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"Terms of use". You agree to them everytime you log in. If you believe a post to be out of order there is a red triangle in the top right of every post to click on so you can report it. Just don't bother TOUing a moderator. LOL

And you are confident that a government, socialist enough that it can castrate the industry that has kept us thriving and then saddle the REST of industry with this wage rise (because we are thriving) is, at heart, still free enterprise enough to allow landlords free reign? I have this little...

It seems you read my words but missed my meaning. The full quote was "property is the only game where you can lose 40% and still win". The next bit was a reference to my local football team which "only" lost by 4 pts on Saturday. Nowhere did I infer that I had lost 40% on a deal. The...

There are TWO ways gross yields can get up to 8% and rising rents is but one of them.

Truong PS - English isn't my first language either so I hope you can read my writing. Understood it perfectly and it is well written. :)

I assume English isn't your first language but I find it hard to think that I ever said anything that could be wildly misinterpreted as saying that I have lost 40% on a property.

The interest is $32k/y or $320 in 10 years. So you make $80k but the curve would only cross out of the red into the black a couple of years earlier. If circumstances change and you had to sell in 5 yrs, cap gains would not have covered interest costs. But let's go back to what I said...

Very simple. Rule of 72 says that if an asset doubles in value every 10 years you get a 7.2% compounded return. If you are paying 8% on your loan all you have is a tax loss. And we know "median" prices increase as renos are done and bigger better houses are built. Will the "median" house you buy...

You miss my point: If property only doubles every 10 years then cap gains are totally negated by the interest on OPM so gains are limited to the net rental return and cap gains on your own equity. Without the tax break you wouldn't touch it, and I don't have any use for a tax lurk.

You nearly got me there. :D Too much white space before the last sentence. LOL

Property is the only "game" I've heard of where losing by <40% is a win. According to you guys the Cowboys won last Sat night. Let's get real and talk about what IS the cut off point where the investment no longer works. I'm pretty sure it will be more'n a little better than that.

Big hat, no cattle.

Back off Marc! I detest the "theory" of "intrinsic value" as much as anyone. And it is grossly unfair of you to suggest that I'm so stuffed up with data that (I) wouldn't pull (my) wallet out of (my) back pocket. In fact I take it as a serious slur on my efforts as an investor and you should be...

I may be getting my threads mixed up but didn't this debate start with my assertion that inflation doesn't "inflate away debt", that there is no free lunch? I know I have never said "cash is king" and I don't remember WW doing so either.

This is the frustrating part of a property forum: If I say that my property hasn't increased in value for three years (and it hasn't) you can, reasonably, say The last 10 years has seen some good increases in many areas. If say that Sydney 3br BV houses without harbour views (the largest single...

It is above CPI if they fear deflation. (In this case probably asset deflation, particularly in stocks, which is what WW warned about). It definitely confirms something I've said here often: Return of capital is more important than return on capital.

There is such fear out there that the 3 month treasuries are yielding 0.01%. I reckon our market is overpriced at a PE of 14. What are the Yanks thinking, bidding theirs up to 20?

Wealthy Americans invest massive amounts of their funds in bonds. Should we write them a letter to inform them of their poor judgement?

If we are allowed to cherrypick examples, I have 1,800% gain in shares in 7 years. (In the last 10 years the results of my property investing has been disappointing.) I may never repeat that, and it is unlikely you would be able to repeat your experience, starting today either.

Of course not. That's not what I said. But your lender is not going to allow you to "cheat" him with deflated dollars. Why should he? If looking at this from the borrower's angle confuses you, look at it from the lenders'. For you to gain, they must lose. (I'm talking about the value of the...