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Hi all, Georges, you have made a courageous decision. Not only in cutting your losses, but in admitting it here in the forum. I think you will do very well as a property (or for that matter any other) investor. I hope you attain a good price in the sale. Good luck on your search for an IP...

Hi Bruce, On the graph shown, is the "house price" the median house price?? Even for established houses, many will have undergone upgrades/extensions. Taking that out of the picture will make the graphs come closer together. If we were to look at household income, which would take into...

Hi Bruce, I don't see, the current policies bringing either higher inflation, or lower interest rates(like 3% for borrowings a la Japan), hence why I would cut my losses if I owned Georges average house in average suburb. (I am trying to keep it on the topic of the thread) Buying in the...

Hi Bruce, An interesting analysis, but a couple of points about the last boom and using median prices. With using median house prices, there is always a bias as the median house today is likely to be bigger and have more features than the median house of 10-20-30 years ago. Also included in...

Hi all, Acey thanks for the flame. Now, could you please explain your position of how inflation is not any good for the purchaser of property with borrowed funds. If my assumption that you can pay off a loan that has stayed the same size, with deflated dollars is incorrect, please...

Hi all, TjamesX, I don't think the wires are crossed. The value of inflation to the investor lies exclusively in the borrowings. If you buy the property with cash in year 1, then whether inflation is 0 or 10% will make no difference to how well off you are. The difference (by using...

Hi all, Acey, You actually don't get it, do you??? In the example I gave, even though I only have $44,000 that is worth half as mush as it was 10 years earlier, I have $44,000 that I did not have previously. If it was an IP, lets look a little more in depth. Say we owned our own PPOR...

Hi all, Acey, you must be kidding with this statement, in regard to property investment........ "And to correct some of the misapprehensions in your latest post, inflation is NOT your friend and you do not want it to do it's work. Inflation reduces the value of money over time. If you are...

Hi all, Kenneth, if I have upset you in some way I am very sorry, that has not been my intention. All I have been trying to do in this thread is answer the queries that Georges made at the very beginning...... "I would love some advice on where to go from here.. it has been on the market...

Hi all, Kennethkohsg, I don't understand what you are trying to say here.... " While I do enjoy your "sparrings" and exchange of views with the various forum members to a certain extent, nonetheless, I feel that I need to say this: Say what you like, a cogent and well argument does not...

Acey, Exactly right. They will need INCOME. They won't get it from this type of property. $220 pw before any costs, while tenanted. All for the princely sum of $345,000. As the baby boomers go from retirement to 85, they will look for better returns than this, with lower risk. Even money...

Hi all, Just adding to my 2 ealier posts, that I forgot to include. The driver of baby boomers looking for retirement investments has also pushed the property boom. While the number of people entering that age group (near retirement) will remain large, the rate of growth into that category...

Acey, I don't disagree with any of that, in fact they are the very reasons why some property can still be a good investment. But not all property. From my perception the driver of most of the cap growth in average houses has been inflation and recently the drop in interest rates. (...

Hi all, Investor and Kristine, I have to disagree with you on this one. Georges has already stated that the house is in an average area and a fair distance from facilities. At current inflation and interest rates, Georges yield on the property (on his purchase price) will only be 5.3% in 20...

Hi all, I'm another "ditto". For those who keep talking about "the next property cycle", please remember that each cycle has a driver. The last one was probably due to the lower interest rates and the realisation that they would stay low, coupled with the baby boomers looking for a...

Hi all, There has been some really interesting and varied advice given so far. Georges, for my money, I would want to look at the following as there is not enough information given so far. 1. Borrowed $350k (for purchase and costs) interest cost at 7% = $24,500 pa. 2. Other cash...