I beleive the holding costs while in construction phase are part of the cost base of the house.   Happy to be corrected but thats what we experienced only we built to rent.   If its not so its off to the ATO I go….

CHIS wrote:
I like the analogy with the hole. I think it would be smart to stop digging. It's a shitter when you like the real estate

yep , as soon as you become emotionally attached its becomes difficult.  But your plan has some merit if the place is marketable and you really , really want to be there long term.   If its worth it to you th…[Read more]

Hi simplecommentators are starting to see more +ve (less -ve?) signs ….or saying that perhaps we have been overdoing the gloom and doom.   This thread started mid 2006 and has been feeding the gloom since then. re the 3-4 times wage rule,  its quite possible to by a modest home for 3-4 times a reasonable non minimum wage.   The other side of tha…[Read more]

your thinking and learning so its not all bad.If the block owes you $280k now and you build a house, thats something like $420-480k of debt (havent said you have other cash).   Is that a marketable property in that area? What sought of rent could you get in the area? and is there much demand?  Is your taxable income high enough to get max bene…[Read more]

ahhhh…..the plot thickens ,  I thought you may be putting more down but wondered why you just didnt split the deposit if you wanted to get another property (and wear the morttgage insurance I guess).  The contract is different from the source of funding,  you didnt contract to pay 20% deposit did you?If your finance organisation lets you do the…[Read more]

there is nothing wrong with proceeding with the next deal if it stacks up and you have assessed the risks…..however….where will the equity (difference between value and debt) come from if you have just bought on 5% deposit?     Also consider how far you can stretch your self and can you survive if things go pear shaped for a few months  (los…[Read more]

steveknobel26026  why do you feel the need to cross post 4 times in different forums, and twice in one of them, with the same post………………………..

The General wrote:
Hello Am humming and harring about whether to purchase Landlords Protection insurance for one of my ip's.What would you gurus out there recommend? Purchase or not? I haven't had any issue thus farbut then again, that is what insurance is for isn't it?Your help with this issue would be greatly…[Read more]

"Investors now make up about 20% of tax payers but unfortunately, some are not paying any tax at all. All because of a rort called NG:" ……..and some pay heaps of tax,  like me for instance….whats your point/……you seriously beleive people -vely gear to the point they pay no tax?…..thats very naieve."NG is like sugar coated poison or a…[Read more]

judging an idea by considering two extremes ("rich' people and then an entry level person) isnt really logical,  as the bulk of people are in the middle.mpertile,  your idea is quite valid and is in fact how things work in many parts of the world.   It is often balanced with other taxation measures to stop the very wealthy benefiting exc…[Read more]

that costing is pretty much gibberish and doesnt really elaborate your pointthere are benefits to those that take risks,  they will come via tax, capital gains or rents.if you by your own place the only risk is your ability to make the mortgage payments you sign up for and you pay no CGT.really just sounds like the politocs of envy,  they have s…[Read more]

home price is only 8 times if you wont compromise and want everything now,  its much less if you are prepared to do that.  Still tough at 8.5-9.5% starting out….and via perverse bank logic you will probably pay the higher rates if you are just starting out.I'm sitting in Europe at the moment and looking around here it doesnt seem out of kilter w…[Read more]

mrkueh80 wrote:
so do you think Reservior good? compare to west heidelberg…I am still finding the property about 300-350k range and preferably house or unit (not apartment) as i think it will hole the value even market crash or recession. and i aslo believe with those range of price, it is achievalbe to get double in 7 -10 years. (as you see…[Read more]

maree_bradross wrote:
Hi Yarpos,Just out of interest whereabouts in South East (we are in Aspendale). Cheers

Hi,  that one is Frankston , off Skye Road toward the Mclleland Road end. 

I dont know that much but am happy to share experiences +ve and -ve.I have 4 properties at the moment , all in the east and south east , except for a little unit in Thornbury350k and 350 week , is readily achievable in many areas,  so you shouldnt have a problem.    I guess looking to manage from afar you will be looking at a newer development to…[Read more]

i have a property in an adjacent suburb

dixonhomesarescum:"Before I log off, I should also say that by mistake, Dixons emailed me a 2 page list of homes under construction with major building defects, and locations of each property.. This was pretty scary knowing that so many homes could be built so poorly. I will post this list on my website when it is online."You need to get advice…[Read more]

reddy wrote:
HI EVERYONE,I NEED HELP REGARDING MY PROPERTY , IN OCT 07 I BOUGHT A PROPERTY IN HOPERS CROSSING IN MELBOURNE WHICH IS MY FIRST PROPERTY. THE RENTAL MARKET IS GOOD IN HOPPERS CROSSING BUT CAPITAL GAINS ARE LESS I CAUGHT UP IN A SITUATION WHERE  WETHER TO KEEP THIS PROPERTY OR  SELL THIS PROPERTY AND BUY IN GOOD AREA WHERE CAPT…[Read more]

you have a great attitude,  the sooner you get away from  the phoney money machines and start building for yourself (again) the better.   Good luck and keep posting/questioning.

Sav wrote:

Scamp wrote:
You're asking the wrong question. The right question is "How much should I borrow to be able to safely survive a depression ?" The answer is well-known : maximum 3 times your gross wages. So if you earn 50.000, you should borrow MAXIMUM 150.000$, and make a deposit of 15.000$ cash.

What can you buy with 150k?

wasnt…[Read more]