Originally posted by Ibuycashflow:
Olly Newland may offer some good advice but he has already proven he can be wrong.

Would Newland not argue that he has learnt from his past mistakes? Surely that can only add more credence to his advice.

I’m not sure what all the hype is about at the moment. It’s all speculation until interest rates actually go up. The headlines are getting a little irritating of late. One day it’s certain the next day it’s maybe. Just watch the Aussie dollar go up and down like a yo-yo with all the interest rate pundits trying to second-guess the timing of the…[Read more]

Originally posted by Derek:
ABS projections (and I don’t have them at my finger tips) point to a decreasing number of people per household – which in part (+ other factors) goes to show why more places (I was going to say houses) for people to live are required.

How about the statistic about the number of young adults still living at home…[Read more]

Originally posted by yack:
I am not really sure about property having a return greater than inflation. … So I know they will exceed the rate of inflation.

Yack, aren’t these two statements sort of conflicting? Or have I misread you completely?

Has anyone actually bothered to read the research paper that was posted?

The gist of the whole thing can be found in the summary (as posted by foundation amongst all the quotes):

There were significant housing price booms from 1971 to 1974, from 1979 to 1981, from 1987 to 1989, and from 1996 through to 2003. After each of the first three booms,…[Read more]

Hi want2brich,

I think you may have missed the point of crj’s post. Regardless of what is involved in a directional transfer you’re still going to be out of pocket with stamp duty, capital gains tax and legal fees. This is going to eat into your $25K gross profit.

You have to work out what your net gain will be and whether it is worth your…[Read more]

Originally posted by Michael Whyte:
Spanky,

I think you’re on to something here. I for one, was originally going to post a word of caution about investing at the peak of the market, but I don’t think that’s what you’re talking about…

Cheers,
Michael.

Well, if you go back to Spanky’s original post, I think he was advocating just…[Read more]

MasterREL, a lot of property investors don’t like to think about real life events like interest rate rises and bad tenants. It ruins the optimism that they hold for that “perfect” IP that runs like clockwork. You know, just like in a game of monopoly! I roll the dice, collect titles for each street that I land on, build lots of little green…[Read more]

Here’s a slightly more realistic view of the current market, again from the SMH:

Stay grounded: prices haven’t hit the floor
http://www.smh.com.au/news/Opinion/Stay-grounded-prices-havent-hit-the-floor/2005/01/19/1106110809219.html

The author believes that there won’t be any “meaningful” increase in prices until the end of the decade.

I wouldn’t get too excited just yet. This is more or less a repeat of yesterday’s article:

Property rebound as home loans rise
http://www.smh.com.au/news/National/Property-rebound-as-home-loans-rise/2005/01/17/1105810817186.html

Home loan approvals aren’t exactly the best measure of house price movements. The stats quoted in these articles do…[Read more]

Here’s a link to the Capital Gains Tax estimator from the Your Mortgage magazine website:

http://www.yourmortgage.com.au/calculators/capital_gains_tax/

Hi pgrim,

Unfortunately you will not escape Australian tax rates if there is a double tax agreement between the country you’re investing in and Australia e.g. New Zealand.

The tax you’ve paid in NZ will count as a credit towards the tax you will have to pay in Oz. Of course, some people will suggest a plethora of schemes to get around the system…[Read more]

One of the problems with calculating cashflow is the interest rate element. A lot of property investors are highly geared which means that slight increases in rates will significantly impact their cashflow. Paying off an “interest-only” loan will serve to reinforce the situation. Rent and general outgoings are relatively predictable and somewhat…[Read more]