i think something that hasn’t been mentioned but explains why people would pay, for example $200pw rent, is lifestyle.

lets say someone wants to live in a nice, near city, cafe strip townhouse in perth, they pay $250pw. the place is new, very nice.
if they wanted to buy the same place it would sell for approximately $350000+. So, because i don’t know the exact sums to work out principle and interest, lets look at interest only payments… thats $403pw at 6% interest.

now, this obviously isn’t going to be close to +ve cashflow, but there are investors out there that don’t look for the properties we look for, or are investing for CG.

$250 or $400pw to live where you want, it’s a lifestyle and personal choice.

well it’s a forum, so i’ll add my little bit.
my wife and i are investing and have been for about 3 years now. our good friends, are still our good friends. but in what some have said, you lose friends, in our case it’s not so much losing friends as it is not seeing ppl as often as you used to. some friends we see every 3 months or so… and it’s because we are dedicating all our free time to learning, researching, reading, staring at a computer screen replying to forums [8], budgeting. so when some friends want to go out and spend $ doing something we are impartial to, we decline. after a few “no thanks, next time”‘s you stop getting invited, which unfortunately, is not what was intended.
this is something we are currently trying to become comfortable with as we are not going to change our minds regarding investing. one is emotion, the other, is investing. just make time to see friends.

whether i am just repeating what has been said, i think where some of the confusion might be in the whole +cf and -cf saga, is that one person is thinking cashflow in terms of after depreciation and deductions and the other (SIS) is talking about rent versus interest, before expenses and depreciation, this is how i understood what he said.
and hey, if you can legally reduce your tax to 0, then there is nothing wrong with that. ideally, while we are setting up investment portfolios, wouldn’t that be everybodies ideal situation, all their income paying off there debts until you are taxed for MAKING MONEY.
what a shame. making money……. []

delayed gratification isn’t it, we are doing the same, all with the goal of enjoying life to it’s fullest (with no worries of working to make a dollar).
the investments can work for us

no offence kay henry, but you seem to take posts very personally. i didn’t see someone call people who read papers ignorant. all that’s being said is, never to follow what is said on tv shows and headlines papers 100%. you need to do your own due diligence and research. same with reading books, or ppls posts. the only thing is the %age of ppl who watch tv and read papers is a lot greater than those that visit property forums and read property related books, therefore, there are more ppl who are susceptible to what can sometimes (not always) be hype, or an excuse for a story. those that don’t follow the market but have come into some money, be it super, or inheritance, or lotto, my just go on a decision related to something they saw on TV.
i think those that visit this forum have the knowledge to do their own research and whether you watch tv or read papers or live like a hermit, will make their own decision.

a relative of mine believed you had to stay in the property for 12 months, but then rang to find out about it, and it just had to be proven that you had lived in it for a period of time, a couple of months after buying the place, he rented it out, and everyone was happy. examples given to him by the FHOG ppl that he spoke to was that you had all your bills forwarded to your new address, etc.
he checked first to make sure he wasn’t breaking any laws, and they were happy, now it’s his first IP. and he moved back in with his folks.

some taxi driver i know work with another person, two ppl, two 12 hour shifts, over 1 million kilometres per year. if you’re willing to work your butt off, you will get paid. how many ppl do you know that work 12 hour days, 7 days a week, almost 365 days of the year…????

then again, who’d want to!? bah!

try another lender?

or use a mortgage broker…. they normally have friendly acquaintances with certain members of the lending industry….[]

or if you like, i’ll buy your perth property from you…. $10000, seems fair….. bit of money in the bank….hehehe

devilcv8, don’t spo’se you drive a monaro????

being units in a complex, did you get a depreciation schedule or similar from the agent?
if so, how does that affect your cashflow?

the deductions on tax for the interest alone would be approx $35 per week at the 30% tax bracket. and then you would have the depreciation on a fully furnished unit….

i hope i did my sums right.

if you don’t intend on selling a property, isn’t it wise to use depreciation and tax deductions to their full advantage? obviously it depends on each persons strategy.

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