JPS25            I presume you mean, you paid your monthly repayment at the end of July ?Yes your interest is for 2009/10             Loan cost so deductable over 5 years. Your name doesn't matter its all on your husbands tax.bye

It doesn't pay to say something negative about property investing on this site  – you get shot down in flames.Problem is property investing has such a wide range of people with different amounts of debt and different wages etc.I still am of the opinion that housing is going down big time over the next few years.But, I still have kept my…[Read more]

fWord,           Good post, agree with it.As you suggest supply is fairly finite, except if people start selling ( cannot afford repayments and will move back home etc ), this then increases supply, thus reducing housing costs ( people see more houses for sale, less hurry, prices drop etc).Probably demand is related to the supply and as you say p…[Read more]

DWolfe & reddahaydn,                                        Note I said flats, not townhouses or appartments. I was just trying to say "not cheap ugly flats ". I take your points about all new appartments ( this is sort of what I meant to say about modern small living areas ).                                       …[Read more]

Sorry,         Just had to post this.http://www.moneymorning.com.au/20100608/house-prices-at-maximum-risk.html#more-3296Always a good read is the moneymorning post.devo76Canada is not in dire financial troubles, it is like Australia in many ways, both have high housing costs, both are reliant on mining, both have hots of space with nothing ( ours…[Read more]

DWolfe,              Hi again,Superannuation, is a good thing. The main advantage being no tax after 60 or no tax in the drawdown time for SMSF etc.Whilst I do have lots of houses that pay lots of rent, I do regret not having the knowledge ( this was a long time ago before SMSF etc ) to put all my houses into SMSF it would be so good not to pay t…[Read more]

DWolfe,              Nice to hear from you.regarding China will not stop buying our rocks. http://www.businessday.com.au/business/markets/asian-stocks-drop-on-china-demand-concerns-20100604-xjjp.htmlBut that's just a taste of what's to come.regarding Oct 09 downturn for all Australia. Well you are correct that Melbourne kept booming, but I still…[Read more]

June update.Interest rates up 0.25% in MayInterest rates steady in June.Reddahaydn,                        Congradulations you have made some gain. good on you. Now sell.Has anyone been taking notice of the latest headlines about house prices??

Dan42,              This is not the answer but gives a clue.http://www.brisbanetimes.com.au/business/foreign-buyers-inflating-market-20100326-r378.html

Two month update:March – Interest rates up 0.25% to 4% – MarchDemand for new home loans dropped 8% in Jan – News.comFujitsu Consulting – 218,000 borrowers into severe mortgage stress last month.March 29 – Glenn Stevens " I think it is a mistake to assume that a riskless, easy, graranteed way to prosperity is to be leveraged into property. It isn't…[Read more]

Agree with all,                         As stated its a matter of Horses for Courses. If you are a go getter then go interest only and max out – hope that capital gains brings in the big bucks.If you are cautious and like to sleep at night then go P + I and make some slow gains.There is no correct answer, its easy to be correct years down the…[Read more]

Snoopy 11                   I have 3 properties in that area, one is coming up for new lease, but will be advising current tenant to leave, they are a pest. Asked agent about current demand and told still good demand in Bracken Ridge ( current tenant to leave ), will soon see how it goes ?

Government still trying to keep the housing buble going by encouraging Chinese to buy expensive properties.http://www.smh.com.au/business/property/australias-mortgage-debt-blowout-20100224-p1ex.html

Dan 42,              Thanks for being so keen to chase up my earlier blogs. It shows that I predicted house prices to fall earlier in the year 2009 but then interest rates were dropped keeping prices up together with first home owners grants etc.               Note my heading is Oct 09 the beginning of the house price falls not this is the poin…[Read more]

Feb Update:Interest rates left on hold – despite 100% economist predictions ( and banks increasing rates more than reserve bank increases for Dec 09 ).Wespac – Loans to require greater deposit 87% from 92% loan to value ratio.Rental vacancies rising across AustraliaNew homes sales down 4.6% in Dec.Dan42 – OK so 10million dollar houses have gone up…[Read more]

Ben,        Have been a property investor for over 20 years and yes have made good profits in the past. Still own properties but with my current outlook I own them, do not have large debts on properties and enjoy the rentals as profits.If I thought properties were going to go up at 7% a year I would buy another 10 of them and make millions. But th…[Read more]

Ben,        Your whole theory revolves around borrowing cost being low, growth being high, legislation not changing, etc etc..Do your figures with higher interest ( this is a certainty ), try growth of 2% over the next 20 years, housing costs like rents, insurance, maintenance, repairs, etc etc outpacing rental growth into the future and sudden…[Read more]

Jan update.No Reserve Bank meeting this month.First Home Owners  – Existing House bonus reduced from $10,500 to $7,500                                        New House bonus reduced from $14,000 to $10,000Headlines of Plunge in home loan approvals.

See my post October 09 Property Crash BeginsNote each month has another reason to sell now or miss out.