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….

Hi simple

commentators 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 that is that we can try and improve ourselves so that equation is better for us.  So far over 30 years over ownership in 2 states, I have never lived in a house that cost more than three times my income.  Houses have gone up and my income has gone up.  Waiting for the market to come back to meet my salary has never entered my mind until I started reading these forums.

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 draw down,  and you have no other funds ,  you are well into fully extended with mortgage insurance territory.  That is a risky place to be especially at the moment…..but that may not worry you.   If things are that tight I wonder of you would be able to fund all the buying costs for property 2 and still satisfy the finance parameters (broker types here may want to comment).    Sounds like to big a stretch to me (until you create more equity or more deposit) but if you post some actual numbers maybe they could give you a hand.

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………………………..

"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 floating mine in the harbor of peaceful co-existence. It is dividing society into 2 groups – investors and renters.  "  actually there are 3 groups ,  quite a few people own their homes as well.  My kids for example have somehow (magically and against the forces of NG evil) managed to get into their own places.   I thought they had just shown a bit of spine and got on with things,  but I must congratulate them on defeating the forces of evil.   Parts of Europe where there is no -ve gearing far more resemble the 2 class system you describe.   I seriously doubt removing NG is the panacea you want it to be ,  but I guess anything is worth a try ,  and it will at least remove one more excuse for why some people get no where and others progress.   Thats just me though ,  I have always thought that my problems are for me to sort out ,  and if (for example) I cant afford to by a house the thing for me to do is improve my situation and do the things I can control,  rather than waiting for the government to "fix" it for me.

that costing is pretty much gibberish and doesnt really elaborate your point

there 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 something and I dont,  so rather than me stepping up , they should be pulled down.    With the Labor social engineers in power you will probably get what you wish for in due course.   Once those undeserving investors are out of the way things will be much better,

I dont know much about west heidelberg so I cant really comment.  Reservoir I got to know as we spent a lot of time there and about due to reno sourcing and related actvities.  It seems a solid place to invest to me.

Appreciate you comments re holding but ity really depends on your stage of life.  In the end everything isnt about monety and eventually its time to get out.  With the job change its now seems opportune to exit , do the work and come back to a simpler life

Good luck with your research, you seems to be on a good path

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 Thornbury

350k 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 reduce maintenance headaches ,  or get some recommendations for professional property managers.  

I was about to sell a couple of the places in the outer burbs to do more renos around Thornbury,  but I found out this week I will be going overseas to work again for a few years , so that is the end of property for me for a while.  Just arguing with myself now whether to hold and manage from OS or sell up the lot …..not including Thornbury,  thats reserved for one of the kids to buy when ready. 

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 before you do that.   Accidentally recieving material and then publishing it not to the intended audience could leave you open to legal action.  Understand you are angry,  just dont do yourself more damage.

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.