Hi

I’d be amazed if they were deductible as well… perhaps that’s part of the lure of going in the first place… “sure it costs 10k to go, but I’ll get it back from the tax man in the end.”

cheers
r

Hi Phil,

Give a bit more info, and you’ll get some more details replies.

Cheers
r

I’d look awfully carefully at anything that offered a rental “guarantee”

cheers
r

Hi Bruce,

I know you were banned from the somersoft website, I didn’t realise you were given the “flick” from this one…
I’ll just reiterate that both sides clearly have their pros and cons… I personally wouldn’t invest in a tiny country town… regional centres are more my go, because I can’t afford to buy heavily negatively geared places in the metro areas. Surely you can’t scoff at people for that. It’s horses for courses. With my plan I will have the choice not to work by the time I’m 40… hopefully sooner. If I was to heavily negatively gear, I doubt I could do it. As you well know, everything’s different now to what it was in 1999… if I was starting back then I’d have bought metro (hindsight’s a wonderful thing), but now, I can’t. When the cycle takes it’s next charge, perhaps I will be able to… we’ll see.

Cheers
r

do they mention which towns you’re going to? I reckon the likes of Parkes, Orange, Forbes, Dubbo will be on the list… anyone else want to make some guesses?

cheers
r

I thought you were time poor Yack.

Cheers
r

Fair enough Bear, good luck with it… []
r

Yes Bear, but what fundamentals were driving the CG, and are they sustainable?

Cheers
r

Yack,

Just for the sake of the discussion, I’d like to point out that when we’re talking about areas with positive cashflow, it’s not just small places like Queenstown with relatively few prospects. It’s places like Ballarat, Bendigo, Shepparton, Mildura, Townsville, Cairns, Mackay, Toowoomba etc etc… areas with populations from 50,000 to 150,000… I would argue in many cases that property in those areas is just as, if not more, attractive than those in Frankston, and with better yields. Have you had a look at demographics? It’s clear that population in many regional areas is GROWING, not declining… I’m not sure whether you’ve looked into it or not, but the world does extend beyond the borders of metropolitan cities…

It is possible to invest for a combination of yield and growth… horses for courses really, and neither is wrong…

Cheers
r

Very well said Rowan… by the way kay, the fundamentals between investing in Ballarat 5 yrs ago and Queenstown now aren’t even worth discussing… you’re not comparing apples with apples… price alone isn’t a reason to buy anything.

cheers
r