I’m with you Kay, i wouldn’t be wanting to be highly geared in such an uncertain market. If it was 1999 then go for it but its now 2004 and the market has run its race. Remember with leverage you can be in big trouble should the market drop 10%. Ouch, that will realy hurt in fact it could send people broke if they too highly geared, and suddenly struggle to make repayments.

regards westan

Hi guys

i think if you can buy properties that are really 15% below market value why aren’t they buying them themselves and just putting them back on the market ???? I know in NZ there is a company that markets itslef as finding properties 15%-20% below market, all they do is obtain overinflated valuation.

I’m with Myydral too good to be true.

100% finance is basically a loan for the full cost of the home so you don’t need to put in a deposit.
regards westan

Hi all

Slumlord, thats interesting to know i hope your right always nice to have made a little more. I was told that the property in Quigley st (3brm would sell for 95-100K) Anyone on the ground there i’d be interested to know if this is fair. It’s rented at 135pw.

setmefree, it wasn’t really Bills opinions that got him into major disagreement with those on the forum, i don’t really want to reopen the issue but lets say Bill leaving the forum had nothing to do with his negative opinion of the market. You are right we are all entitled to our opinions but just on that the more Gogmatic we are the more likely others will critique the opinions. This would be a very boring forum if we didn’t have different opinions and thats the way we learn by discussing them.

regards westan

Hey guys these jokes are racist !!! so lets hear some more.

After living here for 6 months i’ve worked out that there are two types of New Zealanders. Those that are living in Australia and those that want to live in Australia. [biggrin]

just joking Muppet- i love living in NZ.

regards westan

Allan

let us know what you find out, its something i’ve been hoping to spend more time investigating also.

regards westan

Hi muppett

i must have missed that one in Gore, i must be spilling isn’t it good to see ESC charge a reasonable fee. I can’t believe they charge $3995 usually. Ouch

Del

i couldn’t believe it when i saw that Coronation street was still on TV in NZ (but i think they still air it in the UK) Luckily i’ve been too busy to watch it, actually too busy to watch tv except the Aussie rules highlights once a week , even have some Kiwi friends call in to join me when its on. And Muppet i haven’t seen the fine Kiwi Drama shortland st (not really my thing i guess). Muppet i worked out why they filmed Lord of the Rings in NZ , they could save money by not needing any make up on the extras (thats the orc’s) [biggrin].

regards westan

Interesting storey Muppet

the NZ film industry is going from strenght to strength to strength. Its not Just Whale riding and Lord of the Rings. Now we have the Nadia series and many more (notice i say we, ooops i mean they). Its interesting the impact of Lord of the Rings Air NZ has painted planes out, its all over Wellington Airport, they even changed the name of NZ’s largest city to Orcland or is it spelt Auckland, next Helen Clark will change her name to Gandalf.

well done to the Aussies who have been buying in Taumaranui, i know one NZ spotter (no not us), well know to the forum, Name starts with Mini, who has been buying for her clients there,

regards westan

Hi Yack

yes i’m selling properties in Regional Vicoria and i would sell some in melbourne also (if i owned any there), the reason is to reinvest in NZ.

Anyway lets see what Neil Jennman has to say this time (here we ago again). Once again Mr Jenman shoots his mouth off with the very little information he has.

Lets critique his article
Firstly he states country towns do not have the infrastructures of the cities. Sure, prices may be lower, but so is employment, I grew up in Fairfield an inner Melbourne Suburb but i’ve also recently lived in the country towns of Echuca and Stawell. Sure these towns don’t have International Aiports but Come on MR Jennman what infrastucture are they really missing, we actually have Hospitals, Schools for our children, Police and even ambulances. Echuca even has McDonalds is that the superior infrastructure you are talking about. No Mr Jennman, regional and country towns actually don’t do too badly. In actual fact some people like it that their kids can ride their bikes on the roads without becoming road kill.

Mr Jenman you say Across Australia (and New Zealand) country property prices have reached unprecedented heights in the past two or three years., yes that is correct but is that wrong that in a society were prices are rising and the dollars purchasing power lessens shouldn’t property be worth more now that 10 years ago, I see no problem with prices being higher today. Mr Jenman you need also to look at what has been happening in country and regional areas sure prices have risen a lot in the past 3 years but what about the past 10 years you will find that they have probably had an average growth rate of about 5-8% PA. A lot of the recent gains have been playing catch up to their big city cousins.

take the Queensland town of Stanthorpe where prices have risen almost 20 per cent in the past three months. If it keeps going, that’s an annual growth rate of 80 per cent., Gee Teltra share went up about 10% in the past month thats an annualized growth of 120%, can you see how stupid that argument is.

Go live there by all means (if you can find a job) Neil i don’t know what decade you were in the bush but it sure isn’t recently there are many employment options , but perhaps not for people who write stupid acticles that steriotype country towns as backward and lacking opportunities.

Neil look into the facts a little more, sometime local (both city and country) are not always the most switched on people, they often miss opportunities right in front of them. Sometimes your life experience needs to be a bit broader to see opportunities.

Sadly Mr Jenman it appears that you look at the world from quite a different perspective than the way i encourage my young children to look at things. Rather that trying to find the negatives sometimes its good to balance it with, is there some opportunities as well.

Mr Jenman i can assure you there are great opportunities, some people will make Millions from Investing in Regional and country areas in the next 12 months.

but just be careful investing in the bush., i actually agree but you’d better be even more careful investing in the city.

Finally mr Jenman don’t judge the whole of regional Austrlia on one weekend in a small town in Queensland.

westan

Hi all

Del we done, i’m glad your plans are comming together.

Kay great to hear of your winnings in property, very cool. i sometimes think those on the forum that go around saying “don’t buy property” think we are idiots. The truth is i don’t think i’ve meet one person who is an idiot on this forum (they might think i’m one but thats not the issue here) The people i have meet are often following different paths but are all clever and switched individuals. Kay sorry i just sold one in St Arnaud Vic for only 50k and it was let at 120pw. Pity i can’t tell you about the rest that would be advertising anyway the returns aren’t as good as that one in St arnaud, the Horsham home is let for 155pw and i’d sell for 105k, better not go on or i’ll get deleted. Anyway i think NZ has better prospects right now.

regards westan

Hi Dom

i go against the opinions here. i don’t see rates rising much at all in the near future (next few years).

Interest rates largely reflect both inflation and economic activity, the Reserve bank has made it clear that the reason why rates are rising has been the property boom, this is now under control.
There is a huge endevour by world Governments to keep the world in a low inflation range and while australia’s target of about 3% is being maintained there will be no inflationary pressure or need to lift interest rates. The economy which is travelling nicely is not in a boom patern and there is no need to slow it down by lifting rates. Lifting rates will raise the value of the aussie dollar once again something the govt doesn’t really want to do as our low dollar has helped us ride the major crisis in the economic world such as the asian meltdown a few years ago.
If the property market went into freefall which is something the govt doesn’t want and i believe would lower interest rates if this happened. Australian interest rates are already just about the highest in the developed world.

Look at where 5 year fixed rates are , clearly the banks don’t expect interest rates to be too much higher in the near future

regards westan