Response to Keithj
Duty calls will get back to you with another post
Hi Keithj sorry for the delay but business comes first. To answer your question about where we are headed; There was an interesting Article in the Herald sun last week that compared the cost of World War II (388 billion) adjusted for inflation 3.2 trillion dollars and the global financial crisis 4.2 trillion dollars!!!! Puts into perspective what is happening in the real world.
For almost a year now I have posted and commented on the financial tragedy that has been unfolding. Earlier in the year I could understand a lot of the resistance to my posts as most of the information you had to go looking for it. Other than the syndicated series in the age entitled Planet Wall Street there wasn't much in the broadsheet press.
It is apparent that there is a significant section of SS are unwilling to accept that being geared at 80 or even 70% overall is no longer appropriate. I have seen my posts portrayed as being anti-property and that I am suggesting that you should sell everything. That has never been the case.
I would hazzard to guess that the vast majority here hold their investment properties in their own name. That approach allows you the advantage of claiming the losses so they are not trapped in a trust until such a time as you show a profit. That benifit also entails the risk of losing the lot to your creditors because you are reliant on your income and the properties in your name.
Initially with trusts the trustee and the properties have a charge over the assets. Over time some of the assets become unencumbered and are locked away from your creditors. No one plans to go bankrupt but most bankrupts fail to plan and therefore do go bankrupt.
I attended on saturday an auction of a property that last sold in Brighton in 2005 for 1.4 million just before prices lost contact with reality. It sold again on saturday for $1050,000 a 25% fall. We have at least another two years of severe consequence from the global melt down.If you want to believe the nonsensical figures quoted by the real estate industry at the moment then your in for a surprise. Ask yourself why is it that agents are refusing to list many properties if the seller refuses to meet the agents assessment of the market?
What I have been on about is common sense but apparently common sense isn't very common.