Forum Replies Created
If its anything like the Ned Kelly film with Naomi Watts and Heath Ledger. I will use that $10k for something else.
And I also like to have control over my money. Its a bit like going to the casino and putting it on red or black – it could go either way.
My Guru is Jan Somers.
No high priced seminars, no wrappacks, no interstate rural properties. Growth v Cashflow balance.
Just good common sense. Her books are a MUST read. Follow here strategies and You cannot go wrong. Read the book on case studies. See how others have succeeded.
I wonder if any of those people are on this forum?
My reasons for why this is NO different to other Booms. I am not saying prices will come a crashing down all I am saying it that growth will be very low and may start to fall as we experience a soft landing. Therfore its not that good an idea to hold expensive negative geared properties at the moment . Dont Over commit.
<<<<<* The ease of gaining finance- >>>>
Yes , its easy to gain finance. But at some point you hit the wall and banks will not lend you further money. We are also experiencing historical low interest rates.<<<<<* the internet… >>>>
Is just a marketing tool. Instead of visiting agents and looking at newspapers you can view sites on the internet and use forums like this to spread the message. You can even buy interstate without seeing the property except on the internet.<<<<<* globalisation >>>>>>
I work for a US based global company. I have colleagues I work with from 15 different countries – Asia, EMEA and latin America. I am married to a candian. Not sure how this effects the property market except that its easier for ex-pats to buy while overseas. Non of my colleagues have ever mentioned buying property in Australia.
Are there not stats that suggest properties in Australia are overvalued by world standards. There are also barriers to buying in Australia for foreigners – they still need permission.<<<<< more gender equality:>>>>>
Males and females can still get greedy and over commit. They see their colleagues buying up and borrowing and think – why not.<<<<<I do not believe that this boom and other booms can be compared. RE was once monopolised by higher income earners, and was much less regulated. >>>>>>
And these same people bought IT stocks. You could buy stocks easily on e-trade and those internet based brokers. The internet was going to change everything.
All I am saying is dont overcommit and when buying, factor in a 2% interest rate buffer in your can I keep the property long term scenario.
Originally posted by yack:“In the absense of a specific provision governing the time of acquisition or disposal of as asset, the following rules apply;
1. If an asset was acquired or disposed of under a contract, the time of acquisition or dispoal is the time of making the contract
2. etc
3. etc”So I reckon the contract would state the settlement date or date the remaining funds are due – therefore the contract to me states the date when transfer takes place.
bruham – well done. I agree its important to reward oneself – its not important the size of the reward either.
Congrats
This market is different from previous markets – thats what they said about the IT Boom. And it came a crashing down.
My IT based shares are still recovering!!!!!
People still get greedy – overcommit and come a crashing back to reality when interest rates start to rise. This will be no different.
I agree. In addition to sea chnagers they were referring to inland lifestyle towns eg. Daylesford that have services.
I suppose they made the assumption some people are sitting on a $600k PPOR and downgrade to a $300k PPOR.
Bruham
Isnt driving taxis like being those old ladies waiting for life to pass them by.
Ah well each to their own. Night shift starts about now. See ya.
Wooooo – an office chair – must have been a BIG win.
Congratultaions Greg – keep up the good work.
A couple of quick questions –
1. You got contingencies if interest rates go up 2% over the next few years?
2. You had many tenant hassles? How much time do you spend in addition to teaching?
3. Had much in the way of repairs?I too have read Ordinary Millionairres. You would have noticed there was about 10-14 different stories on how each had made at least $1m from property.
Sure some did it that way – others did it a different way.
At this stage of the property cycle (historically low interest rates) I would not do these types of investments.
I prefer to invest the Jan Somers way – she was chapter 1 or chapter 2.
From a Master Tax Guide – 1989. the data may be wrong – but i doubt it.
“In the absense of a specific provision governing the time of acquisition or disposal of as asset, the following rules apply;
1. If an asset was acquired or disposed of under a contract, the time of acquisition or dispoal is the time of making the contract
2. etc
3. etc”So my reading of the above is that a normal sale contract would state the date of acquisition/dispoal. And that date stated is the settlement date.
Trying to administer contract date would be a nightmare for the everyone when settlement date is much clearer.
If anyone disagrees let me know, but its clear to me.
I will check with ATO.
I believe its settlement date. You still have all the rights and responsibilities of ownership till settlement.
Once I know I will post reply.
Yeah. That worries me. All these people buying unseen based on purchase price.
I have enough to worry about with good investments locally let along ones from the other side of the country.
These are my current issues;
1. Need to piant front and back windows. Painter $900 or me $200.
2. Carport in one unit on last legs. When do I replace.
3. Same unit needs to be painted.
4. Another one needs to have guttering replaced in backyard.
5. Chasing rent after tribunal rulingImagine the hassle trying to resolve these on the phone.
In 5 yrs time will these people say the benefits (positive cash flow and no growth) were worth the cost (tenant problems, manage property remotely).
I doubt it very much.
<<<<<What is your advice – do I study the market and get frustrated at not being able to buy or do I continue to build my knowledge base and go out there in 12 months when houses will probably be a touch more expensive?>>>>>
As I am not a broker, my advice may be a little different. Learn what you can and invest in 12 months. I see the market easing in the next 1-2 years. Be patient and dont overcommit yourself.
They are not desirable properties for me. If there is a risk I will end up with nothing as I cannot insure for its loss – I would not invest.
As for an area with undesirable tenants. I want to sleep at night. I would rather invest in a property that caters for average incomes. I want to sleep at night. I invest to make my life easier not more stressful.
I am still a little confused. What is the sale date in this case?
Contract date subject to finance and building report 12 June 2004.
Contract now unconditional 2 July 2004.
Settlement Date 15 August 2004?
What is the date for CGT purposes?
Do mortgage brokers provide that information? If not, should I find one who does? That way you know you are dealing with an open broker. Is that correct?
Thanks for your advice. I will bring it up with my solicitor. I trust my solicitor and the broker is an ex-solicitor colleague of his.
I am not easily fooled – well I hope. But you never know. If I am to use a broker it will be still with my bankers (Comm Bank) and i prefer to use the other major banks. The other banks need to attract business by offering higher commissions so I am somewhat dubious. My brother got caught I think.
Go to the casino and put it all on RED.
Well thats not what I would do –
Nor is Super. I dont like Super. Only worth it if your close to retiring ie.2-3 yrs away. My super after working 15 yrs is a hell of a lot less than my 7 yrs property investing. And I mean a hell of a lot less.
Put it into your PPOR redraw/offset account.
