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What's your favourite Somersoft thread?; Somersoft Property Investment Forums mass delusions
Topic Started: 18 Mar 2011, 10:48 AM (30,735 Views)
Strindberg
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BubbleTrouble
28 Oct 2011, 12:50 PM
Not quite. Don't forget rates, maintenance and building insurance.
Building insurance is optional when you have no mortgage.

Anecdote:
Last time I sold I rang the insurer to give notice of termination of the insurance on the coming completion day. The girl I spoke to said "We can't do that, you'll have to get your solicitor to confirm to us after completion that it actually took place". I explained that I was instructing her to terminate the policy and no longer asking. She kept on refusing and I spoke to her supervisor who just backed her up and then explained that they had to protect the lender. I said "lender? what lender? I've never had a lender for this property!". He then said "What? No lender? No lender at all?" I said "yes". He then agreed to terminate the policy as instructed.
Edited by Strindberg, 28 Oct 2011, 01:51 PM.
Housing costs to Income broadly unchanged since 1994 - re-ratified here
The People of Australia have the highest median wealth in the World
2002-2012 10 year house price growth the SLOWEST since 1952-1962
"There are two kinds of people in this world: ones that fiddle around wondering whether a thing's right or wrong and guys like us." (Hugo to Gagin in Ride the Pink Horse)
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muzza
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the moral is if you're an insurance clerk, her supervisor or anyone else who can't bite back (at risk of losing their job) don't mess with the mighty Turdberg :D :D :D
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Strindberg
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muzza
31 Oct 2011, 04:37 PM
the moral is if you're an insurance clerk, her supervisor or anyone else who can't bite back (at risk of losing their job) don't mess with the mighty Turdberg :D :D :D
....ta for the feedback and confirmation that my posts here annoy you and schooner (and others). Good to know I'm meeting one of my prime objectives.
Housing costs to Income broadly unchanged since 1994 - re-ratified here
The People of Australia have the highest median wealth in the World
2002-2012 10 year house price growth the SLOWEST since 1952-1962
"There are two kinds of people in this world: ones that fiddle around wondering whether a thing's right or wrong and guys like us." (Hugo to Gagin in Ride the Pink Horse)
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BubbleTrouble
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Frank Castle
28 Oct 2011, 01:12 PM
Oh, ok :rolleyes:
So it costs about $70 a week Vs $400plus a week and increasing.

I am still $17k + a year better off by owning
Not to mention CG and further use of site in the future.
Don't do a Rav on me. You were exaggerating the savings by omitting holding costs and you know it. Your point was valid without having to resort to such shennanigans.
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BubbleTrouble
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Strindberg
31 Oct 2011, 05:11 PM
....ta for the feedback and confirmation that my posts here annoy you and schooner (and others). Good to know I'm meeting one of my prime objectives.
I pity your sad existence if that's what makes you tick.
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Trojan
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BubbleTrouble
31 Oct 2011, 06:51 PM
Don't do a Rav on me. You were exaggerating
<snip>
Lol, I like that saying.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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Mahamed
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Morbidly Obese

Somersoftie discovers path to eternal riches , a protfolio that offers rivers of gold whether the markets booming or crashing

or so he thinks

http://www.somersoft.com/forums/showthread.php?t=74886

Quote:
 
IP portfolio that performs regardless of market movements!

Hi All,

With all the doom and gloom around, I thought I would share a way to structure your portfolio which will perform whether the market is falling/flat or booming!

As I have said previously, this is part of my risk mitigation strategy of buying properties with balanced growth and cash flow and tightening expenses.

My portfolio has grow from about $1m to about $5m in about 6 years based on this strategy.

The premise of this strategy is based on the following:
1. Buy in 5 major cities or larger regional (i.e. over 100k in the greater
catchment) metropolitan areas
2. Buy with minimum of 7% yield with a view of increasing this to 9-10% in
2-3 years
3. Buy in areas with infrastructure improvements within 3-5 years
4. Diversify your portfolio around the country - to reduce risk as well as
reduce any land tax liabilities
5. Balance between gorwth and CF - this the only optimum way to continue
to grow your portfolio and your wealth in my opinion without significant risk

Having said that..some of your investments may not always getting growth or cashflow. Unfortunately, this is happening across 2 properties in Qld and 1 in Melbourne (though the CG has been fantastic). But this only represents less than 20% of my portfolio...but my overall portfolio is still CF.

So now down to the nitty gritty of my portfolio:

1. My existing portfolio is geared at an LVR of 37% (would like this to be
34%) this is despite me acquiring 3 properties this year for about 800k
2. The overall portfolio is returning 5.1%
3. The CF+ position once fully let (have 2 vacant due to reno) is around 3k
per month
4. Equity has grown 420% over 6 years

My portfolio is structured in way it will perform whether the market is falling/flat (as it is now) or booming!

How is this possible? Well easy to see property performs in a booming market...so no explanation required. As for falling/stable market...see below...

I believe my portfolio will still perform in falling/flat market as rents and interests drop.

My current IR repayments are about 126k per year. The rents have been stable or slightly dropping in the last year.

Given that IR are about to drop (fixed rates have already dropped)...if my rates drop to an average of 6%....I will say about 30k in interest repayments. Further more I have started increasing rents by 5% which will bring about 7k in additional rent.

So my 36k positve income will become 72k per annum if additional rent and interest reductions are included. If I take 4k for additional increase in costs I am at 68k ...not bad!
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Shadow
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Evil Mouzealot Specufestor

Mahamed
3 Nov 2011, 12:13 AM
Somersoftie discovers path to eternal riches , a protfolio that offers rivers of gold whether the markets booming or crashing

or so he thinks

http://www.somersoft.com/forums/showthread.php?t=74886

Sash seems to have done pretty well for himself.

How's your own portfolio going? Still renting and 'saving the difference'?
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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muzza
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Bloody hell .... even some of the true believers are getting a tad nervous...

http://www.somersoft.com/forums/showthread.php?t=76002
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Rastus2
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Strindberg
31 Oct 2011, 05:11 PM
....ta for the feedback and confirmation that my posts here annoy you and schooner (and others). Good to know I'm meeting one of my prime objectives.

Prime objective ?


I didn't know you had any other objectives at all that are driving you to post here.
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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