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Hi Just a couple of quickies if anyone has time to answer! If putting an offer on a residential house in Qld, is 5% deposit pretty standard or should it be more. If you can't follow through for whatever reason (eg failed building report), provided that you had it as one of the conditions...

Start with some loss aversion bias, mix with some Ownership bias and a pinch of Status Quo bias and you've got the OPs situation defined. Mixed up, ask yourself this - If you didnt have this IP or the loan, would you buy it at the price you believe its currently valued at? How about if you...

I could imagine that once you add PM fees, insurance, rates, body corp, that could account for the remaining 7K.

If its LVR is 95% and only getting a 3% gross yield, you might really need to question your properties value. You may have mentioned but what was your valuation based on? Purchase price? If so, when did you buy (hopefully not 2007/08 for your sake) I'd be getting a valuation done asap. You...

Roll an unloaded die, I also KNOW that there is more chance of a number below 5 than there is one above it. Give me an even money bet on this and I'll take it every time. I could even lose the first few times, but I also KNOW that I'll win in the long run. Magic? No. Fortune teller maybe...

Come on mate, play fair. What is this sentence then? For someone who claims to understand odds, you'll realise I'm not saying which direction the market will go. I'm using odds, just like you are, to tell me the more likely direction. If it continues to fall, thats fine, it doesn't prove...

Yes, buying quality companies in times of panic. Hard to do if you listen to the doom spruikers, but its a strategy that can pay well if done right.

Quite an unsolicited response!? It was a serious question. If you're telling people that there is more chance of a fall than a rise using probabilities and odds, I'm intrigued to know how your came to that conclusion when my research shows the opposite. Taking your own action on your...

Do you work out the odds using history as a guide or do you calculate them based on a cherry picked data set that happens to align with what you think will happen? Because if you use historical data from the last 100 years, you'd find that after a 10% fall in the sharemarket, the odds are...

While I'm not smart enough to know whether conditions these days are enough to give us a greater depression (certainly believe it possible), I do know one of the major differences between then and now was that in 1929 there was a major share market bubble. P/E's were ridiculously high, everyone...

Yeah and since GFC1 we've had about 3-4 corrections of about 10% everytime a new summit or something happens in Europe. Each time its recovered the fall fairly quickly. There's nothing that could happen in Europe that would be much of a surprise. I've got my reserves ready to plough in the...

This is the mistake I made the first GFC. Waited to see how it panned out, when I should have gone with my instincts and education and bought big time the day the final bank in USA went under. This was the final day of ultimate panic, and when everyone was their most bearish, and hence the the...

No not so much, but thats something that has helped sustain it for a bit longer. The stimuli were the situation that led to the start of the boom way back in 2002/03. ie we had low unemployment, low interest rates (due to 9/11), increasing population, start of mining boom, FHB, -ve gearing...

I believe the stimuli that led to the increase in prices from 4 times to 7 times income were not permanent, but they were able to create a relatively short term increase in demand. As we know, if demand increases for an asset with a slow reaction time in its supply, the price will rise and thats...

Maybe that says it all. You're more likely to get a bargain in a place where its hard to finance than one where its easy to get finance. Lets not forget that easy finance was one of the reasons they became cheap in the USA! And as for future growth, in an easy credit environment the risk to...

Yes, sometimes people forget that the 15% interest rates of the eighties didn't come about because the RBa was just trying to have a bit of fun with borrowers. There is no reason this can't happen again.

Believe it or not, buying the stock market when its going gangbusters will give you lower average returns then buying when its falling or flat. Trick is to buy it before it goes gangbusters, and thats the hardest part to predict.

I have always thought it was just one of those typical "reasons to buy" given by the spruikers. The stockmarket booms when the economy booms so good time to buy property as everything is on the up. When the stockmarket crashes, its also a good time to buy because of the theory of...

Yes, I'm thinking that maybe not everyone looked at the chart to realise what stage of the cycle "denial" was at. Without looking at the chart it could be misleading.

The ''its fine , property is a long term investment" is what those in the denial phase mistakenly believe. Thats the trap they fall victim of. I guess they have the belief that property prices can only go up so firmly entrenched in their mind that when they see a fall, all they can only deny...