hi cousinwooly,

get your self-confessed bad spending habits under control… sock away your cash in an ING or Citibank online account that give 5%+ interest. Save up for at least 6-12 months. Don’t be in a hurry because deals bob up all the time. Sure they might not all yield 10.4% but they’re good none the less. If you’re struggling to find…[Read more]

cousinwooly, use the search function and spend some time reading through the posts… you’ll find answers to your questions in no time. What Steve wrote in his first book is out of date in that you can’t drive to a regional centre and pick up a 40k house and rent it for 120pw, but the principles of establishing fundamentals to find decent places…[Read more]

It’s worth paying for good advice and getting the job done properly. Don’t try and cut corners. I’m using Dale’s mob to set mine up at the moment. Wish I’d done it a few years ago, but c’est la vie.

cheers
r

Bruham

I don’t work in current affairs, but to blame newspapers and the likes of TT and ACA for a softening market is a tad simplistic. We don’t do those sort of stories in the 6pm news… if interest rates go up, we report it, if clearance rates are down we report it etc etc. We don’t offer comment or try and add fuel to any so-called fire.

cheers
r

I re-read my original reply and wanted to add:

Can you give any more details as to your circumstances, re: earning, age, why you haven’t got any savings? What are the details of your number crunching that tell you this is a good deal? Did you go to Kalgoorlie and look at the place yourself?

I wouldn’t recommend jumping into property investing…[Read more]

do you know anyone (family especially) who might help you out or go partners?

(by the way, $6000 non-genuine savings? please explain)
cheers
r

great stuff nat. well done.

you must have reasonable jobs/salaries to have achieved all that at the age of 23 considering you squeezed in uni too.

cheers
r

hi again steph

Let’s say a house costs $350k.

Most people might be able to save $50k over time to pay for 10% and costs.

That leaves $300k to borrow. At 7.1%, that’s $410 per week in interest.

At 7.5% it’s $432 per week, at 8% it’s $461 per week.

That’s a lot of money to be paying out per week in non-deductible debt. No wonder most couples…[Read more]

I think the basic answer, steph, is easy credit. And I reckon the out of control credit situation here in good ol’ Oz has the government rather concerned, because I think (my opinion only) that there is a heck of a lot of people, who have bought a heck of a lot of stuff, that they really didn’t need, with money they can barely afford.

People…[Read more]

foston,

that should read “allegedly” positive cashflow properties. Do your own research and you won’t get burnt. Don’t rely on anyone else… it just gives you someone else to blame if it all goes sour… by all means investigate the companies yourself and ask lots of questions if you’re not sure about them, just don’t blindly accept what they…[Read more]

I agree Wayne, they have to come back quite a bit more… and I’m confident they will… a 30% drop is a price reduction of $400k to $280k… places in some of the suburbs I’ve been keeping an eye on have already dropped from around $420 to mid 300s… it’s not outrageous to think they’ll come back more.

(by the way I’m surprised this thread…[Read more]

Howdy,

In a bid to add some flesh to your post, what steps are you taking to “bullet proof” your portfolio? Also, while prices have definitely eased, I don’t think a 6 year boom will unwind so quickly… I reckon better bargains will be around mid to end of next year.

Cheers
r

yeah sure brendan, have some of my hard earned equity and borrowing power… don’t think so mate… your time might be better spent learning a. about property investing and b. how to become less money poor.

cheers
r

Originally posted by zen:
I have been saying to myself that property prices has gone up way too much in the last 2 – 3 years but finally I thought I should joint the “crowd” and get an IP.

Did someone say HERD? Zen, that is not a very good reason to make decisions that could cost you dearly.

cheers
r

FWIW, I have never seen Steve recommend buying in tiny towns solely based on yield, but so many people come on these boards screaming out to be told where the cf+ deals are, and get put on to places like Rosebery Tasmania… from what I recall he says the indicators he looks for as well as yield, are other development in terms of Bunnings,…[Read more]

I agree Monopoly, it’s not a time to be alarmed, it’s a time to be licking ones lips if one is prepared. I wouldn’t say we’re at bargain basement time just yet, but there’s certainly some red spot specials about… it will be interesting to see the impact of a couple of small rate rises (even half a percent)… but then again, the fixed 3 year…[Read more]

Hi

What are the stats? Purchase price v yield? I’d also go to http://www.somersoft.com/forums and do a search because redcliffe has been mentioned many times there. Don’t rush, there will always be another opportunity if you miss out on this one. Make sure you’ve done your homework first…

Cheers
r

spot on yack, I agree.
r

Terry said “I am getting increasingly concerned about people buying inferior properties just because they are producing positive cashflow. ”

I agree… obviously cash flow is important in terms of servicing the loan, but buying props out in woop woop doesn’t make sense to me… I like regional centres with minimum populations of 35,000 – 40,000…[Read more]

Funny you should mention this aussierogue, we get all the Leader suburban newspapers at work and I always pinch the property guide to get an idea of what’s going on.

I was leafing through the latest batch last night and thought exactly the same thing, that houses right now seem a heck of a lot cheaper now than they were 18 months ago, even around…[Read more]