Self Funding property - Qu for Michael Croft
- Thread starter suejones
- Start date
Hi All,
Actually, the "interest free" period that Harvey Norman uses isnt interest free. You actually pay for the interest upfront. Thats why if you pay "cash" or "credit card" they will knock a coupla hundred off straight away depending on what you are buying.
The 27% that you pay if you role over the interest free period is just the gravy on the roast dinner for the finance company.
Cheers
Darren
Actually, the "interest free" period that Harvey Norman uses isnt interest free. You actually pay for the interest upfront. Thats why if you pay "cash" or "credit card" they will knock a coupla hundred off straight away depending on what you are buying.
The 27% that you pay if you role over the interest free period is just the gravy on the roast dinner for the finance company.
Cheers
Darren
Asy,
Ah... I digress. 'Up the duff' and any other saying can mean whatever you want them to mean. For example, when I call my friends, the first thing I say is 'Whaddaya doin'?' That's my way of saying hello.
In this instance, 'Up the duff' means that people have taken leave of their senses when they purchase computers at over inflated prices from department stores. But you knew that already.
(I think this is where I'm supposed to paste in one of those silly smiley faces that kids used to add to their letters in Grade 3, but damned if I'm gonna do that!)
Mark
'no hat, some cattle'
Ah... I digress. 'Up the duff' and any other saying can mean whatever you want them to mean. For example, when I call my friends, the first thing I say is 'Whaddaya doin'?' That's my way of saying hello.
In this instance, 'Up the duff' means that people have taken leave of their senses when they purchase computers at over inflated prices from department stores. But you knew that already.
(I think this is where I'm supposed to paste in one of those silly smiley faces that kids used to add to their letters in Grade 3, but damned if I'm gonna do that!)
Mark
'no hat, some cattle'
Not being known for my brilliance, intelligence or anything other than driving a plastic car and hanging out with someone called BIG EARS, here's my 2 cents.
Each of the recent(last 2 years) trends have all ended up with a basic starting point.....buy well. The wrappers have bought at good prices and have lifted the basic prices all over Aus in the cheap burbs and even the rural burbs making good buys harder to find.
Developers like Metropole are still finding properties, but most of the good ones have gone and more people are looking. Dave and the Wholesale Property Brokers have gone quite lately as we are now cresting the boom in Melbourne. From reading another post on sydney and Redfern, it appears that more properties are coming on to the Sydney market indicating that that market appears to be levelling as well.
Brisbane is the flavour of the month so I expect it will burn out somewhere in the next 6-12 months as the herd moves in and pushes it over the edge.
whats left??? SA and WA seem to be going along nicely, TAS has moved a bit but looks to be going back to sleep as more people still move out than move in.
So what will be the excitement of next year??
If...I mean if.....if interest rates go up; then a lot of those who joined the market late will receive their exit orders courtesy of the high rental vacancies, zero capital growth; and insufficient cash to absorb the loss. This will present an opportunity for those with cash in their hand and able to make quick decisions to buy some "quick settlement" bargains.
Even without rate rises, at some point zero capital growth and losing cash each week will loose it's appeal once tax time comes.
A sustained sharemarket recovery would contribute to this as well as it would soak up more of the excess cash going into property these days.
I suppose that's why I'm building up my cash resources over the next 6 months and not buying any more property just yet. (I still look each week, I'm just a lot more fussy now!!)
PPS. When people start asking me for advice on property investing, I definately know it's time to get out!!!!
Noddy
Each of the recent(last 2 years) trends have all ended up with a basic starting point.....buy well. The wrappers have bought at good prices and have lifted the basic prices all over Aus in the cheap burbs and even the rural burbs making good buys harder to find.
Developers like Metropole are still finding properties, but most of the good ones have gone and more people are looking. Dave and the Wholesale Property Brokers have gone quite lately as we are now cresting the boom in Melbourne. From reading another post on sydney and Redfern, it appears that more properties are coming on to the Sydney market indicating that that market appears to be levelling as well.
Brisbane is the flavour of the month so I expect it will burn out somewhere in the next 6-12 months as the herd moves in and pushes it over the edge.
whats left??? SA and WA seem to be going along nicely, TAS has moved a bit but looks to be going back to sleep as more people still move out than move in.
So what will be the excitement of next year??
If...I mean if.....if interest rates go up; then a lot of those who joined the market late will receive their exit orders courtesy of the high rental vacancies, zero capital growth; and insufficient cash to absorb the loss. This will present an opportunity for those with cash in their hand and able to make quick decisions to buy some "quick settlement" bargains.
Even without rate rises, at some point zero capital growth and losing cash each week will loose it's appeal once tax time comes.
A sustained sharemarket recovery would contribute to this as well as it would soak up more of the excess cash going into property these days.
I suppose that's why I'm building up my cash resources over the next 6 months and not buying any more property just yet. (I still look each week, I'm just a lot more fussy now!!)
PPS. When people start asking me for advice on property investing, I definately know it's time to get out!!!!
Noddy
Sim
Administrator
Had Christmas get together with in-laws yesterday - several of them announced their plans to buy several investment properties this year for quick profit - in rural SA !!
They were the "schemers" of the family - always coming up with some hairbrained idea about how to make money quickly - none of them earn very much money and almost every idea they try ends up costing them money - all hype and no thought goes into the plan.
I'm seeing more and more of this mentality... "my friends ex-wifes mothers sister dogs previous owner made great money buying this property in that location last year - I reckon I can do better than that !"
My measure is still: when the cab drivers start conversations with you about property investing - then it's time to get out (or at least be very cautious) - same thing happened with the dot-com craze.
They were the "schemers" of the family - always coming up with some hairbrained idea about how to make money quickly - none of them earn very much money and almost every idea they try ends up costing them money - all hype and no thought goes into the plan.
I'm seeing more and more of this mentality... "my friends ex-wifes mothers sister dogs previous owner made great money buying this property in that location last year - I reckon I can do better than that !"
My measure is still: when the cab drivers start conversations with you about property investing - then it's time to get out (or at least be very cautious) - same thing happened with the dot-com craze.
Hi Sim
I absolutely agree with you on this one. When the granny next door was asking me which shares were a good buy, I knew that wasn't normal and soon after everything in the stock market collapsed. The property market is taking a similar twist. Everybody is involved now, trying to make a quick buck, but it's a bit late now and some people will get burnt. Not as much as the stock market though. Everybody gets influenced by the newspapers and TV shows like location location, hot property etc etc
But watch those tv shows get cut off and the papers turning their attention to shares soon.
Regards
Michael,
It has been about 12 months since I last used this forum. I agree with your comments and I have used your simple technique over this period with a degree of success. I too do not have any of the property in my name now. The companies are responsible for any issues, which arise, and I work for them on a consultancy basis.
For those who stand behind their ignorance to challenge of life I have no compassion only pity, for it is the person who wants to the help who will be helped.
At the moment I am marking time and waiting before I start to buy again. Timing, Timing, and Timing are factors which, are as important as the 3Ps in my book.
Regards
Moonshine.
It has been about 12 months since I last used this forum. I agree with your comments and I have used your simple technique over this period with a degree of success. I too do not have any of the property in my name now. The companies are responsible for any issues, which arise, and I work for them on a consultancy basis.
For those who stand behind their ignorance to challenge of life I have no compassion only pity, for it is the person who wants to the help who will be helped.
At the moment I am marking time and waiting before I start to buy again. Timing, Timing, and Timing are factors which, are as important as the 3Ps in my book.
Regards
Moonshine.
