Hmmm… sounds like Getting There is not very thick-skinned. Appears to be a little sensitive about the initial criticism.

Aw, come-on Getting There, don’t be like that – we’ll try to be a little nicer to you if you come back. Perhaps a little more grovelling from others will convince you to share the details of your grand plan?

[baaa]

Originally posted by Jenny1:
Turnby

Why would anyone put that sort of information on this forum,people do their own research to get rewards.
…
What would happen is that the suburb/town would dry up cash flow + properties with all the interest shown from the forum.
…

Why would someone share such information you ask? One reason I can think of…[Read more]

Originally posted by aussierogue:
some landlords will be able to increase rents and some wont. landlords must try and tennants must try and avoid it.

this is the free market system at work.

How very true. Just look at the number of young adults still living at home with their parents. There’s a threshold to how much people are willing to pay for…[Read more]

You want to know WHY? Here’s an editorial from today’s SMH that provides one explanation:

Hangover awaits after years of extravagance

Date: March 7 2005

We are seeing the first signs of the pain that will follow a decade of greed, writes Clive Hamilton.

In a previous era, when rich people found themselves in financial difficulty because they…[Read more]

Originally posted by unannounced:
There seems to be alot of speculation of what will happen because of the rate rises.

Having read an article or two elsewhere*, there has been the suggestion that the current rate rise may have had little, or no affect at all.

There will always be reports from either side of the fence. Here’s one from the Sydney…[Read more]

Originally posted by foundation:
I think the following article contains valuable information about true house values, the factors that have lead to excessive house price inflation and what the future may hold:

Link appears to be broken. Managed to Google for it (“Andrew Farlow” “University of Oxford”) and found the correct…[Read more]

Originally posted by Ronulas:
Secondly, regardless of what the stats say, where I invest very few own their own homes so stats are meaningless. The reality of the situation is that there are large pockets of people can not afford to get into the market and therefor must rent.

If you invest in areas where “very few own their own homes” then…[Read more]

Originally posted by Ronulas:
An exodus of investers means a glut of homes on the market.This reduces prices which allows homeowners back into the market which then causes rental properties to be scarce again. Causing high rents. Supply and demand.

Oh, and I forgot to add that foundation has already countered that point with the…[Read more]

Originally posted by Ronulas:
There will always be more renters than home owners. Thus the rental demand will always be there.

Sorry Ronulas, I must correct you there. According to the ABS it is actually the other way around:

More than two-thirds of Australian households owned or were buying their dwelling at the time of the August 2001…[Read more]

Originally posted by foundation:
Anyway, I think there’s some confusion here between inflation & gearing/ leveraging. Leveraging adds risk and potential return regardless of consumer price inflation. The reason CPI is good for PIs is that wages (and therefore rents) tend to rise roughly in parallel with CPI, eroding the relative cost of a mortgage…[Read more]

Thanks for making that clear, Jeff. But we all know that in reality the maths isn’t as straight-forward as that:

$100K for house with 10% down.
Price rises 10% after one year = $110K

So to realise the increased equity I would have to sell the property right?

Factor in the following and the numbers don’t look as rosey anymore:

Stamp duty paid…[Read more]

If you put down a 10% deposit on a positive or neutral cash flow IP then a 10% increase in the property value would reflect a 100% increase in your deposit, 10 times that of inflation.

eg. $10k deposit on $100k property – you own 10% of property.
NOW –
$110k property and now $20k equity – you now own 18% of property.

Is this some kind of voodoo…[Read more]

Originally posted by resiwealth:
I would like to see the rates up to 10%, bring it on tomorrow.

Phil

Phil, you do realise that the housing market will most likely collapse if interest rates hit 10% tomorrow. Is this something you’ve been wishing for?

Thirdly, I have not read one response from you regarding the Olly’s “not so new” book “The Day the Bubble Bursts”, only criticism of my post.

Settle down there, Jeff. You seem awfully sensitive about my criticism towards your unabashed dislike of this particular author. I merely made the simple point that you shouldn’t dismiss a book altogether…[Read more]

Originally posted by yack:
Wages figures blew out in the Dec quarter. Rates may be on the rise. i would love to see a .5 to 1% rise over the next 18 months.

I was just reading about that! Here’s a link to a related news article for those who are interested:

Wage creep adds to rates chatter
http://www.abc.net.au/news/newsitems/200502/s1309121.htm

It’s probably a better idea to have half your home loan fixed and the other half variable. It provides more flexibility that way. Some fix interest loans can incur penalties so it’s best to tread carefully before diving in head-first.

Here’s an article from the Sun-Herald that’s of interest to those thinking about fixed interest…[Read more]

Originally posted by Ibuycashflow:
You really are missing the point.

I don’t think you were making much of a point in the first place. The original post was asking for comments on Newland’s new book, “The Day The Bubble Bursts”. You responded by making a broad generalisation based on his previous book. How can you fairly judge something you have…[Read more]

Jenny1 is absolutely right. Compromise is the key here. I once had a tenant make the same request. I asked them nicely if they wanted to go halves in installing a security door. They happily obliged, we agreed on a budget and they chose the design.

Originally posted by Ibuycashflow:
I will now wait until Rodney Adler writes a book on how to run an insurance company before I comment on that one.

You know, if he ever did write a book I wouldn’t write him off immediately. I’d be looking forward to a chapter titled “How to Not to Get Busted While Swindling an Insurance Company”.

Ibuycashflow,…[Read more]

Originally posted by woodsman:

It might not effect the more seasoned or astutue investors, but it may have a real effect on the highly leveraged borrowers and generally has a psychological effect (if not financial )on Mr & Mrs Jo Average.

I don’t think that there are a lot of seasoned or astute investors out there at the moment. Most have…[Read more]