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Its been ages since I posted here. Nice to see some old timers still giving great information! We have a family trust and want to use a loan to buy some investment(s). The first investment is a part share in a commercial property. We would like to use the equity in properties held in...

I think fees are ok but they should reflect the real cost of the service provided (inclusive of a reasonable profit margin). This is common in other industries, with reasonable margins ruled on by various bodies (ATO, ACCC, etc) Banks should not be able to charge fees which are punitive /...

IP in Heildelberg West (Melbourne 10km from CBD) Comparing rents in Feb/March vs 4-6 months ago showed me little change. I would regard this as a "drop" in real terms and also because this should be peak season vs just before Xmas. I probably could have squeezed out a small rental...

My gut feeling is "stuff you!" if there is no price. Thinking about it logically, I have to admit that pricing was pretty useless in my previous purchases - I needed to pay above the advertised price in bull markets and offered significantly under in down markets. However, without prices...

Can You explain what you mean by this please.

Upgrade to digital? Analogue is soooo Fuzzy ! :eek:

You will be charged a cheque dishonor fee either way ! :p

Sorry I should have clarified. I expect IR to fall in the short term. In the medium term I expect stagflation with wages / assets / growth stagnating (deflating), but goods and services rising due to higher input costs. There is a great deal of talk about corporate excess. I think most...

What if: *wages decrease *house prices remain steady and *interest rates rise. Thats closer to my crystal ball prediction. My reasoning is: - lower dollar - increasing energy costs (long term view , not looking at short term fluctuations) - increasing food costs

Good Lord! Looks like I'll be staying away from IPs whch have a zillion Low voltage down lights. I can imagine geting a call every second week. Those things are always blowing. My lease state that its teh tenants responsibility to change bulbs and batteries (Vic). I don't know if they...

I think this encouragement for non home owners to buy their first home is massively irresponsible by the government at this time of the cycle. Its like the cheese in a massive mouse trap and the little mice are starting to bite...

.......... and I stopped reading there. 5% capital loss over 8 yrs unadjusted for inflation? Is that what your saying? Sounds stellar! :o If property values are moving in line with inflation, then arguably so. If property values stagnant in $ terms, in inflation adjusted terms you've...

Australia's experience going forward will be the average of all its citizen's. Some people will find themselves at the pointy end of this recession while others will not be affected as much. In my own little world I really cant see much change except for the paper losses on my super /...

But still worth trying it on ! ;)

1) Its not money, its (leveraged) equity. And its not going anywhere, its just being lost. If they were ungeared they get cents in the dollar. If they were leveraged they may be zeo or -ve equity 2) Panic -> Customer redemption -> Forced sale. The hedgefunds aren't moving into...

Personally I think rents in well located good basic resi IPs will rise. However it is conceivable that if the recession is severe enough people will reconsider their living arangements and share more. Get a flat mate. Move back with the folks, etc.

I presume you meant to say that .....inflation "deflated away" your debts....? Or am I misunderstanding your post. As long as (yield > IR + inflation) it doesnt matter too much. However as Nathan said, if you are Saving only and IR < inflation you are going backwards. Especially after tax...

Guess I changed from a rich fool to a wise pauper ! :p I shall sleep better tonight ! :D

Totally agree Daz. What they should have done is keep IR low and encourage every one to borrow even more money. If more people borrowed the economy would just keep humming along tickety-boo..... :rolleyes:

Thanks HiEquity. Can you give your take on the original question: