Great thread! I need to refresh my economic knowledge. But if the world was to go into recession, what effect would that have on interest rates? I think it will reduce the rates to entice investment, is this correct? I guess this is what has happened in the US.

I agree that the Australian economy is growing very strongly, but you can't ignore whats happening in the US and the ultimate effect it may have on us.

Does anyone have any forecasts for interest rates?

Great for Adelaide. Had a bit of a look at the market in general, but looking at a property in Brompton at the moment, not far from Prospect Moose. The property I'm looking at is a standard 3 br house about 350sqm 7 yrs old. The suburb does contain lots of old houses, and there are many new houses in the area being built – will this increase the value over the next 5 years or so? It is about 10 mins drive from Adelaide city.

I'd suggest to do it in your individual names, setup a common law partnership. Businesses generally go for the company structure to get the 30% flat tax rate. If you hold a property for longer than a year in your own names (rather than a company), you will have access to the 50% discount on the capital gain (not available for companies). This may result in a lot of tax savings in the long run, given that most property investments are negatively geared, the advantage of the 30% tax rate isn't that much anyway.

Over 15 years the property value growth will be a lot, and thus that 50% discount may come in very handy.

I think its a decent idea. Although doesn’t the gold coast already have an oversupply of apartments.

Sounds similar or like an alternativer to a care facility – I guess without the care but everything else provided. Older people don’t want to worry about the complexity of costs, and thus will be a good alternative to a care facility. I guess when they get older, and need care they can simply move out.