Any property gurus?

[Dash_XR]

It's a good time too buy but you gotta be careful with inner suburb apartments at the moment, that many high rises are getting approved there's every chance better cheaper apartments could be built just around the corner dropping the value on yours straight away.

The buy an old house on large block was the way too go a few years ago until all the mum/dad investors caught on and now it's not as easy as it use to be. Even out in Lilydale.

For a first one think of something that is good value and appeals to the widest range of buyers/ tenants if/when you want to sell/lease. Something you can add value too as well.

Also you dropping what you think might be a 20% deposit now might not be enough to clear mortgage insurance once you add all the other costs, stamp duty, conveyancer, building inspector etc so alway have some backup. Definitely worth doing though if you can.

[GT0132]

Originally Posted by Stefan

If I buy an investment property I can no longer claim interest? When did that happen? I better call my accountant. I'm going to have to pay back a huge amount of tax.

The OP in option 2 was looking borrowing to buy another property, move his mum into that and rent out the existing place.

Unless he's comtemplating charging his mum market rent and it's all at arms length then he'd get no deduction for the interest on the new borrowings. .

He'd get a deduction on the interest on the borrowings of the existing property if he rents it out, but the OP doesn't say if there are any borrowings on that place. That's all assuming, of course, that his name is on the title deed exclusively and not his mother

On the face of it, all other things being equal, he's better off taxwise to rent out the place with the most borrowings.

[GT0132]

Originally Posted by stevz

The past is not a guarantee for the future.
.

and what happens overseas is not guaranteed to happen here.

I find it strange that, in general, despite property having shown pretty good returns in many parts of urban Australia in modern times there are some that warn against buying it. We're in a boom right now and in certain parts of Sydney if you had taken advice not to buy back in 2012 and 2013, and instead sat on the fence waiting and seeing, you'd now have to cough up, or borrow, another $100k (or more) to buy the same property. I know what advice I should have taken!

[buggerlugs]

Originally Posted by Polyal

While I disagree with everything Stevz says in general and dont go along with his bantering Im actually sheepish about entering the market even though I am over paying rent.

I know I could wait and wait but things are in an odd state at the moment, im keen to wait until late 2015/2016. Even then we wont see the impact of the auto industry loss until '17/18 I guess. Thats alot of years in rent where for the same cash I could be paying something off in the 'burbs. :(

Mate, if everyone believed in what Stevz was on about, we all may as well go out the back shed and top ourselves. I bought one of our houses in an up and coming area called Mackay 8 years ago. Paid $180,000 for a nice 4 bedroom brick veneer 1.5ks from the beach. Paid the house off in 3 years, had and are still having great rental returns. Have other houses doing very good as well....... It was drummed into me in the early days that rent was dead money................

[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.

[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

[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

[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.

[jimmyxr6t04]

Stevz - Even if my investment property didn't go up a cent in 20 years, the fact would remain that someone else paid it off for me, whilst i got a tax deduction... Capital growth would be a bonus!

[jimmyxr6t04]

Some links Re: Stamp Duty in the ACT

http://somersoft.com/forums/showthread.php?t=53879


For the link below; you have to download the PDF, and page 9 has the list of deductions

http://www.ato.gov.au/Print-publicat...rties-2010-11/

[Franco Cozzo]

I've got no debt at the moment, except for regos and insurances coming out of my *** because I've got 4 cars.

What is it like having a property/house with no debt? Is it serviceable with just a part time/casual job?

I'm looking at some properties about 250km out of Melbourne, prices are cheap for residential land, I don't mind rural living. I'd rather be able to get a property and build a house on it, without having to take out a loan, it would be possible for me to do in a few years if I try.

[GT0132]

Originally Posted by jimmyxr6t04

Some links Re: Stamp Duty in the ACT

http://somersoft.com/forums/showthread.php?t=53879


For the link below; you have to download the PDF, and page 9 has the list of deductions

http://www.ato.gov.au/Print-publicat...rties-2010-11/

Thanks Jimmy, that's interesting. Never knew that
CHeers

[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...............

[XB GS 351 Coupe]

Originally Posted by Big Damo

What is it like having a property/house with no debt?

It's a LOT better that paying $300-600 per week into someone else's mortgage for them just to be living in their house, while the property market gets further and further out of your reach.

[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

[GASWAGON]

Lets wait and see what happens in Jan/Feb with the U.S debt ceiling debacle.....They're nearly at 18Trillion in debt + Interest as we speak.........If Obama doesn't get his way the U.S will default and that will mean a global GFC 2....Mind you I think he will get his way as always.......Also Janet Allen is taking place of Ben Bernanke as chairman of "The Federal Reserve Bank'....
Apparently she wants to taper all the QE they have been doing over the last five years......U.S job numbers are still bleak after five years of 0.00 rates....

No one knows except the people running the show!

[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.

[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 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?

[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.

[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!

[stevz]

Originally Posted by EF_6

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

I was actually referring to a US economist I was reading about, can't think of his name....
IIRC he predicted the gfc about 2-3 years before it happened and everybody laughed at him and thought he was a nutcase, but those people were quickly silenced come 2008.

[Auslandau]

Originally Posted by stevz

I was actually referring to a US economist I was reading about, can't think of his name....
IIRC he predicted the gfc about 2-3 years before it happened and everybody laughed at him and thought he was a nutcase, but those people were quickly silenced come 2008.

Well he showed them!

There would be sooooo many people today predicting the end of the world and soooooo many people saying the opposite. Of course someone is going to be right, someone is going to be wrong. Say it long enough and it will happen .... not because anyone talks themselves into it, but because of the ups and downs that will occur.

[GASWAGON]

Originally Posted by stevz

I was actually referring to a US economist I was reading about, can't think of his name....
IIRC he predicted the gfc about 2-3 years before it happened and everybody laughed at him and thought he was a nutcase, but those people were quickly silenced come 2008.

You are probably talking about 'Peter Schiff' Stevz... Without goin into this subject too much the only other country that has been in as much debt as the U.S is Japan...20 TRILLION dollars....that's Trillion not Billion!!!!!!!!.....That's like 12 zero's on the end.....

Presently what is happening is 'Currency wars' where countries all over the world are printing fresh money as much as possible to devalue ther own currency to make it more competitive against other currencies...... These wars can go for 10-15yrs......They say the USD will go to about 30c or possibly even collapse..... eventually!

Our main enemy is China ie Holden Commadore 2017....... China may possibly be the new SuperPower in a few years time and the U.S will be ...TOAST!!!!!!