Any property gurus?

[jimmyxr6t04]

Also, don't forget that LMI is also tax deductible on an investment property. So, whilst it's good to have a bigger deposit, sometimes it's worth borrowing that little extra and keeping your cash in your account, working against your own mortgage.

I think it's deducted over the first 5 years though? so, 20k LMI is a 4k tax deduction every year for the first 5 years. In the ACT, stamp duty is also tax deductible in the first year, so if buying purely for investment, it's a good place to look at.

For my most recent IP, i managed to have tax deductions of about 40k in the first year, so my last tax return was a good one!

Maybe not as affordable as Melbourne, but some decent houses with very good rent return.

[stevz]

I laugh at those who think capital growth is an infinite thing.
If property doubles every 7 to 10 years like the spruikers will have us believe, eventually 95% of the population will be locked out of the market and housing will only be affordable to the rich and elite. Our wages certainly don't double every 7 to 10 years and the cost of living gets higher and higher so eventually something will have to give.
Ridicule me all you like. Some people will learn the hard way.

[Stefan]

Originally Posted by stevz

I laugh at those who think capital growth is an infinite thing.
If property doubles every 7 to 10 years like the spruikers will have us believe, eventually 95% of the population will be locked out of the market and housing will only be affordable to the rich and elite. Our wages certainly don't double every 7 to 10 years and the cost of living gets higher and higher so eventually something will have to give.
Ridicule me all you like. Some people will learn the hard way.

It was the end of the world not long ago too...never happened....

And most are already locked out of the market...I don't live in great suburb, 30 min from, Sydney CBD...house price? $1 - $1.2M minimum. I wonder how many first time buyers are buying houses here? Nil.

House price in 2003, $650K would have got you a 3 bedder.

Suburb 5 minutes away a bit more upmarket, 2003, 2 bedroom brick house, fairly rundown I paid $720K, Same house could not be bought for under $1.4M today.

And the market had a correction in that period. but ten years on still going up and up.

So yes my guess is 10 years it will be near impossible to get into the Sydney property market.

[XB GS 351 Coupe]

Originally Posted by stevz

I laugh at those who think capital growth is an infinite thing.
If property doubles every 7 to 10 years like the spruikers will have us believe, eventually 95% of the population will be locked out of the market and housing will only be affordable to the rich and elite. Our wages certainly don't double every 7 to 10 years and the cost of living gets higher and higher so eventually something will have to give.
Ridicule me all you like. Some people will learn the hard way.

Mate you are a clown, property has steadily gone up, if you are renting you are paying someone elses property off for them with your money, bough my first property for $165K, payed it off in ten years while living in it, sold it on for $379K exactly 10 years later, (so your guess of it only doubling in 10 years is a little off), bought a block of land in Sydney and payed cash, build a house and had a small mortgage, lived in it for 8 years and sold it for $590k.

Last week bought 2.5 acres 5 minutes from Port Maquarrie and payed cash with my spare change, still have enough to build a house and a shed……so yeah my bubble will bust when I am living on 2.5 acres 10 minutes from the beach with my 15m x 12m shed and 40square house and no debt.

Life will be hard to take

[buggerlugs]

Originally Posted by stevz

I laugh at those who think capital growth is an infinite thing.
If property doubles every 7 to 10 years like the spruikers will have us believe, eventually 95% of the population will be locked out of the market and housing will only be affordable to the rich and elite. Our wages certainly don't double every 7 to 10 years and the cost of living gets higher and higher so eventually something will have to give.
Ridicule me all you like. Some people will learn the hard way.

"The dumb nation", "We're Screwed" , "2013- The beginning of the end of Australia" So why are you still here If this country is going to the pack as you describe, what's holding you here ? Have you had a bad Real Estate experience ? You sound very bitter...............

[stevz]

Originally Posted by buggerlugs

"The dumb nation", "We're Screwed" , "2013- The beginning of the end of Australia" So why are you still here If this country is going to the pack as you describe, what's holding you here ? Have you had a bad Real Estate experience ? You sound very bitter...............

Did it ever occur to you that I'm probably just being realistic? Both the domestic and global economies over the last few years have been a giant boiling pot and all the indicators point to a bloodbath. Do a bit of research and you might learn a few things. I would love to be positive about things but sadly there is no evidence to support it.
Live in denial all you like, but I guess I would be in denial too if I was sucked in by the hype and leveraged to the hilt with investment properties.
At the end of the day it's your money not mine, so good luck with it and all the best.

[buggerlugs]

Originally Posted by stevz

Did it ever occur to you that I'm probably just being realistic? Both the domestic and global economies over the last few years have been a giant boiling pot and all the indicators point to a bloodbath. Do a bit of research and you might learn a few things. I would love to be positive about things but sadly there is no evidence to support it.
Live in denial all you like, but I guess I would be in denial too if I was sucked in by the hype and leveraged to the hilt with investment properties.
At the end of the day it's your money not mine, so good luck with it and all the best.

So are you a home owner or do you rent ?

[stevz]

Originally Posted by buggerlugs

So are you a home owner or do you rent ?

I'm an owner

[XB GS 351 Coupe]

Originally Posted by stevz

Did it ever occur to you that I'm probably just being realistic? Both the domestic and global economies over the last few years have been a giant boiling pot and all the indicators point to a bloodbath. Do a bit of research and you might learn a few things. I would love to be positive about things but sadly there is no evidence to support it.
Live in denial all you like, but I guess I would be in denial too if I was sucked in by the hype and leveraged to the hilt with investment properties.
At the end of the day it's your money not mine, so good luck with it and all the best.

What dooms day gospels are you getting brain washed by??

Dooms Dayers been going on about this for 60 years or more and yet we keep going forward, your attitude and actions is what will make you go forward or backwards it's much of a self fulfilling prophecy, your avatar and signature indicate to me that you have some issues that can not easily be resolved.

May be a tin foil hat will help and make you feel better, but you need to change your outlook if you want to have good things happen to you. Doom and Gloom will not get you anywhere, and you only have one life why waste it being negative??

[stevz]

Originally Posted by XB GS 351 Coupe

What dooms day gospels are you getting brain washed by??

Dooms Dayers been going on about this for 60 years or more and yet we keep going forward, your attitude and actions is what will make you go forward or backwards it's much of a self fulfilling prophecy, your avatar and signature indicate to me that you have some issues that can not easily be resolved.

May be a tin foil hat will help and make you feel better, but you need to change your outlook if you want to have good things happen to you. Doom and Gloom will not get you anywhere, and you only have one life why waste it being negative??

No need for insults....

You do what you think is best with your money and I'll do what I think is best with mine. How does that sound?

People also laughed at and ridiculed the guy who predicted the gfc, but he was right.

[XB GS 351 Coupe]

Originally Posted by stevz

No need for insults....

You do what you think is best with your money and I'll do what I think is best with mine. How does that sound?

People also laughed at and ridiculed the guy who predicted the gfc, but he was right.

Did I miss something, or are you imagining things??

What insults??

And where did I tell you what to do with your money??

I think your imagination could be running wild??

[GASWAGON]

Originally Posted by stevz

No need for insults....

You do what you think is best with your money and I'll do what I think is best with mine. How does that sound?

People also laughed at and ridiculed the guy who predicted the gfc, but he was right.

I doubt many would remember 'Dave289' Stevz that was like 6 yrs ago now!

Anyone looked at the aussie house price chart lately.....Surely it cannot go any higher?

[Auslandau]

Originally Posted by stevz

People also laughed at and ridiculed the guy who predicted the gfc, but he was right.

YES ...... because the 'guy' had been saying it for 30 years! (Who ever that guy was). Things go up, things go down, sometimes more severe in both directions. Of course there will be a downturn. There will also be an upturn. There .... I made a prediction!

[GASWAGON]

Originally Posted by XB GS 351 Coupe

What dooms day gospels are you getting brain washed by??

Dooms Dayers been going on about this for 60 years or more and yet we keep going forward, your attitude and actions is what will make you go forward or backwards it's much of a self fulfilling prophecy, your avatar and signature indicate to me that you have some issues that can not easily be resolved.

May be a tin foil hat will help and make you feel better, but you need to change your outlook if you want to have good things happen to you. Doom and Gloom will not get you anywhere, and you only have one life why waste it being negative??

Whilst I really like your approach the truth of the matter is the world is in a ******** of debt.....And its all because of easy credit and super low interest rates all created by the mega banks.......Soon mortgages will not be 25 yrs but 30 and 40 and maybe even 50yrs + interest.......The banks have ruled the world for 100's of years and this time they're taking the kitchen sink with them!

Personally I would sit back a few years and wait and see what devastation occurs after Ford/Holden and maybe even Toyota close......I really don't think its going to be pretty?

[XB GS 351 Coupe]

Originally Posted by EF_6

Whilst I really like your approach the truth of the matter is the world is in a ******** of debt.....And its all because of easy credit and super low interest rates all created by the mega banks.......Soon mortgages will not be 25 yrs but 30 and 40 and maybe even 50yrs + interest.......The banks have ruled the world for 100's of years and this time they're taking the kitchen sink with them!

Personally I would sit back a few years and wait and see what devastation occurs after Ford/Holden and maybe even Toyota close......I really don't think its going to be pretty?

Does not make it Dooms Day though, if I own my house and land why would I care about the rest?? I get where you are coming from, and what you are saying, but there is nothing we as an individual can do about it, we just have to work with what we have and move on.

No good being all Dooms Day, we are screwed, the world will end, why not just be happy with what we have and look after our own personal interests, could not care less about any depression, recession or banks really, nothing i can change I just have to work with it and move on to look after me and enjoy the life I have.

Originally Posted by EF_6

Anyone looked at the aussie house price chart lately.....Surely it cannot go any higher?

They said the same thing in the 60's 70's 80's etc etc I remember my parents looking at a house in the early 80's right on the water in the eastern suburbs was $165K at the time, and everyone said that was crazy, as they ended up buying a new house in the suburbs on a 1/4 acre block for around 50K.

The house at the beach would now be worth millions, the house in the burbs sold for about half a million 10 years ago.

I payed 165K for a three bedder in western Sydney, my parents thought I was mad paying that much, sold 10 years later for 379K.

And it keeps going, in 30 years time everyone will be looking back at 2013 thinking jeez wish I bought my house when they were that cheap, when you could still buy a house for under a million dollars.

[GT0132]

Originally Posted by jimmyxr6t04

Also, don't forget that LMI is also tax deductible on an investment property. So, whilst it's good to have a bigger deposit, sometimes it's worth borrowing that little extra and keeping your cash in your account, working against your own mortgage.

I think it's deducted over the first 5 years though? so, 20k LMI is a 4k tax deduction every year for the first 5 years. In the ACT, stamp duty is also tax deductible in the first year, so if buying purely for investment, it's a good place to look at.

For my most recent IP, i managed to have tax deductions of about 40k in the first year, so my last tax return was a good one!

Maybe not as affordable as Melbourne, but some decent houses with very good rent return.

Interesting about stamp duty being deductible in the ACT in the first year . It's not normally deductible period , let alone all in year 1. Income tax legislation is federal and not state/territory based so hard to understand why this is for ACT only, or are you referring to stamp duty on the mortgage rather than the property purchase. On my last property stamp duty on the mortgage was waived , that was in NSW

Do you have a link to where it says that...Not doubting you, just curious

[jimmyxr6t04]

Originally Posted by GT0132

Interesting about stamp duty being deductible in the ACT in the first year . It's not normally deductible period , let alone all in year 1. Income tax legislation is federal and not state/territory based so hard to understand why this is for ACT only, or are you referring to stamp duty on the mortgage rather than the property purchase. On my last property stamp duty on the mortgage was waived , that was in NSW

Do you have a link to where it says that...Not doubting you, just curious

I'd have to go googling again to find the relevant links, but trust me, i researched the hell out of it!

But essentially, the land in the ACT is leased on a 99 year crown lease, and not actually 'owned'... So the entire portion of stamp duty on the property is a 100% tax deduction.