blogs wrote:

Scamp wrote:
The truth about the australian housing market :The risks are huge, and will soon become more than clear to a lot of households when their lowest-ever 5-year-fixed mortgages will go up from 6% to 10% interest rates this september 2008.This huge increase results in average monthly mortgage repayments increasing from…[Read more]

ummester wrote:

superhoops wrote:
Historically there has been a correlation between a recession, lower interest rates and lower inflation. No country with an entrenched inflation problem has significantly reduced inflation without it occurring in the context of a recession. Therefore whilst lower interest rates do not decrease inflation…[Read more]

ummester wrote:

superhoops wrote:
The RBA did the same thing in the early 1990's when inflation was around the 7% mark – they lowered interest rates by 5% in the space of 12 months and furthermore they dropped the rate by a further 4% over the next twelve months. During this period inflation fell to around 1 -1.5% by early 1992.Thus h…[Read more]

ummester wrote:

superhoops wrote:
Whilst Australia's economy is strong it certainly is not immune from world factors, therefore anyone predicting that Australia's interest rates would continue to rise whilst other countries interest rates remained stagnant or even fell has little insight into economic theory. Therefore any advice that they…[Read more]

Scamp wrote:

attrill wrote:
I have 2 loans fixed at 6.65% until 2009 when they will revert to the prevailing rate. In the last few years the rents have risen to a point where these properties will still be cash neutral. This is more a case of luck than astute financial planning.

Many are in your situation Attrill. Buyers know this, and are…[Read more]

blogs wrote:
Mister there are so many things wrog with what you have said I dont know where to start. Not very bright are you….

Rather patronising comment don't you think. 

Zoe,I live in Leichhardt and we are paying $500 pw rent on a property (2 bedroom) that is worth around $800K not sure what the land would be valued at. I would assume not much more. We are currently renting our two bedroom apartment in Stanmore for $420 per week. I think you said you were on the north shore – those rents are cheap for quite large…[Read more]

Zoe,Based on your figures your unit has a Gross Land Value of $250K. Therefore if you had this as your only IP then you would not be up for any land tax as it is below the $359K threshold. However, I am assuming that you have at least a couple of IP's that push your combined land values above the $359K threshold. I am just trying to get around the…[Read more]

Zoe,How many units are in the complex of you IP?I own an IP apartment in Stanmore and the Gross Land value is $50,140. There are 24 units in the complex, therefore I am assuming that the overall land value is $50,140 x 24 units which totals approx $1,203,000. Not sure if this is correct as each of the apartments may have a different overall land…[Read more]

Zoe,I find it quite remarkable that a $1.7million property returns only $26K per annum ($500per week) in rental income – that is a 2% yield. Are you sure those figures are correct?Superhoops

Good post neilvs. I have read articles by "economic experts"  eg. Robert Shiller who steer away from property and look at other investments such as the stock market etc. that provide better returns. The suggestion is that property only provides a return of 1.8% pa, which is obviously lower than the rate of inflation. They don't suggest that you…[Read more]

Hi Michael,Mosman is an extremely nice area on the lower north shore with good public transport (buses and ferries).  As far as property prices are concerned, not sure how much you are paying, but Mosman is an area that will always be in demand and will generally always go up in value as it is so close to the CBD and the harbour.cheersSuperhoops

Thanks  for your advice. Sorry Elka, I should have mentioned that I pay off our credit cards each month so no interest is accrued on these. This $3300 also includes buyers edge interest free period at the moment which will run out by June – by then it will be paid off.Terry would you suggest using the $40K equity plus $20K (of the $30K) in the…[Read more]