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The end of the landlord as we know it; Low interest rates end the landlord model
Topic Started: 14 Sep 2014, 01:00 PM (4,443 Views)
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miw
15 Sep 2014, 01:26 AM
Rubbish. 5.3% yield is just more than it used to be. The longer interest rates stay low, the more it will compress, but LLs are arguably better off now than they were 10 years ago.
Is this property in Perth ? I have noticed bottom end sales still look strong.

Did you put down a strong deposit to begin with ?

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Foxy
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Zero is coming...

miw
15 Sep 2014, 01:52 AM
I resect your opinion, could you please answer the following
1) what is your "net" yield.

Better than it was 10 years ago, because my gross yield is 0.5% lower but my interest rate is 2% lower. (Actually gross yields were sucking in BNE in 2004, but there were higher than they are now in 2001.)




See above




Not relevant to the discussion.




More than 10 years ago, and where I own, prices have kept ahead of inflation which is what you want to know when you talk in yield terms.

If you really want to have a point, LLs with no debt are worse off, except that yield on everything else has got more worse so on a comparison basis, they are no worse off. LLs with debt are significantly better off.
We stopped investing in house rentals over 30 years ago, bought some just to teach the boys the basics of investing and maintenance.
Like a school project for them.
It is good to ground the basics of property ownership.
But please, there is just no net in the game unless you are a bank with all the gain and none of the risk.

I would not own my own home if it where not for my wifes insistence.
It costs me $2,000 per week to keep the little lady happy.
Now that is a lot of rub and tugs down at the remedial massage clinic.

But as they say "happy wife, happy life"

If i reinvested the capital from my ppr i could probably find an investment that would bring in $2,000 per week net.

But anyway females think differently because men facilitate.

Peter




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Dr Watson
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Chris
14 Sep 2014, 02:22 PM
Oh good to know Peter, I was wondering my position in this world and now I know I am a piece if shit that rents from a private landlord. It would be nice to be a genuine human being with a 40yr interest only loan but that's life I guess, we can't always get what we want hey?'
The perception that renters are second-class citizens is deeply ingrained from the Middle Ages when feudal lords could ravish the wives and daughters of the serfs and have regular sex with them. These days it's enough to make a monthly payment into your landlord's bank account and leave it at that. While your landlord might still look down on you, at least you don't have to share your wife or daughter with him. Things have been worse.
Edited by Dr Watson, 15 Sep 2014, 12:25 PM.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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miw
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Mustapha Mond
15 Sep 2014, 09:44 AM
We stopped investing in house rentals over 30 years ago, bought some just to teach the boys the basics of investing and maintenance.
Like a school project for them.
It is good to ground the basics of property ownership.
But please, there is just no net in the game unless you are a bank with all the gain and none of the risk.

I would not own my own home if it where not for my wifes insistence.
It costs me $2,000 per week to keep the little lady happy.
Now that is a lot of rub and tugs down at the remedial massage clinic.

But as they say "happy wife, happy life"

If i reinvested the capital from my ppr i could probably find an investment that would bring in $2,000 per week net.

But anyway females think differently because men facilitate.

Peter



How would you know? You have not been in the biz for over 30 years?

You say there is no nett in the game from the outside, while I (and many others) am on the inside collecting nett every week.

I am sure you can find investments that in a given year will return more for your capital. Just go buy some NAB preferred shares. Or buy some NAB dividend-returning shares. Or even some 30-year bonds. There are many different yields out there on the table. And strangely enough when you do a risk-adjusted DCF analyisis, they all come out to very similar NPVs, as they should.

My stock portfolio is probably worth less than your PPOR, yet it is returning well more than $2000/week. I could sell all my IPs and buy stocks and save myself a lot of work. Why am I not doing that I wonder?

Dr Watson
15 Sep 2014, 10:00 AM
The perception that renters are second-class citizens is deeply ingrained from the Middle Ages when feudal lords could ravish the wives and daughters of the serfs and have regular sex with them. These days it's enough to make a monthly payment into your landlord's bank account and leave it at that. While your landlord might still look down on you, at least you don't have to share your wife or daughter with him. Things have been worse.
Not sure it comes from the middle ages, but there certainly is a false perception that renters are second-class citizens.
Edited by miw, 15 Sep 2014, 02:08 PM.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
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Foxy
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Zero is coming...

Dr Watson
15 Sep 2014, 10:00 AM
The perception that renters are second-class citizens is deeply ingrained from the Middle Ages when feudal lords could ravish the wives and daughters of the serfs and have regular sex with them. These days it's enough to make a monthly payment into your landlord's bank account and leave it at that. While your landlord might still look down on you, at least you don't have to share your wife or daughter with him. Things have been worse.
No the landlord uses the rent to go to the whorehouse that is stocked high with the daughters of the renters.
But hey you got to pay the rent, Right.
Grow up.
Peter
Edited by Foxy, 17 Sep 2014, 12:11 AM.
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miw
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Mustapha Mond
15 Sep 2014, 09:39 PM
No the landlord uses the rent to go to the whorehouse that is stock high with the daughters of the renters.
But hey you got to pay the rent, Right.
Grow up.
Peter
Well, at least the wives of renters aren't there.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
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Foxy
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Zero is coming...

How many wives have worked in brothels,
A friend of mine informed me that the reason the girls are hidden when you first walk in is if your wife or daughter are working at the brothel they can stay out the back.
That way you all skirt around a very uncomfortable moment.
Peter
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Dr Watson
15 Sep 2014, 10:00 AM
The perception that renters are second-class citizens is deeply ingrained from the Middle Ages when feudal lords could ravish the wives and daughters of the serfs and have regular sex with them. These days it's enough to make a monthly payment into your landlord's bank account and leave it at that. While your landlord might still look down on you, at least you don't have to share your wife or daughter with him. Things have been worse.
Tennant's are now dictating terms to landlords. Who's the lord now. :bye:

Speaking of daughters , the landlords are now having to offern some enticements to find a tennant. A months free and all that .

Might whack a 3% deposit on a few more Perth and Canberra ips, and pay interest only for the next forty five years. With prices and rents surging to the moon what could possibly go wrong. :tu:

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Dr Watson
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Guest
16 Sep 2014, 12:09 AM
Tennant's are now dictating terms to landlords. Who's the lord now. :bye:
Stop paying your monthly rental into your landlord's account and you'll soon find out who the boss is.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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Blondie girl
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Guest
15 Sep 2014, 09:30 AM
Is this property in Perth ? I have noticed bottom end sales still look strong.

Well congrats to you it's evident you've been off your bum looking with your eyes & not dependant on computer shite.
Guest
16 Sep 2014, 12:09 AM
Tennant's are now dictating terms to landlords. Who's the lord now. :bye:

Speaking of daughters , the landlords are now having to offern some enticements to find a tennant. A months free and all that .

Might whack a 3% deposit on a few more Perth and Canberra ips, and pay interest only for the next forty five years. With prices and rents surging to the moon what could possibly go wrong. :tu:
Better start trying to learn how to spell tenant properly.

Oh triple m the rents still coming in regardless , may take a littl longer to rent out as there's more choice but my accounts is looking healthy.

Edited by Blondie girl, 16 Sep 2014, 03:27 PM.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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