http://www.smh.com.au/news/business/fincorp-investors-face-50m-loss/2007/03/30/1174761739499.html
Big guys started sinking. Small begining of a big problem…

Guys, not to scare anyone, but you do know that ATO have and eye on financial forums?
May worth keeping it in mind when quoting figures. Not that we talk actual figures here, we just speculating

Actual $ that you earn are subjective. I know people on $150K and still have PPOR not payed out. Nothing flash, just an ordinary $400K property.
So it is how you spend and where you spend money rather how much you earn….
Anyone care to comment?

wealth4life, about kids, we still do not have any (my fiancé only 25) but our plan is same as yours, to be in the position to offer help when they ready. Say, we will match what they put down as deposit, whether it is the first car or house. BUT no freebies, easy money are bad. Easy come – easy go. 99% of people will loose what they get easy while they are young. It is different when you live them some assets after you go and they already turned 40-50yo.
[biggrin]

I notice interesting tendency, I wonder if others will agree on it.
It seem like in Brisbane most of properties been sold are purchased as owner occupied. This seem to create number of properties that been sold still at “high” price as owners base decision on “feel’ rather than commercial since.

There are also seem to be few people who selling there’s IP in order to reinvest funds in other areas than real-estate.

Hello David,
Irvine is the nice place to be [biggrin]
Why would you look for funds in AU? In Irvine good 10% of piople in the shopping center can pull 2M out of there’s pocket on the spot! It is one welfy place.
I love it by the way.

L.A Aussie, thanks for reply on my calcs…
Your explanation makes sence if long term considered. This is what I am interested in so i will have to redo my calculations and practice a bit to see what figures do I get

Some simple mathematics here, some one please correct me here as I cannot get my head around this!
IP in our area cost for example $300K has return of $300/w minus expenses land and running cost you get about 250/week if lucky. Which is about 4.5% return on capital.
If I put the same money on my bank account I get over 6% return.
Now the big question, why would you buy IP if market is flat or growing anywhere under 1.5% ??

I am trying to keep a close eye on retail sales figure. I have access to sales $ of one of the upper marker fashion retailer chain ($1000 for pair of shoes).
So far market have not waken up for Christmas spending. Sales are flat.

Have downloaded some datasheets from RBA site. Made this graph to help me to understand/ predict economy movements.

According to what I see, we are on the beginning of the next “Major” interest rise cycle. Any comments anyone?

IMHO a lot of people do not care/think about the long term result of action taken.
Most of them never even realize than money can be made by simply working hard and allocating funds to what needed rather to what’s wanted.
But the blame game start once people loose the grip and thinks go out of control.
It is always the same everywhere; you got to sit down with a pencil do some simple mathematics before you committed your self to significant expense. Just got to do the homework, same as at school

Aside of this small story about one salesmen who showed up at our doorsteps 12 moths back. He was offering us houses as IP to purchase and his company will provide rental guaranty for 3 years. Based on his words you can afford 10-15 IP without investing much money and relying on tax return and rental income. Sounded fascinating! I asked him to do some calculations showing how the funds flow including ongoing expenses of maintaining IP’s. Guess what? He could not put the figures together and he cannot do simple calculation of interest using calculator!!!! LOL. I could not believe it, he was trying to sell us 300K+ IP’s located in LOGAN
All you need is just to listen to those guys/advisers and do some simple calculations to see what it is all about
[biggrin]

D,
I must agree on the comment that money can be made at any market conditions and resi not the best area.
The company I work for looking for block of land to build new manufacturing facility with in Wynnum area / Brisbane. We recently been contacted by “XX” real-estate agent. They found the block of land for us for 1.3M, by the time we got our act together it went under contract for 1.2M. We manage to find out that other real-estate agent purchased the land. Guess what?  We been contacted be new proud owner “real-estate agent” who offered us the same block for 2.1M now . In reality land does worth about 1.3-1.5 and was underpriced by owner selling in the hurry. Not a bad way to make 800K in just about 4 weeks!
[specool]