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I have a number of questions regarding access to credit. We last refinanced a year before the GFC hit. Our LOC primarily gives a buffer for our property investments. The need to refinance is probably about a year away. By this time our buffer will have been gobbled up !!!!!!!!!! *Are the...

300k in six years. Marriage can be quite a handy investment. I think it was Rod Stewart who said, "Instead of getting married again, I'm going to find a woman I don't like and give her a house".

There’s a line of argument running at the moment that maintains that Sydney units are underpriced not overpriced especially in the South West of Sydney (particularly Liverpool). Developers can’t make a living any more and are turning to renos instead- margins are low or non-existent. Yes...

It has been widely reported that the recent and ongoing sub-prime crisis has precipitated a ‘credit squeeze’. Are you finding the banks to be overly cautious in re-financing? Are the big lenders still using the same 80% ratio? Are our financial institutions undervaluing properties when being...

School teacher

That's right Winston

If I factor in depreciation on the IP to make it clearly negatively geared (which in my example I didn't) it is already CF+ in real terms.

In one particular case EIGHT YEARS We bought an IP in 2002 for 240k. Annual rental return for 2008/9 will be 390x52 = 20208 Int @8% on 240k is 19200 PM fees =1419 Body Corp about 3500 OUT 24119 IN 20208 Maybe two more years and we will reach cash flow neutral It was bought for CG...

I have noticed a number of my friends and acquaintances who had been dabbling in Property Investment on a small scale, appear to be bailing out. Lured by the heady boom days, many are getting cold feet citing uncertainty, rising interest rates, government change and inflation as the reason for...

Yes we did the sheets for curtains thing and looked down behind the cushions of the lounge the night before pay-day in order to buy a litre of milk to put on the kid’s cornflakes in the morning. On another matter though, if house prices have doubled on average every ten years since who knows...

Unreservedly-Chris Edwards in Richmond combines accountancy and legal services with a specialisation in PI

Motivated Vendor One of the photos in this ad shows the motivated vendor unable to maintain payments, out on the street and desperate to sell. http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104065922&f=0&p=10&t=res&ty=&fmt=&header=&c=53184841&s=nsw&snf=rbs&tm=1182634127

As beautiful as these creatures are, it's probably best not to encourage them in the first place. Years ago the bloody things mangled our deck a week after we moved into our new house. I wouldn't be feeding them. BTW, they love cedar windows.

Thanks Brinkdude- just what I was looking for.

On another thread MC98 made the assertion that it was greedy to accumulate too much property in order to provide an income stream. His posting raises a couple of interesting points. How much does someone really need to comfortably retire on? What is your magic figure p.a.?

Thanks BV Had some fun with the calculators. Do you think the high growth estimate of 8% is rather conservative?

Thanks BV!

I had thought about it vaguely but have never done the sums on it. I'll punch the numbers into the steam driven computer today. Thanks Marty!

Thanks Tobe, Very succinctly put. Yes there is something "icky" about borrowing to pay interest on previous borrowings. Many do it, I imagine. I know we are now starting to build buffers into our borrowing to cover anticipated shortfalls over the next few years. It's important to take care...

Thanks for your reply xbenx. It's gratifying to know that it is possible to hang on to your properties without cutting off the head of the goose that laid the golden egg. What is the critical LVR point where borrowings become dodgy? Relating to your other comment, the rental yield...