Forum Replies Created
Sure, but I don’t think my sister would appreciate me giving you her phone number Simon.
She works for the ATO and I have discussed this issue with her (and other ATO officials) after I myself had purchased a block of land late last year with the same intent.
Cheers,
Jo
Brad,
This question has already been answered for you, my me and others in a previous thread; why are you asking EXACTLY the same question? Because the LAND was purchased with the intent to building your PPOR the ATO will require that either of you (in this case your ex-girlfriend) lives in the house for a min. of 3 months after it’s completion.
Go back and search through your archived posts and you will find it again.
ATO phone number – 13 28 61 (local call cost)
Cheers,
Jo
Hardly!!! [glum2] (I wish) What is it she says “I’m not really bad, I’m just drawn that way” [tongue]
You can check out my mug and that of some other notorious types on here by going to the members pic page: http://www.gurustation.com/pi/ How come you’re not on the mug file Pursefattener??? You’re been a member as long as I have (actually I only just beat you by one day).[biggrin]
Cheers,
Jo
Fair enough Steve,
Just keep away from Jenman; his last blog on his website was NASTY!!! [blush2]
Cheers,
Jo
Hi Steve,
Sorry I am in neither position, and as such can’t help. But your question has sparked my curiousity; are you looking at negotiating a good deal with someone who may want out of the property market??? (which I’m sure will be a few once IRs start to escalate).
Cheers,
Jo
Hi Maximus,
No problem; only to happy to accommodate.
Example 1:
Property paid 27K (Brunswick, Victoria) market value at the time was approx. 50K but got a great price from the original owner (long story). It was a large house on a double block of land.
Lived in it as my PPOR for 2 years then rented it out to “the tenants from Hell” which trashed and then torched it, hence had to be rebuilt (almost completely) however after spending considerable money (approx. 60K) on restorations the old girl was returned to her former glory, and even became heritage listed (after I sold it) [glum2]
Independent Market valuation in 1990 = 470K
Auction reserve = 480K
Sold at Auction = $549,500Example 2:
Property paid 175K (Black Rock, Vic) run down terrace (deceased estate). Market valuation a week after settlement (1993) was 255K!!! Spent approx. 75K on renovations.
Independent Market valuation in 2002 = 830K
Auction reserve = 840K
Sold at Auction = $925,000Cheers,
Jo
Nobleone,
The invitation to PM was not to continue the debate re validity of the research paper, but to give Foundation the opportunity to attack me in any way he cared to without involving anyone else as has been the case.
O’Sienna,
I am aware of what the paper reported; I have read it thoroughly. I understand that it does not dispute the “doubling” theory per se, but rather gives an account of research data for house prices between 1970-2003. On the whole I don’t disagree with aspects of the paper, but like ANY research study its findings are not free of disparities.
I agree the thread title was perhaps not the best choice, however, the handling of topic has far outweighed any real value it could have been afforded, had some maturity been demonstrated by its insitgator.[blush2]
Cheers,
Jo
Bryonent,
Let it go; it’s obvious why Foundation is trying so desparately to “myth bust” the 10 year property doubling theory, and if it means ridiculing anyone who disagrees with him along the way then let him do it. I have invited him to PM me with his queries directly but he has chosen not to and that in itself speaks volumes.
Cheers,
Jo
Foundation,
What is your problem??? I can appreciate that you give credence to the writing of the dear professor, and I’m not suggesting there is anything wrong with that, but why do you have such an issue with experienced investors who perhaps have never even read a daily newspaper let alone analysed research data; yet made millions???
There is much to learn in this forum and in Somersoft, and many of the investors have sourced their wealth from both the school of academia and that of experience; you would do well to give them (if nothing else) a bit of old fashioned common courtesy and allow them to express themselves without your ridicule.
There are many wonderful people here, who unlike myself, do not have a PhD but nonetheless are have made more money and achieved success well beyond any that my former university colleagues could ever dream of.
Jo
Originally posted by OSienna:
I find that some property investors get very defensive when their strategies or beliefs are questioned. These people don’t often like being challenged because it can be difficult for them to backup their own claims or refute an opposing argument.I don’t know whether you are referring to me specifically here O’Sienna, and if you aren’t please excuse my being so presumption. However, in the event that you are, I would like to add (if I may) that I personally have no problem with being challenged on either my strategies, beliefs and/ or the results achieved as set out in my examples. As I mentioned, these results are not everyday occurrences (I wish!!) and to provide specific causal reasons as to how they came out, that is, how I managed (for example) to sell one property for 550K when the initial outlay was a measley 27K (less than 10 years prior) would indeed be difficult, but certainly not one that I would not try to explain to the best of my ability. I would say there are many variables that played a part and although I don’t expect this type of result in every house I buy and sell, I do believe given the right circumstances/market climate such astounding results can be replicated.
Property does not grow at a constant X% every year and fluctuations along with changing market trends will help determine the price a property will fetch in the end.
As for refuting foundation’s argument, I have no inclination to do so; he feels that property does not (on average) double every 10 years, fine he is entitled to maintain that view. I am not saying it is right or wrong, only what has happened for me is achievable.
Cheers,
Jo
Originally posted by foundation:In the year 2155 (that’s only 150 years away), that same house will be worth:
One Trillion, Four Hundred & Fiften Billion, Five Hundred & Seventy-Seven Million Six Hundred Thousand Dollars…
[lmao][specool][thumbsup2]
Well if you live long enough, you might get a piece of the pie mighten you??? [winking] [laugh4][laugh4]
No foundation,
Your numbers are not flawed; true if the calculation (or MY “theory” as you so eloquently put it) is correct yes Sydney house prices would be in the millions!!! The results achieved as per my examples are not common everyday occurrences, however they are not in isolation or outside the realms of possibility given the right market conditions and with enough time in which CG can accumulate. But again, I will leave it there, it’s evident you are not reading clearly (I’ve noticed this in a few of your posts).
Correct, no one has or is forcing me to read/post, however out of courtesy I addressed your comment marked to myself; perhaps it would have been best ignored, would that have been more in line with the manner in which you are accustomed being treated by others??? [blush2]
Well I’ll let it go at that; feel free to PM me (if time permits). [whistle] Best you run off and answer ALL those PMs now, after all, the Inbox only holds so many, and if you do not clear them, it will prevent new ones coming in, and you don’t a queue now do you??? [biggrin]
Cheers,
Jo
Foundation,
I really don’t know what your problem is, nor do I care for that matter.
All I care to say on this matter any further is simply that data can be manipulated to tell any story you want it to tell, so please, don’t even go there.
Your inane need to debunk any “myth” is at best milding entertaining, and at worst, annoying and argumentative with undertones of “troll” like behaviour.
Basically foundation, I really don’t give a crock; fact or fiction, myth or truth….I am more than happy laughing all the way to the bank while you are sitting there scrutinizing the validity of historical evidence.
Enjoy!!!
Jo
Originally posted by foundation:Originally posted by Monopoly:Sorry I know I don’t exactly qualify as an investor entering the market when it is cool/quiet as it is atm.
Hi Monopoly!
I thought you had been investing consistently for over 10 years?
24 years to be exact.Surely, you would have seen a period of stagnation or slightly easing prices during that time?
I have seen the booms and bust, highs and lows (call them what you will), I have seen the abolition of negative gearing where rents went through the ceiling, forced sales, mortgagee auctions etc etc etc.On the other hand, are you saying that you believe the market is now cooler/quieter than at any time in the last 10 years? [blink]
It is flat yes, and prices have dropped, but has it bust IMO….NO!!! Prices are significantly more realistic than in the past heated market however the adjustment is expected and most experienced investors will not only recognise this shift but make the most of it.Have you known others who have pulled the pin while you stuck to your plan?
Too many to count.Ever been tempted to cut & run?
They didn’t just cut, they tore down the gates and each other in their haste!!!Where did you find the strength to remain committed?
It comes with a passion for property; I had the best teachers anyone could ask for, and they were steadfast in their views, which may have been simplistic to many, but I don’t care, I achieved my financial freedom and then some!!!
How long do you think the average investor will hold on in a flat market?
2 minutes!!! An experienced one; all the way through to the next boom!!!My own property investing experience is insignificant compared to yours (I pulled out when I thought the market had topped out in 03), so I value the insight you can offer.
Big mistake!!!Although, on second thought, it does also depend on your financial commitment at the time.
I believe in buying low, selling high, and wherever possible HOLD AS LONG AS YOU CAN, HOWEVER….and this is really important, you must be able to do this COMFORTABLY otherwise, holding on will only land you in greater financial ruin.
Property investing is about strategy, planning, balance,common sense and a heck of alot of patience….NO GREAT MYSTERY. It is that simple!!!
Cheers,
Jo
Foundation,
What is your biggest concern; that property does or in your opinion does not double in 7-10 years, or that YOUR property has not performed in this way???
Example 1:
Bought PPOR in 1981 for 27K
(turned into IP after 2 years)
Sold it in 1990 for 550KBought IP in 1993 for 175K
Sold in 2002 for 925KAnd that’s just 2; I could go on but bragging is not my style and apart from being unnecessary, bores me silly!!! [sleepyanim]
As you can see the figures did more than double, triple or even quadruple, and it was not always in boom times either. I have been buying and selling both here and interstate for over 20 years and if you do your homework and buy well, you will make money twice, thrice and ten-fold!!!
If you want to believe that properties do not double between 7-10 years, fine that is your perogative….but to say that it doesn’t happen based on one piece of research is ridiculous. And please don’t bore me with this study found or that theorist proved because I know more about research methodology than I care to give more than a passing thought to.
Bottom line….land appreciates, and consequently so to does whatever is on it!!! HOWEVER it does rely heavily on where that bit of dirt is, what surrounds it, supply and demand and a whole lot of other factors. You buy crap, you get weeds for growth and consequently you make squat.[blush2]
You want to believe likewise; cool…knock yourself out, don’t buy any, and leave it for those of us who are misguided enough to think that it does.
Enjoy!!!
Jo
For those interested in the articles by quiggles, here is the link to both (sorry I know one was cited in the previous page of this thread, but I am posting both on the one page for easy access):
http://www.somersoft.com/forums/showthread.php?t=18255&highlight=quiggles
http://www.somersoft.com/forums/showthread.php?t=18101&highlight=quiggles
Cheers,
Jo
Hi Gramyre,
Sorry I know I don’t exactly qualify as an investor entering the market when it is cool/quiet as it is atm. My guess is that many starter investors would probably be somewhat anxious about buying into it now simply because (a) prospects look gloomy, and (b) naysayers are booming gloomier!!! [blush2]
As an investor from many years, I would encourage any “newbie” investor to buy now on the PROVISO that they do not over-extend themselves financially. If anyone has to stretch their finances beyond a comfortable level, with a min.2% leeway, then they are setting themselves up for potential hardship, and I would highly recommend they don’t do it.
For me, NOW is a great time to buy, property prices are reasonable and negotiation power can be maximised to secure even better deals. Sure CG is not going to be forthcoming in the immediate future (but just like the clairol ad) “it will happen” if you research well, and select wisely.
Good luck and happy house/unit hunting!! [biggrin]
Cheers,
Jo
Told you, you HAVE TO ASK A QUESTION about them, that will guarantee the thread is deleted, happens every time without fail.[blush2]
That’s easy, you can test the theory easily enough….just ask a question about you-know-who to one of their you-know-whats-its here and wha…la…..pooft….gone!!! [rolleyesanim]
