Interesting question Allan. I am not an economist but here’s my simplistic take on it.
Interest rate is basically the “price” of money.
If the “price of money” goes up, the price of everything else goes up respectively – but isn’t that what we call “inflation”? So, raising interest rates has the effect of raising inflation in the immediate term.…[Read more]

HB
Fully agree with your last post re: diversifying and taking the blinkers off. But I think one needs to be in a specific financial position to be able to do so.
There may be an opportunity for “forumites” to learn from your experience and case history. [grad]
How did you get into property 15 years ago? Did you have the money or did you borrow…[Read more]

Fully agree with Paul, Redwing, et al. There is no right or wrong answer to CF+ or CF-. The strategy should depend on your circumstance. About 8 or so years ago, I had the cash flow but not the equity. So I invested in negatively geared properties.
Today, the negatively geared properties have appreciated in value. I have the equity but my cash…[Read more]

Originally posted by hb:
sorry guys
i couldn’t believe 420k invested 2 yrs ago would make so much.
had to check again
and again….

and yes here the FINAL figures

cba 2 years ago $30.59 today $43.88 420K invested today $602k
bhp 2 years ago $11.10 today $25.53 420k invested today $966K

It’s always easy to talk about share market successes, but…[Read more]

I have been keeping an eye on DHA opportunities for the past 6-8 months or so. In theory they seem attractive with guranteed rent for xxxx peroid, etc,etc. But I agree with Adam, they have a ridiculous PM fee. I think a close parallel would be “time share properties” where you get caught up with owning the property but have little control on…[Read more]

I have heard about the following strategy but have not yet done it myself.
Charge a slightly higher rent but the tenant gets to keep the furniture if he/she signs a 3 year lease and pays rent on time everytime.

Cheers
Pyramid

I have heard (may be true, may be a rumour) that it is impossible to get tenants out of a property because the legislation in India is very landlord unfriendly. Even if they default![wha]

Cheers
Pyramid

Originally posted by hb:

OK lets try that same money…something different….

2. buy some plant and equipment $100K

HB
You make some very good arguments for starting a business with much higher returns. However, the old adage still applies “rewards are directly proportional to the risks”. Start-up businesses present a higher risk, therefore…[Read more]

Originally posted by Terryw:

I wouldn’t do anymore. I have foudn the profit is too small for the hassle. It ties up your funds, and so you must take into account the opportunity costs.

Terry
So how are you investing in property instead?

Cheers
Pyramid

Originally posted by Jenny1:

Just go back to your PM and ask them to clarify your statement, he will either have a logical response and give you a breakdown of this figure or squirm like hell!

I reckon this is the best advice. So have you contacted the PM Nathan? What was the response?[evo]

Cheers
Pyramid

Originally posted by Jaffasoft:
So it’s just a transportable rectangular building 6 by 3 meters, with shower bay, kitchenette, sink, hot water service, all electric with power points and safety switch, guttering, flat roof. Doesn’t say it has got a toilet.

Did I miss something? What’s the difference between this and a caravan park cabin? Are…[Read more]

Originally posted by blogs:
Whats even funnier was when I was saying this was going to happen a few months ago all the so called ‘experts’ on this bored laughed at me[hmm] I can remember quite distinctly some were even belittling me saying property prices were going to keep going up bwahahahahahah
No matter how you look at it, property prices…[Read more]

Originally posted by minidaz:
The question i have is that now we will have to seperate loans 1 for our current property and a second for the deposit’s then a third for the other 80% how do investors cover the interest on the second loan for the deposit’s? In other words if we have to use the profit’s we make it seems pointless to borrow the money…[Read more]

We recently engaged two RE agents in Sydney to find a tenant for our vacant property. The first one to sign up a suitable tenant at an acceptable rental was appoined as the property manager.

[thumbsup2]

Cheers
Pyramid

Richard
The problen in Sydney is that the lower end properties (houses) are already at $250-280k. After closing costs (stamp duty, conveyencing, wrapee mark up, etc) they come close to the $300k range.
[glum2]

I too am getting many queries in Sydney but do not seem to get people to commit. Perhaps my prices are too high. I am looking at a$30k markup on the closing property price (a $300k property offered to the wrapee at $330k) and a 2% premium on the interest rate. Is this unreasonable? What margins are successful wrapers charging?

Cheers
Pyramid

Carlin
Click on the tab marked “Investor HQ” next to the “Forums” tab at the top of the page. It’s all explained there.
I don’t know of the legalities in SA.

Cheers
Pyramid

Interesting hypothetical. But what’s the point?

Cheers
Pyramid

Thanks Paul. I have just joined up.

Cheers
Pyramid

Michael
You haven’t looked hard enough. Look under the “Getting Creative” section of the Forums

Cheers
Pyramid