was an IRR return on your money, but considered your money employed, but I think money employed is important as the leverage increases your potential gain/loss.

My concern with the example given is that you’re making only $3.4K on your $100K employed. One of the real benefits of…[Read more]

Originally posted by Ibuycashflow:
Sorry Michael, I can’t agree with you here. Buying on a 9% yield and borrowing 80% at 7% gives you 2% on everything you borrow. It’s this variance which provides us with excessive returns on capital employed.

Jeff, My point is that a 2% net yield on money employed will not cover your cost of capital. That isn’t…[Read more]

Originally posted by foundation:
… just before they start going up again![biggrin]
Stay tuned Padmaa, I’ll let you know.

And just like that Foundation you become a “Valued forum contributor”. The big 300 hey. [biggrin]

I’m with foundation on this one.

[sarcasm] Despite popular belief, the real estate market really is cyclical! [/sarcasm] [biggrin]

People who say that if you can afford to hold for the long term then why not buy now are not allowing for the current value of money impact. Inflation will erode any negligible medium term returns leaving you…[Read more]

Yep, and some motivated sellers! But, if this is just the tip of the iceberg then those sellers are only going to get more motivated if you let the game play out as its headed.

Ciao,
MW

Angel,

If servicability of the three loans is becoming an issue then it seems you are overstretched for your current means. The obvious answer would be to divest one of the properties and use the profits to pay down the mortgages on the other two until your cash flow position is more manageable. You don’t necessarily need to sell all three and…[Read more]

Originally posted by resiwealth:
How’s life Mike ??? regards to all … Phil[weird]

Phil,

Couldn’t be better! Trust you’re well too!! Just got back from 5 weeks in Africa living the high life. And of course, Kay is now 21 weeks pregnant, which is just insane!!!

We just about own our PPOR outright and are equity rich in a falling market.…[Read more]

JPD,

Ouch!

Good for you in fighting your way out of it as a 22 YO.

I think we’re on a bit of a sleeper with the land in Bundy but to be honest I haven’t valued it or looked at developing it recently. Maybe in the next cycle in a few years time I’ll look at my development options to capitalise on it.

Good lukc with your agistment if you decide…[Read more]

Nat,

Nice post! Succinct and informative…

If I could give kudos (like you can on SS) then I would. [biggrin]

Interesting that demand for 100% LVR is low though. I know you need insurance as you pointed out, but would have thought that this would allieviate the “endless deposit” problem that Peter Spann talks about. In his book he claims…[Read more]

FC,

I know that DD is active bird dogging in QLD at the moment and has received some positive feedback from other forum members.

Send him a PM or email with your requirements and see what he comes back with.

Cheers,
Michael.

JPD,

Sounds like a good plan to me…

My wife and I own 40 acres at Bundaberg which she agists to a local cow cockie to run his cattle on. He only runs a dozen or so, and pays a small amount of cash to her as well as maintaining the property. It suffers from rag weed every now and again and he pays to have it cleared from the property.

Our…[Read more]

JPD,

Sounds like a good plan to me…

My wife and I own 40 acres at Bundaberg which she agists to a local cow cockie to run his cattle on. He only runs a dozen or so, and pays a small amount of cash to her as well as maintaining the property. It suffers from rag weed every now and again and he pays to have it cleared from the property.

Our…[Read more]

Originally posted by Greg F:
Don’t keep us drooling, tell us about Africa!! (ie., make us drool some more [biggrin][cap]) With such high consumption, how can you and Kay afford to invest? (just kidding [cigar])

Greg [biggrin],

The “high consumption” question is a good one, but in reality we backpacked to keep costs down and flew there on…[Read more]

Hmmmmm???

All I can say is that BIS Shrapnel have just revised their 2005 estimate of new housing starts in Australia from 160,000 down to 145,000. They were trailing HIH which had already factored a slump in 2005 followed by a minor recovery in 2006. Now the two are more closely aligned…

I’m in the building industry and we rely on these and…[Read more]

Terry,

Here, here! Great contributions and obviously a lot of them!!

PS. I’ll be PM’ing or emailing soon to get a LOC set up on my PPOR. See, contributing here does have direct positive outcomes for those that do so. [biggrin]

Cheers,
Michael.