Hi Minny,

You’re bloody amazing.

Is your birthday early to mid July by chance?

Phil

Hi Ghoti,

On one point. Rentals need to be “arms length” for tax purposes. Reduced rent for family to %5 a week for tax purposes will not sit well with the ATO.

Kind regards, Phil

>>however I was looking for that secret information that the town planner won’t want to tell anyone.<<

Leigh, that is inside information []

Pisces133

Hi Anne,

I’m lost for words.

Kind regards in sharing that with us all.

Phil

Hi Kay,

I am interested to see that you have formulated a process in your puchasing approach. Would you care to expand upon your thought process on the ethics to which you refer? Which types of investing do you see as unethical and why?

Regards, Phil

Hi Steve,

I think I understand where your logic is heading here.

Highly geared PPOR owners flood the market
Market prices drop to meet the increased supply
Ex owners will become the new tenants in demand
Rent up & prices down will attract the investor

So far, it looks like an environment matching your positive cash flow principle.

However as the next wave of rentals become available, could we still expect +ve cashflow with an increased rental supply in a market of now higher interest rates?

Regards, Phil

>>The bank told me they value on what they would sell it for if they wanted to sell it immediately in any market conditions.<<

Very interesting. Which bank ? I wonder whether the reason is because that bank is already running scared, ahead of the pack ?

Or is, as Simon Macks suggests, the reason that the valuer had few comparable sales data for the property or was it perhaps the fact that the property is located in a rural area?

And, another possibility, did you perhaps pay too much for the property ??

>>I am sure others have had poor market valuations done too.<<

Yes that is true as well. However if one has evidence to the contrary and present that to the valuer then more often than not the valuer will adjust his figure.

>>Bank valuations coming in higher than the purchase price.<<

Most unusual as generally the valuer wants to protect his backside and just falls into line with the selling price.

Fair ? hardly but that is life.

Cheers,

Pisces133

>>Seems to me the riskiest vendor behaviour I’ve seen is to buy before selling, and that’s dangerous no matter what method you use to sell.<<

Ghoti, in a strongly rising market that is the best way to go about it.

Imagine selling your own house first and thence to find out that you are no longer able to buy in the area because prices have flown away from you by the time you found the right kind of house.

BTW house prices definitely appear to be softening up.

A property in Dover Heights I know of which would have sold for say $ 1.2 M a few months ago still attracted 91 inspections but no-one even asking for contracts or making a bid at auction.

Another friend had an open house for a semi in Rose Bay and had 34 inspections last Saturday.
So people are still looking but I guess they all are looking for bargains now.

There just doesn’t appear to be the same kind of urgency now as there has been lately.

Some years ago I myself experienced a particular frenzy real estate prices period and it was very hard not to be affected by the panicky mood (of fearing to be missing out) prevailing at the time.

At the time it was just about impossible to imagine the market coming down.

Today is different and one may well pick up a bargain if the vendor happens to feel under pressure.

At auction or after auction is a good time.
Cheers,

Pisces133

Del I want to come and live with you!!! PLEASE?? I can bring all my animals too! LOL

As for shifting….Ill be at work that day…no no I just CAN NOT get time off….oh what a shame….*sigh* [][] I will leave for work from one house….and come home to a different one! LOL

:þ