What they dont tell you in property forums??

They dont tell you that helping investors can be rewarding

 

The politics of forums.....

 

I have a spreadsheet that quotes this against all our properties including 5% sales commission that I can check against any month (Also shows me annual retirement return if we don't actually sell any of them as a percentage of free cash flow on equity amount).

Buying and selling sucks......better to buy and hold as long as you can.

 

Not really, its part of doing business...….. I would rather take a profit, especially when markets start going pear shaped and interest rates are rising, as we are now seeing.

If you buy in a Trust structure you can strategize and reduce taxes.

Though......I agree taxes in Australia suck..... ie stamp duty, CGT, GST

 

This is the most sensible thing I have read on the forum for a long time.

There is a structural change that has taken place - lending capacity for most borrowers in Australia has reduced significantly and majority of markets are/will be impacted. Best to wait for now and build cash for when time is right.

 

The unfairness of Land Tax in states where it’s based on actual land value and not rental value.

 

The loudest voices don't actually know anything about property investing.

 

Especially the ones that have seen 10 property cycles but still hold a 9-5 job.... what the...

 

Naughty!

 

I see what you did there.

 

Only if markets never return.

Once you sell you have to pay 5% to get back in.....whereas im happy to hold as not costing me anything (eg our properties are pretty much breakeven so its tenants who are doing all of the heavy lifting).

 

"The big money is not in the buying and selling … but in the waiting" Charlie Munger

Anyway, in answer to the question in the thread title...

They don't tell you that predictions people make with certainty and confidence is nothing but a guess (sometimes uneducated one at that), riddled with their own confirmation bias

 

yes.. the politics... the factions, the who hates who list

 

.... and then we have the political threads.....the echo chambers.....

 

Any update on Kate moloney. Did she declare bankruptcy? How do you get out of so much debt?

 

I think she has negotiated something with the banks and moved forward and credit in tact.

All the best to her, sure she has learnt a lot from this one

 

I was watching a YouTube video last night which seemed fairly recent and they were saying that she had to pay $30,000 interest per month but she was not making repayments on that. So the loan must be getting bigger. I may have got that figure wrong but I just wasn't quite sure how she was ever going to pay the repayments with rents at a quarter of what was available during the boom.
are the banks just going to keep compounding the loan until the next mining boom is that the plan that that they've worked out? I guess it's none of my business but it's just an interesting story and I'm interested what the bank strategy is. EG how long they will allow this to go on in this type of scenario because they don't have any way of getting their money back.

 

That would depend on the length of the cycle they wouldn't it for decline then a long flat period someone may have been much better off getting out then getting back in later.

 

Exactly that...none of your business.

 

Ok that's totally fine. I don't need to know anything more about her personally. I'm only going off what she was telling 60 minutes. I am interested generally though what the banks do in this sort of situation. And from a debtors pov in these sorts of circumstances it would seem to me that declaring bankruptcy would be a better strategy given the huge difference in the loan amount and the value of the properties and the dismal rents.