Home owning vs. renting

Broadcast Date: October 9, 2007 (On Channel 7 - Sunrise)
Interview: Phil Ruthven (researcher)

Phil is chairman of IBISWorld. Read Phil's full report (PDF) Phil Ruthven challenges the perception that renting is ‘dead money’. Ruthven claims renting can be more economical than buying, if the monetary difference between renting and buying is invested in quality shares or super. Ruthven also says that interest payments on a house are higher than rent even before capital/principal repayments are made. At the moment, interest rates are actually double rent rates! There are many forgotten costs involved in owning a house For example: a) transfer costs (real estate agent fees, conveyancing fees and stamp duty) three or four times over 30 years, given that people own homes on average for around 7-8 years before exchanging them: b) maintenance costs (huge): c) alterations & additions to the home (average $120,000 over 30 years): d) rates (except water): e) insurance (except contents, as they have to be insured by lessees also) Other factors to consider 1. The average Australian will live in at least ten (10) homes during his or her life, seven of these independent of parents and mostly as a married person. Of the seven homes, how many should be owned, if any, versus leased? 2. Leasing is different to renting in a number of ways: a) the time frame is longer (up to 10 years or more), like commercial leases; b) ownership is different (property trusts, superannuation funds, etc), whereas rental premises are usually owned by individuals or consortiums; c) the lessee can modify the home, by agreement with the lessor. Full Report: HOME OWNERSHIP VERSUS LEASING Points to Ponder Phil Ruthven, Chairman IBISWorld Pty Ltd 1. The average Australian will live in at least ten (10) homes during his or her life, seven of these independent of parents and mostly as a married person. Of the seven homes, how many should be owned, if any, versus leased? 2. Leasing is different to renting in a number of ways: a) the time frame is longer (up to 10 years or more), like commercial leases; b) ownership is different (property trusts, superannuation funds, etc), whereas rental premises are usually owned by individuals or consortiums; c) the lessee can modify the home, by agreement with the lessor. 3. Home ownership has varied between 45% and 75% over the past 130 years (currently 69%). It would be unlikely to ever exceed 75% due to: a) young people "flatting" when they first leave home; b) elderly people in nursing homes; c) people in armed forces, other than government accommodation; d) people in accommodation provided by their employers (bankers, teachers in rural areas, etc); e). extended families (eg. widowed parents living with children) 4. Some European nations have very low home ownership, and therefore high propensities for leasing, as can be seen in the exhibit below. 5. Home ownership in Australia was boosted in the post war years via: government policy of low interest rates; assistance with deposits; permanent building societies prepared to lend up to 95% (or more) of the value of the home compared with 67% by banks; employer sponsored home loans at special rates (eg. banks, insurance companies, other corporations). 6. All the above, plus a longish period of inflation, meant that home ownership made good financial sense via cheap or even "free" money (after deducting inflation) and being a hedge against inflation. 7. It is important to remember that home affordability should always be weighed up against alternative investment opportunities. 8. During the last 45-50 years, home ownership became a motherhood issue and came to be treated as a normal thing to do (which it wasn't historically) and a source of emotional security and stability. These latter attitudes will continue on for decades. Further, most parents believed it to be a form of forced savings, which it was. 9. Over this period, the saying developed that "rent was money down the drain". This was not true, since for most of this time the interest payments on a house were higher than rent even before capital/principal repayments were made. In 2007, interest rates are actually double rent rates! My own apartment is a good example: the lease is around $28,000 per annum. The interest alone, if I was buying the apartment (around $925,000) would be around $74,000, before any capital repayments. So, it is "interest payments that are money down the drain". And clearly one can make a far better return on the amounts of money used as capital repayments on a house loan (eg. by investing in shares). Of course, inflation means that capital repayments become easier over time as wages and salaries grow, and principal repayments remain constant. 10. Leasing is recommended for length of tenure and security reasons (i.e 3+2 years, 5+5 years), not renting. Such leases are not easy to find but will become more prevalent as we move through the 21st Century. For decades in the USA and Canada, whole suburbs have been built for leasing only! And leasing has been common in many European countries for over a century. These trends are now only starting in Australia. Leasing of homes will mainly be provided by institutions (property trusts, pension funds, etc), whereas renting of homes is provided mainly by individual owners of homes. 11. If, individuals or families leased their home and invested the difference between the lease costs and the interest-plus-principle repayments in shares, then: a) they would have been better-off financially even over the past 45-50 years of (sometimes) high inflation; b) they will probably be better off over the next 45-50 years. The real questions are: a) would/will they actually save and invest the difference, or just spend it on other things; b) is the emotional attachment to owning their home far more important than money. 12. In investing the difference in good blue-chip shares it is well to remember that, from time to time, the sharemarket falls (even crashes), but always recovers in the long run. The charts below show the rises in the All Ordinaries Index and average established house prices. The charts below show the make-up of household assets & debt and the upward trend in household incomes. Half the assets are in housing (either owner occupied or investment dwellings), and yet the earnings on these are far lower than in superannuation or direct shares. Fortunately, the proportion of these better yielding investments is growing as a share of total household assets. 13. Now let's look at some examples. One option is to buy (with 10% deposit) or lease an established house worth $475,000 in the year 2007. Assume inflation will average 4% over a 15 year pay-off period , and interest rates will average 9%, bearing in mind the cyclically low rates of inflation and interest rates in the 2001-06 period that are unlikely to continue over the next 15 year period. a) Buying @ $47,680 per annum fixed over 15 years Deposit (say 10%) $ 47,500 Interest $ 286,500 Principal $ 427,500 Plus "forgotten" costs $ 427,500 (see Note 15) True total outlay $1,189,000 The value of the home in 2022 (15 years hence) would probably be around $1,230,000 and that is what another home the same size and type of location would cost in 2022 as well. In 2022, the home owner has an investment of $1,230,000 and a nominal capital gain after costs of $468,500. But this doesn't include hidden expenditure of some $427,500 as explained in Point 15 later, suggesting a net profit of just $41,000! Not much, so buying a home is a case of forced savings not a good investment b) Leasing @$21,375 pa initially, rising each year, and investing the difference in shares, assuming an average cumulative gain (capital gain and reinvested dividends) on the growing portfolio of 14.3%5 If lease costs are assumed to be 4.5% per annum of the value of the home being leased (with the home value and, therefore, lease costs increasing over the 15 year period at 4% p.a) then the lease paid over the 15 years will be $427,975 - a lot of money of course. But with $47,500 initial capital plus the difference between paying off the home and leasing ($286,025) being invested in shares (including re-investing the dividends and bonus shares) then the investment at the end of 15 years should be worth around $1,402,400 in the superfund, less taxes or a net $1,192,040. This is a profit of $787,720 But remember, around $427,500 costs over 15 years are involved in "forgotten" or "hidden" costs with home ownership. So, if the lessee was to invest these equivalent outlays (in more shares) that a home owner has to find in addition to interest and capital repayments, any comparison becomes truly embarrassing. At the end of the first 15 years the lessee would have an extra $1,465,000 less taxes or $1,245,250 on top of the aforementioned $1,192,040, totalling $2,437,290. This is virtually double the net worth of the home owner at the end of this 15 year period. The difference is mind-boggling. 14. In the above example, buying a $475,000 home with a $40,000 deposit should result in a fully-owned home worth $1,230,000 at the end of 15 years. If the home was leased, then investing the difference should result in an investment worth $2,437,290 at the end of 15 years. At the end of 15 years the lessee could pay cash for a $1,230,000 home and still have $1,207,290 in the bank (or, preferably, superfund)! If you then start with this $1,207,290 for the next round of 15 years (now owning a home outright with no lease payments), then at the end of another 15 years - that is, 30 years from now - you have a home worth $3.2 million and investments worth $6.6 million (after superfund tax) without putting any extra savings in each year! You could retire in luxury with this fortune. The above conclusions would not vary if a more thorough/vigorous exercise was carried out. On the one hand, the assumptions about the earnings rate on investments (difference between leasing and owning) may be too optimistic, but calculations on ownership costs are understated, as elaborated in Point 15 below. 15. The "forgotten" or "hidden" costs of home ownership include: a) transfer costs (real estate agent fees, conveyancing fees and stamp duty) three or four times over 30 years, given that people own homes on average for around 7-8 years before exchanging them: b) maintenance costs (huge): c) alterations & additions to the home (average $120,000 over 30 years): d) rates (except water): e) insurance (except contents, as they have to be insured by lessees also) These are massive over each 15 years for home ownership. Let us start with maintenance. With home ownership, we do not put a dollar value on our DIY time . But the cost of "maintenance" on the basis of average household income per hour worked in the workplace is $23,000 per year (based on ABS statistics on hours of household maintenance work) plus materials. Over 30 years, this alone is (in today's value terms) around $690,000. In this calculation, I have only included 70-75% of the "maintenance" hours, assuming some of the maintenance could be regarded as hobbies or therapy - or would still need to be done as part of a lease of a dwelling (preferably outsourced for lower costs ). Not to forget the average $120,000 in additions/alterations paid to builders. The other costs are also significant: transfer costs (four times in 30 years) would be around $110,000 (today's prices); rates and insurance (except contents) add another $55,000 over the 30 year period. These are in today's money terms. So, around $427,500 costs of owning homes over each 15 year period are involved in "hidden" items in the form of maintenance, alterations and additions, transfer costs, rates, insurance etc. 16. Owning a home as the main basis of retirement is well short of reality. Let us look at a case-study retirement. Assume: a 1945 born male baby-boomer retiring in 2010 at aged 65 years of age (partner having retired 5 years earlier); final year income being Australian average household income then around $124,000 in 2010 (c.f $107,000 in 2007); owns the average home (c. $535,000 in 2010, c.f. $475,000 in 2007); draws no old-age pension at retirement; aspires to maintain investment income of one-third of prevailing average household income (rising as that is, year by year) until death and pass on capital to children 17. So, the case study retiree requires: $41,333 per annum in 2010, rising to $69,000 per annum in 2022: $827,000 in assets (if owns home as well) from which to draw 5% after tax income that keeps pace with rising inflation and standard of living: $1,362,000 in assets (if leasing home). In brief, a dignified retirement with own home, no debt and a third of the prevailing average household income each year until death suggests assets of: * In 2000 around $ 470,000 * In 2010 around $ 827,000 * In 2022 around $1,800,000 The Australian average is on track for half to two-thirds of these amounts at best! Singaporeans are on track for double (or more) of the above assets at retirement due to much, much higher annual savings (36% of income c.f 9% for Australians) during their working life. Minimum savings levels for one's entire working life is 15% gross annual income to have a dignified, self-sufficient retirement. A guide to comparative returns in the recent past and near future is shown below. Over the longer term, shares always win. 17. If individuals or couples ought not to own homes, who should or will own dwellings and why? In essence, the same institutions that now own office blocks, shopping centres, factories, warehouses, hotels, tollways and other infrastructure are beginning to own residential dwellings, i.e: property trusts, pension funds, life offices, etc in which the public invest. Why would they own them? The main reasons are that: some individual investors love property as an investment and the returns are fair to good as the previous table on Investment Returns showed: pension funds and life offices like to have prudent and "balanced" portfolios of shares, property, bonds, cash, etc on behalf of conservative superannuants. Given that returns vary year to year on different investment and that there is always a proportion of a fund's members retiring each year, then having "all one's eggs in the one basket" may not be the best for a policy holder retiring in a given year. 18. So what to do? a) Do not assume that owning a home is better than leasing, in financial terms. And please don't pass on this furphy to yet another generation! b) Do not assume that, on retirement, owning a home is enough or even the main backstop: remember retirement can now be for 15-20 years or more, and a big nest egg for investment is critical. We need a nest egg twice the value of the average home; and that involves saving, on average, around 15% of each year's salary; or more if you have left it later in life to start serious planning for retirement. c) We need to separate emotion from financial sense, but balance them for our own individual happiness. The writer has owned five homes before doing the homework outlined in these "points to ponder"! So, owning one or two homes is probably good for the emotional part of life: one of which will probably be regarded as the "dream home" or satisfying the "Australian Dream" (of home ownership). d) If deciding to lease, you will need to have tenacity and patience for some time yet because there are not many dwellings available for lease (as distinct from renting) because we are well behind the USA, Canada and Europe in this regard. And, remember, the difference between leasing and owning must be invested to make the exercise worthwhile. e) Renting is still a viable and sensible option for "short" stays eg just leaving home, on assignment somewhere, first few years of marriage, etc, etc. 19. Terrified of selecting shares on the Stockmarket? Don't try to pick winners. The returns quoted in Points 13 and 16 are using indexed results. All you have to do is ask your stockbroker to buy shares that match the index (preferably All Industrials Index in Australia which matches the Dow Jones) and International Shares. Then sleep nights without worrying. And don't worry with occasional sharemarket falls (or crashes); dividends are usually still paid, and the value of the (indexed) shares always recovers and goes higher. 20. But isn't the home free of capital gains tax and shares are not? Yes, but: both the home (principal and interest) and shares are bought from after tax income anyway; so no advantage there. shares only attract capital gains tax if you sell them - and why would you sell them, even when retiring (you are then living off dividends). Using your superannuation fund attracts lower taxes for fresh inputs than fresh inputs into capital and interest repayments on owning a home (after tax income!). 21. For those that think the price of homes always goes up, they are right most of the time. But it is interesting to note in the following exhibit that most of the rise in the price of houses occurs in booms which surface only every 15 years. So timing is (nearly) everything. Read Phil's full report More info: IBISWorld

My Pet, Bull

I met him at a wedding…
Boozing like pig..
Again met him near “Niromi” DANSELA..
On a fullmoon wesak day…
Eating like a pig..

Very soon he became intimate with me..
Then I realised…I’m wrong…
He is not a pig….he is a bull…
He was always around me. at work. after work. Weekends…where ever I go…

Then I decided to leave this animal …
And came to Melbourne….
Bad deeds in life, you can not avoid..
Come after you like a wheel of a bullock cart coming behind a bull.

Worst part in my life..
I ended up living in cattle shed with the bull…
I did not have any options in my life
Started treating it as my pet…BULL

The 4GB Windows Memory Limit: What does it really mean?

People who like to know about this pls check our Tech-Blog .

Cheers,
Jumbo.

My Doggy - Part - I

I met him at a pub in the pearl of the Indian ocean,
I'd come to town to have a drink, I'd just received my pay.
The Orchid bar was quite deserted, just this other fella and me,
And I reckoned by the way he looked he needed company.

I introduced myself to him and bought a round of white,
He looked at me said,"Your welcome dude."
The legend which started from that day still continues
Even though attacks from many paws

Mo Quit Drinking

Mo walks into a bar in Melbourne and ordered 3-glasses of beer and sits in the backyard of the room, drinking a sip out of each one in turn. When he finishes, he comes back to the bar counter and orders 3 more.

The bartender asks him, "You know, beer goes flat after I fill it in the glass; it would taste better if you buy one at a time." The man replies, "Well, you see, I have two freinds in Sri Lanka while I 'm in Melbourne.
When I left Sri Lanka, we promised that we'll drink this way to remember the days when we drank together. The bartender admits that this is a nice custom and leaves it there. Mo became a regular in the bar, and always drinks the same way.

He order 3-Beers and drinks them in turn. One day, he came in and ordered only 2-Beers All the other regulars notice and fall silent. When he comes back to the bar for the second round, the bartender says," I don't want to intrude on your grief, but I wanted to offer my sincere condolences on your great loss. " Mo looked confused for a moment, then he laughs ....
"Oh, no," he, said,

"Everyone's fine - both my friends are alive" .

" The only thing is I just quit drinking!!!

Trade Forex

Hi Guys,
Small idea for you guys....Start trading on foreign exchange. There are lot of on line sites available now for this. I recommend you to go to www.oanda.com this is a US based company registered with Securities Exchange Commission in US, and with a good asset base and stable company. You can try trading some currencies. They have game accounts too.. that’s 100% free. First you can give a try. Actually I also tired once. And still I have an account opened with them. I did not do it very regularly and was never in constant touch with the market and could not do much there. But if you can spare few minutes per hour you can make some good profit. They allow you to gear up to 98% that means if you deposit 1000USD you can purchase currency up to 98,000USD. But be don’t gear up to that level, You may go up to 80% and have a cushion to absorb market fluctuations , if not you will loose every thing...

One more idea, guys who do not have time for trading, invest some money in a managed portfolio, you may start with $1000 or more and keep contributing some thing monthly, if you select a high yielding portfolio (You have the risk), though you don’t make money like trading, after some time you will have some wealth created for your self, definitely better than save in a bank (don’t forget the risk factor)…

Business Analysit

I found out this article

http://www.irm.com.au/What_is_a_Business_Analyst.PDF

I had a chat to Harindu yesterday about BA training programmes...

you can find more infor from

http://www.irm.com.au/

Good Luck

Dual Citizenship: President to consider lowering fee

The above captioned article was published in today's Dailynews in Sri Lanka and you can view the full article at http://www.dailynews.lk/2007/09/27/news15.asp .

I guess this news may give a smile to our faces as I guess most of the contributors to this blog are looking for dual citizenship. But my intention of posting this article here or bringing this to your attention is not give you a good news.

Actually president has made this statement at a Sri Lankan gathering in New York while his visit to UN assembly. According to the article "The expatriates pointed out that they were keen to respond to the President's earlier call to Lankans living abroad to assist the country's development process. However, the high rates charged by the Lankan immigration authorities for the dual citizenship procedure was a stumbling block, they said".

What is this “high charges”? Actually I am not sure the fee for this, but I believe this is not more than $5,000 for a family unit.
Do you guys think it is too high to pay to obtain the citizenship of your own country? No body charged you to give you the citizenship at your birth and you lost it simply because you wanted a citizenship of another country to fulfill your personal goals. Interestingly they have mentioned that by giving the citizenship to them, Sri Lanka can use their skills and knowledge in the country instead of using the foreign consultants. My question is,
Would they come back to Sri Lanka to work after obtaining citizenship?
Even if they come, would they like to work at the salary paid to an ordinary Sri Lankan without complaining?
My answer is definitely no. They will not come to Sri Lanka; this will be an opportunity for them to obtain dual citizenship without much effort or rather will make similar to buy another suite from their favorite shop.
If they come, they will demand the same salary or at least closer to that. So basically they will use this as a break from their current jobs and to have a luxury life in Sri Lanka for some time and salaries will be repatriated to their usual bank accounts.

So do you guys think that it is worth to reduce the fee? I’m not talking about how much it worth to our wallets. My genuine idea is government should increase it annually and charge more. Sri Lanka should not be a victim of creating prestige for expatriates by giving them dual citizenship at a lower price.
If you were ready to pay to obtain a citizenship of another country by paying, you should be ready to pay more than what you paid for that to regain your citizenship in Sri Lanka. Because what we are doing at the moment , we do on the base of what we acquired in Sri Lanka.

My personal opinion is, by reducing the fee; Sri Lanka can not invite the expatriates. That is not the barrier for them to come back to Sri Lanka.

Applying for Australian Citizenship - Test

Government of Australia have changed the rules related to citizenship application procedure. These rules will be effective from 1st of October.

http://www.citizenship.gov.au/applying/index.htm quotes

"On 12 September 2007, the Australian Parliament passed the Australian Citizenship Amendment (Citizenship Testing) Bill 2007. This means from Monday 1 October 2007, most people will be required to pass a test before they apply for Australian citizenship by conferral. See: Citizenship Test
New application and information forms will be available from these webpages from Monday 1 October 2007. You must use these forms if you apply on or after 1 October 2007.
If you apply for citizenship before Monday 1 October 2007, you will not be required to sit a test. You should use the application forms currently on these webpages.
If you post your application from a metropolitan area of a capital city to the department in the same metropolitan area, you need to post it by Thursday 27th of September 2007. If you post your application in a country location to the Department in a metropolitan area of a capital city in the same State you need to post it by Wednesday 28th of September 2007."


Information booklet which is needed to prepare for this test can be ordered from the following link

http://www.citizenship.gov.au/test/becoming-citizen-order.htm

or download a pdf copy from

http://www.citizenship.gov.au/test/resource-booklet/citz-booklet-full-ver.pdf

Good luck in facing the test!!!

Melbourne Property Investment

Hope this will be useful for every body looking to invest in Melbourne Properties,

As inner city Melbourne investment property development opportunities lessen, Melbourne developers are turning their sights toward the city's middle and outer ring suburbs. Contact Australian Property Investor Planning for more details of current and future property investment opportunities in the growth areas of Melbourne property market.
2007 Overview:
With Melbourne's property market following the national trend of a stabilisation phase that's set to continue into the forseeable future, its paramount for investors to consider potential long-term real estate prospects based on their overall historic performance.
Stick to property investing fundamentals and ignore opinions as to where the market is going, whether good or bad. Buying strong investment properties is more about asset selection rather than timing. Timing is impossible to consistently get right. Don't wait for the right time to buy. Wait for the right property to buy.
The important thing at all times is to focus on the value of the land, because it's land that you can't create more of. The scracity of land is what drives property prices, so investor should seek properties with more land value as well as some scarcity or uniqueness.
Like any real estate investment, locating and purchasing the right property in the right suburb requires careful consideration and research. Buyers should look for suburbs that have strong positive attributes. For example overall appeal, good public transport, good schools, shops, close to arterials and above all, invest in areas that are conistently showing a growth in population. For example, South East Queensland.
Melbourne residential and investment property sector is performing well and is predicted to continue doing so. Here are some reasons why:
Affordability. Melbourne apartment prices have historically been approximately 20-25% more affordable than Sydney, however the current price difference inner city apartments is over 45% meaning there is plenty of upside potential in Melbourne.
Melbourne home prices are rising from a lower base providing a higher proportionate gain.
Pent up demand. Many leading economic forecasters believe there is an undersupply of new housing in Victoria.
High consumer confidence motivates people to make more long term decisions such as purchasing a new home.
Improved immigration numbers. Melbourne's population is now increasing at a faster rate than many other capital cities leading to an increase in the demand for housing. Population growth is around 4%.
Returns on Investment Properties
Real estate investors in Melbourne should be aware that the prime reason for investing in property is capital growth, and capital growth is driven by the scarcity of an asset. When selecting a property for capital growth there should always be a consistently greater level of demand than supply. Melbourne high-rise inner-city units lack scarcity value at the moment because they are ‘a dime a dozen’. This factor is also a major influence on the level of rental returns achievable. Hundreds of virtually the same style of units are now on the market. Most of these buildings are at a risk of rapid architectural obsolescence, which is likely to further undermine capital appreciation.
In addition to their lack of scarcity value, the vast majority of high-rise inner-city units are occupied by tenants rather than owner occupiers. This is likely to create problems for investors. Owner occupiers drive the market from a price perspective because they usually have a greater financial and emotional stake in their properties than tenants. Unless the current ratio of approximately 70% tenants and 30% owner occupiers in inner-city units reverts to the usual 30% tenant to 70% owner occupier ratio we are unlikely to see significant or consistent price growth in this sector of the unit market – especially in the $350,000 to $500,000 price range. Future price growth in mid priced CBD units will depend on achieving a consistently higher level of demand from owners occupiers and limiting the pace of development.
Both the lack of scarcity value and inflated asking prices on initial sales means significant numbers of apartment re-sales in multi-unit developments are being recorded at substantially lower levels than the original purchase price. In recent years in Melbourne, some owners have sold their units for up to $50,000 less than what they originally paid, even in “name” buildings.
Most of the value of these apartments, is tied up in the building, rather than the land component, and this, together with the abundant supply and competition from similar units in nearby towers, are additional factors in the lower re-sale value. Strongly rising land value is one of the most important prerequisites for good capital growth.Without it, the potential for a property to rise in value above inflation is severely limited. In many run-of-the-mill complexes the land component accounts for only 10% of the property’s total value. By contrast, most houses in the inner and outer suburbs have a land component that forms at least 60-70% of the total value of the property.
Recent analysis on the median price growth of Melbourne apartment complexes in St. Kilda Road, the CBD and Southbank since 1990 clearly shows that homebuyers and investors are not receiving the capital growth returns they had expected. The analysis, conducted by The Age newspaper and based on figures published by Mlebourne based company Cityscope Publications, compared the price and time difference between the first and the last sale of apartments in buildings with more than 20 residences. It found that the 2.66% overall rise for these three areas was far less than the median house price rise of 8.9% a year for houses and 9.1% a year for suburban apartments.
CONCLUSION
Remember, that when you select a unit as an investment, succumbing to the lure of tax savings is a fundamental mistake for investors. You do not attain financial independence through saving tax - you gain financial independence through the ongoing capital growth of your assets.
The Annual Return Index measures the capital growth of an investment property togther with net rental income, to give an accurate comparison between Australia's cities. Melbournes residential property has made a steady start in 2007 and will continue to do so in the long term. Investors should be very selective in terms of suburbs they consider for property investment. As always, look at the level of infrastructure and population growth of any new areas in Melbourne. Comparisons between the Capital cities are best considered over 7 to 10 year periods with Melbourne, Sydney and Brisbane continuing to be good options for property investment in the future. Melbourne Property Investment

Quoted from "Australian Property Planning" website

Starting a Company In AUS

Dudes,

Thanks Rasika to initiate a blog for us. This will be test post from me and I thought to include the following.
If one of us is thinking of starting a company in Aus ( some of our guys have already started), I hope these links will be useful. I got this from Chamal and if somebody else have more information pls add 'em to this post.

• How you can open a company - http://www.asic.gov.au/asic/asic.nsf

• More info : http://www.incorporator.com.au/starting-company-creating-how_to-Australia.asp

• Then find a good and reasonable shelf company from following website : http://www.aussieweb.com.au/directory/directory.aspx?cid=2125&lid=33180

Cheers,
Jumbo

Welcome

Hey Guys,

Guess this is a good way to post some of our important events over the net to share with everyone. Well then again we need to define "Important Events" :). Thats fine will just keep going n see how things work out.. So ppl with important events keep posting,,rest keep commenting...

Cheers!!!