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Thanks for the update. Good luck on your next purchase, and don't be in a hurry....

Kenneth, excuse me for not responding to your ongoing posts to this thread, but I honestly feel I have said all that can be said in support of my stance.... how about you????

OK, instead of talking about returns, let's crunch some numbers and plot them: From memory, and I am tired, Borrowed 350k Plus reno and stamp duty 20k rent $210 /wk Rate ~6.8% Rpts 23000 Have a look at the attachment. It shows George won't make money for...

Just remember to maximize your capital losses (rather then expenses), so you can write them off against cg's in the future.

Georges, something else that came to mind is instead of trying to onsell a poor yielding investment, consider 'creating' some upside and selling that. i.e. developers will often get a DA approved for a subdivision, and then instead of going through the motions, and exposing themselves to the...

Ausprop, you are taking a long term historical perspective, whereas I am referring to the short term outlook, as this is what will influence property prices. In support of what I say I provide the following quote regarding the latest Australian Chamber of Commerce business survey. Steve...

Bill, the house prices used are established house indices for capital cities. The indices were then converted to dollar figures using three established median prices to confirm accuracy. I take on board your point about renos, but I question how strong a factor that is. Most houses remain...

Bill have a look at this graph. The graph shows affordability vs actual price. Since the early 80s, the two plots have separated. There are several explanations for variance. 1. The national median wage does not reflect that Sydney median wage may have grown quicker than the national...

Thanks Bill. Agree with George cutting his losses if it is to be a low CG and low inflation 5 years ahead. Re cg and inflation, one thing is for sure, and that's the ATO don't mind taxing you on the inflated dollars of CG, rather then inflation adjusted CG. Panic, you are right. if...

Hi Bill, Point taken about the improving quality of home. Re median prices, I think there is a lot of room for misinterpretation of them. i.e. the ABS split established house prices and new dwelling starts in their indices. You make an excellent point bringing it all back to DSR and...

Les, three points: 1. you got me thinking about how much of house growth is due to CPI, so I plotted Sydney median house price growth against inflation. I had felt inflation wasn't responsible for the greater part of capital gain, rather population pressure in capital cities, competition for...

Hi Les How about some modelling when you get a chance. You must have a copy of PIA!!!! It would be a really good thing to come to terms with. I think we are all a little fuzzy on how inflation and capital gains and interest rates and negative gearing relate, with different gross rents, and...

Man what a thread. Trying to judge the relative merits of CG and inflation is too difficult to do without providing modelling, especially in George's case, who happens to be badly negatively geared. When I modelled his numbers, I used IRR at 30 years to compare various mixes of inflation and...

Definitely granny flat material

But I suppose what Ian and Jan don't address in that piece of advice is "buying when you can afford to" is dependent on when you buy. Buying at the top of a market cycle will prevent you from buying again for a lot longer than buying at other times in the cycle. Which is Georges Dilemma...

And this isn't the first time the time heals all advice/excuse has been put forth on the forum. We have to remember that Jan Somers' IP strategy is 'time in the market' not 'timing' And Ian and Jan's overriding advice is to buy whenever you can afford, and hold until retirement...

Enquire about the cost of converting your P&I loan to Interest only. This will reduce your monthly repayments and the whole amount will be a tax deduction (I take it that your current loan is P&I from what you infer above) Check council regulations for building an attached dwelling (granny...