"The Week That Was: 3-9/11, 1999"

From: Mike .

Hi Everyone,

Fantastic weather we had over Easter! Well, the chocolate binge is over for another year so lets hop straight into this week's post-mortem. A reasonable choice of words given that the forum was deathly quiet again this week. Only 2 threads and 10 posts in total.

Topics were: Units v Houses, & Loan Calculators

Quotable Quotes:

From Les re download time: "You'll have time for a quick nap between requesting the URL, and having it appear though."

From Boyd: "Thanks everybody. Nothing like sharing info, exactly what this forum is all about."

From Les: "Re the Mutual Funds - I'd be hard pressed believing any of them can guarantee you 16% return."

From Les: "But hit that car loan HARD... and blow it away for this time next year. Ready for the next investment .... and good luck."

From Boyd: "And if you have a poor body corporate, it can be a huge pain in the bum."

Research and URL's:

Landlord's Advisory Service" in Perth. It is an organisation set up by Landlords for Landlords.

Property Owners Association of Qld. The membership os $60.00 pa + $10.00 joining fee The Info pack is available from PO Box 1984 Toowoong 4066 Phone 07 3378 7411.

The ewizard calc is at: http://www.ewizard.com.au

Another handy (downloadable) shareware loan calculator called "AprCalc" from:

Another one that is interesting is: http://www.loanNET.com.au
They also have a calculator (but NOT downloadable)

Also the one at SmartLine Home loans is pretty flash .. works out negative gearing impact etc. as well ..

This week's Classic Post goes to Boyd who compares Units and Houses in his reply to the following question from JF:

"Hi, I'm hoping to be able to make a start as an investor. I'm looking at borrowing around $100K which is pretty much all I can qualify for on my current income $42K since I am also paying out a car loan (balance is now around $10K)

I'm not sure that I would be able to get a house with much prospect of capital growth for only $100K (from what I've seen its only the outer 'undesirable' suburbs where these exist and I'm not sure there would be much of a rental market that far out from the CBD - wouldn't most folk wanting to live out there be buying too, or even building?) so I'm thinking maybe a unit or townhouse as near to Perth city as possible - I have seen some for around $65K to $80K, but I've read "don't buy units" etc because they have no land value. surely though they would have to increase in value over time? My accountant says these units would be better at generating an income since the rent would pretty much cover the loan repayments, whereas on a house of that value the rent probably wouldn't and I'd be left with having to make up the shortfall

I guess my other option would be to put my savings into some kind of managed fund and wait till I have a larger deposit. Anyone have any ideas where I should start?"
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