jthomo wrote:
The U.S. currently has a 15% foreclosure rate compared to Australias 1%. The only worse to come is going to be for those who aren't currently actively building their portfolio as we speak. You don't see Woolworths frantically selling and reducing debt. Their obviously building in rural mining towns…My opinion only.

Homo : it is…[Read more]

Rudi, – In september the first wave of 6% interest mortgages will reset to the ( by then ) 10% interest mortages. That's 4% more interest , which equates to more or less 100% extra mortgage stress. ( you can do the maths if you want ). People cannot pay this. This will go on until July 2009 when most of the 6% fixed mortgages will have reset.-…[Read more]

the soap pyramid scheme is one of the oldest. It relies on the entry fees , not on the sales. You pay them money, they get rich. You don't sell anything because products are 20$ instead of 5$. You try and sell to family, they buy 1-2 , you start to ripoff other family until everyone hates you. You lost 1000$ and your family. Don't touch it.

360$ a week for a 350.000$ loan at 10% interest rates.Please explain how you do that. Also , please explain how you will do that when you rent it out.

Azalia : Remember, the buying part is the fun part.

Also remember that if you subdivide you may have to take care of complex sewage, road frontage, trees , street lights, and if you want to do larger projects it could take years before you dry certain parts up , or you might need to build bridges etc. In any case, even a cheap battleaxe subdivision can be expensive. Maybe you can think about strata…[Read more]

well he can buy now for 350.000, or he can buy the same house in 1 year for 200.000.Hence my question : Why would you buy now , what you can buy in a year for half the price ?If you want to waste money, there's better ways, and more enjoyable too, buy a boat or do a 10 year holiday or something, you'll lose the money too but at least you'll enjoy…[Read more]

so you have good rents, but you can't pay your properties ?What exactly went wrong, we need some numbers

Keep in mind that an average subdivision can cost up to 80.000 or more dollars.Don't expect it to be 5000 dollars

why would you buy now ?Rent, then when prices are lowest, buy. It's really a nobrainer.

I'll answer for the 'average australian' : Scenario 1 – Go bankruptScenario 2 – Go bankrupt ( because scenario 3 would come into effect )Scenario 3 – Go bankrupt ( due to negative gearing and negative equity )Scenario 4 – Go bankruptScenario 5 – Go bankrupt ( because you can't sell it in this climate )

jamiedellam wrote:
OK guys I have finsihed my first deal , Paid $1000 depostit  $75,000 in total……. 10 week settlement(to find a tenant) and reveiving $750 per month for 5 year lease ( first month free) and it goes up by the cpi every 6 months. It was a 41sqm retail shop and i have leased it to a patio company.

you know that leasing out a…[Read more]

Don't buy at auctions. The price isn't nearly what it needs to be to be worth it. Better to take your time, do inspections, visit the place, and buy pre-auction. Auctions are merely a way to get rid of places that won't sell using normal ways ( for a good reason ! ) and thus always have problems. You get 10% discount for this on the auction..…[Read more]

Rudi, by all means, stay out of real estate. Get 8.5% from the bank on your cash, and buy some toys for you and your kids. You will burn yourself if you play with matches. You will need a LOT of luck if you buy anything now, more than I can wish you. One thing I can guarantee you is that your house will lose at LEAST 10% value in the next year.…[Read more]

Rental income per year = 23400holding costs per year = 50.000 why the hell would you buy either of those places ?

mpertile : It does help him, I just told him what noone else will tell him : Reality.Whether he accepts it is another thing.

CHIS wrote:
Is there anywhere on the internet where you can track property prices in cities and regional Australia over the years?

Yes : http://www.oldlistings.com.auHappy digging.

Set your minimum, don't set your limit. Houses are still overpriced at the moment, don't get suckered in to a falling market. There will be many better deals than this one. Like I said, offer 60% of what you think it's worth ( that might be a HUGE difference on what they WANT for it, tough luck for them ). If it's 'advertised' at 800.000, offer…[Read more]

The reason there's less listings is simple : Sellers are turning into Landlords in order to at least get SOME money back, they have given up trying to sell , because there's just not any buyers. This pushes rental prices down.So now, both rental prices AND house prices are under fire, which will lead to even lower houseprices.Don't you love the…[Read more]

Don't worry about bidders. There's no buyers. You will be the only bidder. If there are other bidders then you should think the seller is bidding. If you don't get this one, go for the next one. Remember that :Houseprice = Second highers bidder price + 1$So, if the second highest bidder bids 200.000, you will have to bid 200.001$ and that makes…[Read more]