Australia housing bubble - Page 80

hackney · 13-02-2023, 03:40 PM

Quote:

Originally Posted by hayseed

Very True, One of Ours (which is Mortgage Free) has cost us Money over the Last 2 Financial Years.

We sold both @ a profit, but had to pay capital gains tax.The aim was to pay our main house mortgage off.You don’t need to clear the mortgage on the investment, because @ the end of the day you will clear it anyway with a profit once all disbursements are made.

Citroënbender · 13-02-2023, 03:52 PM

I was involved with one for about ten years, in a strata scheme. The greater costs were building-driven; one due to inadequate SOW vs sinking fund and the other due to remedial works by complete oiks who caused lot owner’s double glazing to fall inwards and nearly kill a tenant.

Several tenancies in that time, only one had “issues” and frankly I think it was more due to their recreational interests than much else. When I let the managing agents spec a maintenance job it was invariably dearer in the long term than going over-spec by their expectations. Gross rental was about half a Landcruiser per annum and the longest time empty eight weeks.

I wouldn’t describe it as a goldmine, but it was a steady earner.

kevino · 13-02-2023, 03:58 PM

Be riskier now with falling house prices?
No capital gain for places bought last couple of years?

prydey · 13-02-2023, 04:03 PM

You can justify it to yourself however you like.

The rental argument is the most common one wheeled out, and yes, some people do prefer to rent, however a large number of renters do so because they can't afford to buy. The irony is its investors that are part of driving up house prices.

prydey · 13-02-2023, 04:12 PM

Those who justify it as 'providing a service', do you rent it out for the maximum you can get or do you just rent it out to cover your costs?

hackney · 13-02-2023, 05:01 PM

Quote:

Originally Posted by prydey

You can justify it to yourself however you like.

The rental argument is the most common one wheeled out, and yes, some people do prefer to rent, however a large number of renters do so because they can't afford to buy. The irony is its investors that are part of driving up house prices.

I am not going to debate this subject with you,as you come up with some really silly questions.Why should I have to ‘justify’ myself?I have been through the situation & know exactly how it operates, you however seem not to understand any of it.Debate over.

hackney · 13-02-2023, 05:02 PM

Quote:

Originally Posted by kevino

Be riskier now with falling house prices?
No capital gain for places bought last couple of years?

I really can’t answer that as I have not been in that situation. I can only go on my situation & experience.

Itsme · 13-02-2023, 05:05 PM

Quote:

Originally Posted by prydey

Those who justify it as 'providing a service', do you rent it out for the maximum you can get or do you just rent it out to cover your costs?

I will be quite honest with you, having investment properties is no different to having share investments or money sitting in banking institutions making profit for you.
You can sit on the high moral ground if you want to and get nowhere or move forward in life and make a nest egg for yourself.
One thing I've learned in life no one looks after you for nothing, you look after yourself, harsh comment I suppose but that is the way I see it after being screwed by many people including some family members.

Cheers.

hackney · 13-02-2023, 05:10 PM

Quote:

Originally Posted by Itsme

I will be quite honest with you, having investment properties is no different to having share investments or money sitting in banking institutions making profit for you.
You can sit on the high moral ground if you want to and get nowhere or move forward in life and make a nest egg for yourself.
One thing I've learned in life no one looks after you for nothing, you look after yourself, harsh comment I suppose but that is the way I see it after being screwed by many people including some family members.

Cheers.

This happens a lot with people owning investment properties, for some unknown reason, you seem to be fair game.They seem not to understand it, & think we are stopping people from entering the market OR making it to expensive.Those ‘bloody’ thieving LLs, they must be so rich.I get really sick of having to answer these self righteous individuals, thinking we are the scourge of the earth.

**FTE217** · 13-02-2023, 05:59 PM

Flabbergasted prydey quoting as you did.
It takes all types and Thankfully so.

**fordomatic** · 13-02-2023, 06:14 PM

If you don't do it, someone else will, always look after number one, that's one thing I've learned in my short life so far. You don't make friends in business.

blueoval · 13-02-2023, 07:04 PM

This is purely my opinion & thoughts.

Unfortunately a lot of the 'have nots' will always question the financial ethics and morals of those that 'have' even if it's perfectly legal for the 'haves' to do so. Until the 'have nots' actually play the game themselves and get in on the action, they are then the ones being questioned on the morality of negative gearing and buying more than their 'fair share' of properties to rent out by the next generation of 'have nots'. It's been that way for decades. Not to mention the generational wealth kids have inherited from the Babyboomers since the 50's and 60's. That's a massive leg up when you're getting started out in life.

I admit, it wasn't easy for me to get in the game when i started. We bought at the height of the last GFC (2008). Got a loan with the addition of a small amount of financial support from family and bought a poverty pack unit on a community title. Used the first home owners grant, lived in it for 12 months doing cosmetic simple upgrades, rented it out for a further 12 months before selling it and making a little money on it to help refinance and pay for a brand new home.

The point Im trying to make here is, there was no point me getting annoyed, calling out people moralities for making their investments work for them or being jealous with LL's seemingly 'getting richer' and some how buying more and more property, expanding their portfolios and improving their investments dreams. I just worked out how to play the game too to better our situation but ensuring we were adaptable to changing conditions.

We made an effort to avoid the 'poor me/its not fair' mindset and changed the way we saw others who 'seemed' to be in a better position than me. we started with whatever we could afford, lived within our means and chipped away from there.

This is my only 2c input I have on the matter.

**FTE217** · 13-02-2023, 07:54 PM

SPOT ON brother !!

Sent from my iPhone using Tapatalk

BENT_8 · 13-02-2023, 09:29 PM

Anyone who says investors aren't inflating the market are only kidding themselves.
Having said that, I don't lose sleep over it as they've kept me warm at night for many years and I've treated their investment as my own, it's been a win, win.

I think the biggest problem with young people is that they make impulse decisions and want instant gratification.
Whilst entry level budget builds are well within the reach of first home buyers as my kids have shown, waiting up to 2 years for completion is a deterrent, so they go looking for established which in reality is the investor market in the current climate.
Trust me, my Daughter is one of those after instant gratification, if she knew that it would take 2yrs to get her keys she'd have probably moved on to something else as we we're originally talking mid 2022 for a contract signed in November 2021 which has become 4th qtr 2023 if we're lucky.

Covid played a big part in the housing shortage as many Aussies came home for the health cover but the bit that I don't like is the greedy landlords that are kicking people out just so they can up the rent by ridiculous amounts to new tenants, this is going on everywhere and is a big part of why so many people are sleeping in cars tonight.

b0son · 13-02-2023, 09:38 PM

Quote:

Originally Posted by BENT_8

Whilst entry level budget builds are well within the reach of first home buyers as my kids have shown

Mate, I'm not sure I'm prepared to commute from Gawler to Sydney...

BENT_8 · 13-02-2023, 09:43 PM

Quote:

Originally Posted by b0son

Mate, I'm not sure I'm prepared to commute from Gawler to Sydney...

Thats a choice too..

Cant blame you for that though, Sydney is a ****hole that I wouldn't want to commute to either.

kevino · 13-02-2023, 09:45 PM

Each to their own
I did my penance in my first home in Blacktown a fibro no less
Pulled out of Sydney no zero desire to go back

On the nbn news last night there was a segment on a Syd western suburbs couple paying 250$ a week on tolls just to get to work

Ffs

b0son · 13-02-2023, 09:58 PM

Quote:

Originally Posted by BENT_8

Thats a choice too..

Cant blame you for that though, Sydney is a ****hole that I wouldn't want to commute to either.

Been there, done that. It was an eye-opener when I moved to Adelaide. Driving through Gawler and houses had dirt and rocks for front yards, and then when I made it down to Adelaide and tried to do some shopping on a Friday night and everything was shut! Then that first shower and the water smelt like it came from the council pools...

Every corner of this country certainly has a unique vibe.

blueoval · 13-02-2023, 10:32 PM

Quote:

Originally Posted by b0son

Been there, done that. It was an eye-opener when I moved to Adelaide. Driving through Gawler and houses had dirt and rocks for front yards, and then when I made it down to Adelaide and tried to do some shopping on a Friday night and everything was shut! Then that first shower and the water smelt like it came from the council pools...

Every corner of this country certainly has a unique vibe.

I remember when the water from the tap tasted like galvanised iron

We definitely do have a vibe here you have to get used to.

**Captain Stubing** · 13-02-2023, 11:02 PM

Quote:

Originally Posted by prydey

Those who justify it as 'providing a service', do you rent it out for the maximum you can get or do you just rent it out to cover your costs?

We built a sort of duplex, it’s a dual occupancy dwelling, so a 3 bedroom and a 2 bedroom dwelling under the one roof. It cost us a lot to finance, lengthy building delays etc.
The property manager keeps telling us to raise the rent by $10 or $20 per week at different times of the year, but I say no. I keep the rent at the original signed contract, until they decide to move. Then I will set the rent at the current market value, and leave it at that for the time they spend there.

Another house has failed us, as the tenant is an angry drunk, the rent is waaay too low, we have an insurance payout for his damage, but can’t yet get him out to repair the house.

Another we have, the tenants are fantastic, and we bought this house as a possible retirement home, being so close to Moreton Bay. They wanted to sign a four year lease, so we included a $20/wk rise on the last year to factor in for rising interest rates.

I’m no expert or entrepreneur, but I don’t want to strip people of their funds to make me a few hundred bob richer.

Hopefully one day we can sell one to pay off our mortgage.

blueoval · 13-02-2023, 11:38 PM

Quote:

Originally Posted by Captain Stubing

We built a sort of duplex, it’s a dual occupancy dwelling, so a 3 bedroom and a 2 bedroom dwelling under the one roof. It cost us a lot to finance, lengthy building delays etc.
The property manager keeps telling us to raise the rent by $10 or $20 per week at different times of the year, but I say no. I keep the rent at the original signed contract, until they decide to move. Then I will set the rent at the current market value, and leave it at that for the time they spend there.

Another house has failed us, as the tenant is an angry drunk, the rent is waaay too low, we have an insurance payout for his damage, but can’t yet get him out to repair the house.

Another we have, the tenants are fantastic, and we bought this house as a possible retirement home, being so close to Moreton Bay. They wanted to sign a four year lease, so we included a $20/wk rise on the last year to factor in for rising interest rates.

I’m no expert or entrepreneur, but I don’t want to strip people of their funds to make me a few hundred bob richer.

Hopefully one day we can sell one to pay off our mortgage.

I have a rental property in SA that has a similar situation. Bloke has relationship issues. He has been behind in rent for the past 2 months. This is his third chance to sort things out and we have been nothing but reasonable and patient. The rent is $100pw lower than the market value for rent in the area and he's now disconnected his phone. We have no other option than to approach SACAT and appeal to the tribunal to have him removed. This house is connected to our SMSF which complicates things.

jstanovic · 14-02-2023, 02:00 AM

We used to rent out my missus old duplex when she moved in with me, was in a shifty area. If rent was too high no-one would apply, if rent was too low it attracted ****ty tenants, was a fine line to find the sweet spot. High turnover of tenants (maybe 10 in 13 years), 2 of them left the house in poor condition and another practically trashed the joint and almost burnt it down. We had insurance but still lost income and were forever dealing with ****.

Thank god we sold it a few years ago. Being a landlord is ****house.

On the flipside, just had a look and you can get a similar 3x1 duplex in the same area for $300k, or a 3x1 house on 700m2 for low-mid $400k. Only 15km from Perth CBD. It won't be new or flash but gets your foot in the door.

hackney · 14-02-2023, 07:10 AM

Quote:

Originally Posted by b0son

Been there, done that. It was an eye-opener when I moved to Adelaide. Driving through Gawler and houses had dirt and rocks for front yards, and then when I made it down to Adelaide and tried to do some shopping on a Friday night and everything was shut! Then that first shower and the water smelt like it came from the council pools...

Every corner of this country certainly has a unique vibe.

I use to live in Elizabeth Grove(Adelaide)when my parents first came to Australia in 1959.House were brand new then, went back in the mid 2000s, what a dump! Full of welfare tenants.So untidy, no one had any pride in their properties.

BENT_8 · 14-02-2023, 08:42 AM

Quote:

Originally Posted by b0son

Been there, done that. It was an eye-opener when I moved to Adelaide. Driving through Gawler and houses had dirt and rocks for front yards, and then when I made it down to Adelaide and tried to do some shopping on a Friday night and everything was shut! Then that first shower and the water smelt like it came from the council pools...

Every corner of this country certainly has a unique vibe.

Gawler is an old area and has only in the past 25yrs gone from country town to outer reaches of suburbia.
Must have been late when you went shopping as the city has had late night shopping for as long as I remember, suburbs is Thursday nights.
Water I'll give you, but a pura tap fixes that for drinking.

b0son · 14-02-2023, 02:41 PM

Quote:

Originally Posted by hackney

I use to live in Elizabeth Grove(Adelaide)when my parents first came to Australia in 1959.House were brand new then, went back in the mid 2000s, what a dump! Full of welfare tenants.So untidy, no one had any pride in their properties.

How do you tell the difference between them and the average Holden worker :P

**FTE217** · 14-02-2023, 03:28 PM

Quote:

Originally Posted by BENT_8

Thats a choice too..

Cant blame you for that though, Sydney is a ****hole that I wouldn't want to commute to either.

Oi holden 8

Beauty is in the eye of the beholder as they say my distant friend....
For all the negatives a big smoke presents that there are many due to size where I live you have to pinch yourself being in a city of 6M +.
There are many "pockets" that is just fantastic just as I see in all my travels around the country burbs or regional.
Where you grew up bares alot how you look at things.

BENT_8 · 14-02-2023, 03:38 PM

Quote:

Originally Posted by b0son

How do you tell the difference between them and the average Holden worker :P

Well you cant now, not since 2017, they're all dole bludgers now too.

BENT_8 · 14-02-2023, 03:40 PM

Quote:

Originally Posted by FTE217

Oi holden 8

Beauty is in the eye of the beholder as they say my distant friend....
For all the negatives a big smoke presents that there are many due to size where I live you have to pinch yourself being in a city of 6M +.
There are many "pockets" that is just fantastic just as I see in all my travels around the country burbs or regional.
Where you grew up bares alot how you look at things.

Fair call.

kevino · 14-02-2023, 03:56 PM

I m sure Parramatta Rd and Victoria Rd at peak hour are some of the joyous pockets you would like to share
Or the lovely stretch of apartment housing on off from Mascot to Redfern

But yeah
Hunters Hill
Balmain

Not bad spots

**FTE217** · 14-02-2023, 05:20 PM

Quote:

Originally Posted by kevino

I m sure Parramatta Rd and Victoria Rd at peak hour are some of the joyous pockets you would like to share
Or the lovely stretch of apartment housing on off from Mascot to Redfern

But yeah
Hunters Hill
Balmain

Not bad spots

mate, and you mentioning starting from blacktown says it all

mind you there is farfar worse and Sydney has it all haha.
I expect today some people living near that burb say its great with all new developments of the last 20yrs but yer, they can have it but again as mentioned all comes down where your brought up.
The 2 you mention yep jewel spots but as much as I like and frequent Balmain is too damn busy for me and with just 2 main road outlets avoid weekends but the pubs/bars and eateries are damn great.
HH we call it the macadamia area and another jewel but way out of my budget a good pub down there.
Anywhere imo from North Sydney to Warrawee - Northern Beachs are sweet as and if off the main drags winwin very nice and bush environments.
I don't frequent west much at all unless on weekends due to sport commitments or invited for something if at all.
No peak driving my world for a long time and not those bottle necks mentioned.
IF some are ruled by the bucks thats what they have to sacrifice.
We just entertained a couple of the wife's relos from the UK the weekend, doing a harbour cruise with good vino/food and sunny day on that harbour has alot going for it, they were blown how nice we have it but I told them to show thumbs down going passed Kirribilli House if Albo was outside sucking up on a green haha.....