The proviso being these statistics are valid, so my thoughts are that continued price rises are unsustainable. Firstly I wonder how many properties are being bought by overseas residents, given that Rudd relaxed the rules for marketing to, & purchases by OS residents. Secondly, I don't see incomes growing at the same rate. In fact wages in some in…[Read more]

I think Westpac could be jumping on the Macquarie & B&B bandwagon:

– buy up something which earns income at a good price (negotiate
hard). Toll roads, commercial property, whatever.
– ‘sell’ them into a trust.
– flog units in the trust to the superfunds – earn income from sales.
– finally, earn ongoing management fees fees fees for as long as
the…[Read more]

… ok, I guess the next thing is to find out minimum residential block size allowed.
Have you considered townhouses ?

Cheers, Paul.

‘The main thing is to keep the Main Thing, the main thing’

Hi Jobee,

The first thing you need to find out is what the current zoning is. This will set the limits as to what you are currently allowed to do with the property. Contact the council for details of what the zoning allows.
If the zoning doesn’t allow you to do what you want, you’ll have to go through the extra hassle of getting in…[Read more]

I guess that’s always an option – if people want to invest in retirement villages or similar, you can always buy shares in those listed on the stock exchange.
Of course due dilligence, research etc needs to be done as for any investment.
There’s a couple of biggies who’s shares have made large gains in the last year or 2 – seems quite a few people…[Read more]

Well, here a little story some might find inspirational ….
In high school I started buying stamps & coins from other kids. Got to the stage where some of the more enterprising were stealing from relatives, housebreaking etc. Of course to fund their smoking habits & perhaps booze (no other drugs in them days). I’d buy collections for a song &…[Read more]

Hi Nathan_b,

Can you email particulars please, I get delivery failure when I try to mail you.

Cheers, Paul.

‘The main thing is to keep the Main Thing, the main thing’

Originally posted by Nathan_b:
Hey paul
the unit in parramatta i might be able 2 help u out there i am located in baulkham hills.

Hi Nathan,

In what way are you offering to help out?
BTW, tried emailing you but got a delivery failure ….

Cheers, Paul.

‘The main thing is to keep the Main Thing, the main thing’

To answer your specific questions:

Yes, if interest rates rise & all else stays the same (rents & other expenses), then a +geared IP can go -geared.
Same thing if rents drop.
If you’ve got 20 of these you could be in trouble!

Rents are strongly influenced by rental property supply & demand, so just because interest rates go up, doesn’t mean…[Read more]

Hi everyone,

Many thanks for all your great ideas & suggestions. Will be proceeding on a more informed basis!

For those interested: the 2 IPs are in Sydney – Burwood & Parramatta. They are very nice units slightly better (only just) than hordes of similar built in these areas over the last 6 years. I’m expecting around 385 – 390k each.
Have…[Read more]

‘Good’ television = (hopefully) lots of eyeballs = high ratings = more advertising revenue = …. you know the rest.
Nothing else matters.

Hi there – would love to try this out but being on the rural fringes of Sydney precludes anything other than dialup.
Any chance of cutting discs for a small fee?

Cheers, Paul.