"The Week That Was: 27/10 - 2/11, 1999"

From: Mike .

Hi Again,

Just when I thought the forum was gathering momentum, this week was a dull affair with only 2 short threads, a total of 8 posts. Nobody even bothered to SPAM!

The topics were: Borrowing against Equity, & DHA.

Looking forward, I see Gee Cee's name appearing regularly from early Jan, 2000. Half the posts, though, have the word LUNCH in them, So don't know if there will be any Classic Posts amongst that lot. Should be a few Quotable Quotes in there, though.

Back to the present, and some Quotable Quotes:

From E. Morris: "I will be buying without seeing which is not really advisable."

This post from E. Morris was 6 months late and he/she never posted again.

From Gee Cee: "I have heard of cases where say the rental guarantee is $300 p/w and they pull out then they can put any Tom, Dick or harry in to rent the property @ say $150 and just make up the $150 difference.

Anyone else heard of this?"

Me: I think the Qld Govt has heard of this, GC.

Let's not beat around the bush any longer, this week's Classic Post is from the only person who can create a good post after prefacing with: "I can't provide specialist knowledge as I've never owned one." If you haven't worked it out, yet, you'll just have to open the attached file.

Here is Michael's question:

"I am new to this investment scene and am looking at my first investment property. Hope some of the more experienced people on this list can help.

I read an earlier post regarding the 15% fee Defence Housing charges and this doesn't look too bad when I do my sums. Please correct me if I am missing something.

For ease of figures lets assume rent is $300pw. Fee would be $45. Most Real estates charge one weeks rent and then 7%. This leaves 8% extra to pay, now lets take 2% for vacancies, back to 6%. I don't need tenant insurance as Defence Housing will repair all damage under this maintenance scheme and continue to pay me rent. Lets say another 1% off bringing it back to 5%.

So I am paying 5% per year for worry free maintenance and a complete repaint and new carpet after 9 years. So what am I missing?"
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