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Election 2019
Grunta
Packing a Huge Member
Protect australians wealth, we here, put all our money into homes, we’re not big on shares or other investments.
Most our foundation is in our property here and it simply cannot collapse, this is one way to protect it.
It doesn’t matter how it affects me personally shot term [MENTION=19687]littlegerry[/MENTION] bigger picture here is long term stability of our principle investment, that’s is of most importance to us all.
I agree. I think it will force prices up. Kind of defeats the purpose of making housing more affordable for young people.
I personally think that there has to be a correction at some point. Australia still has the biggest housing bubble in the world at the moment. A house isn’t a business. It can’t grow bigger or produce a product to sell so it’s value has to roughly stay in line with wages and that’s gotten out of wack at the moment.
Either way it’s not going to matter to my position. I sold my place 18 months ago for a price I wouldn’t dream of paying and now have been renting and love it.
Grunta
Packing a Huge Member
True dat.
the affordability and pricing lines run way off parallel, agree that we need to think of the younger generations and give them a chance to break into the market.
And I wouldn’t really call our housing market a bubble, seems like it, but it’s Australia’s biggest investment and ha has to be protected against collapse.
Nothing wrong with cashing in on high, as long as you pick a bargain at low and pour your hard earned back into it before the missus slowly but surely disperses of it.
Ive done it twice before.
we’ve got the banking commission inquest and revision of the serviceability matrix to thank for the dip in the market.
An investment home is a business, think about this, only here we can walk into a bank and say “I need a million bux to buy an investment which returns negatively so I’ll technically be losing money, which means I’ll be asking for the majority of the tax I paid to be returned”
imagine asking for that for any other business venture, they’d put you in the nut house.
i love this country!
I don’t see myself buying a house in the future unless things change dramatically. I see buying a house as a terrible investment. You are buying a depreciating asset (the house) that requires a lot of upkeep. And long term, the land price grows at roughly inflation. If it’s an investment property you get rental returns but they have been terrible of late. The tax treatment of houses and the banks have caused a bit of boom in the last 30 years but I don’t see it lasting, it hasn’t been able to before.
The money from the sale went into other investments so its not dispersing or just sitting in the bank doing bugger all.
Sure over the last 30 years Aussie property has done well. It has been a good investment, doesn’t mean it will continue to be. Especially when you see how much of an anomaly the last 30 years of he Aussie housing market are.
You are right. You can get a bank loan for a house to lose money on that investment. The banks have been betting on endless capital growth, similar to the US situation in 2008. We know how that went down.
littlegerry
Banned
None of what bazza says applies to my situation and i totally disagree. Theres a housing shortage and a population boom in NZ,buying a house and renting it out is easy money.
Makes you wonder if baz is suffering from delayed onset post concussion syndrome from getting kicked in the head by a cow,on the one hand he said he made a nice profit from selling his house,but on the other hes saying buying a house is a terrible investment????
Makes you wonder if baz is suffering from delayed onset post concussion syndrome from getting kicked in the head by a cow,on the one hand he said he made a nice profit from selling his house,but on the other hes saying buying a house is a terrible investment????
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littlegerry
Banned
Baz one thing i noticed about powerlifting champs is that they are all smart people,perhaps think a bit longer before posting buddy.Perhaps you could clear your head with some "400 kg" unracks..
Honestly astounded that the propaganda wing of the Qatari meddling in our electoral affairs did not get a mention during the election period.
The fucking Qataris of all people, the most racist, corrupt country on the planet (just about) and no one bats a fucking eye when they drop a big hidden camera expose on the eve of an election.
Notice how I never mentioned that I was referring to your situation. I was talking about my situation.
Im not talking about your situation remember. But buying an investment property for me.
Rental yields are less than 4% in most areas which is terrible.
You have upkeep costs at 1% or so annually.
Sure you can depreciate to benefit your tax but it bites you eventually with capital gains when you sell.
If you borrow you are paying interest.
And the big cost of buying a house is the opportunity cost. What ever deposit you put down is money that is now locked into a house and not able to be invested in other investments.
So in the current environment buying a house the gain is all about the speculation on capital growth and currently with housing values way out of line with long term values that’s a pretty risky speciation. To me that makes it a terrible investment for my situation.
Also I brought my house over a decade ago. It did make some money but way less that I could have with other less risky investments. And I also believe that a house is a worse investment now than a decade ago.
Remember, this is my situation Gerry.
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Grunta
Packing a Huge Member
@Bazza20
I’ve built and rented out so naturally my return rate appears a bit higher.
I also design the with a master bedroom c/w en-suite downstairs and another one with also a lounge upstairs, this way I can stick 17 Indian families in there at a good return rate.
But anyway, let’s say I sold you one at $1.1M and you got 4% return on it.
Plus depreciation and all maintenance is tax deductible.
Add that up and you get a nice chunk of change out of it and up 20% YOY capital growth on top.
its a winner to me Baz.
I’ve built and rented out so naturally my return rate appears a bit higher.
I also design the with a master bedroom c/w en-suite downstairs and another one with also a lounge upstairs, this way I can stick 17 Indian families in there at a good return rate.
But anyway, let’s say I sold you one at $1.1M and you got 4% return on it.
Plus depreciation and all maintenance is tax deductible.
Add that up and you get a nice chunk of change out of it and up 20% YOY capital growth on top.
its a winner to me Baz.
littlegerry
Banned
I made a lot of money(for me),and its what im going to continue doing,rents are sky high in comparison to mortgages in this town and you have 50 people lining up to rent your house,its a winner.
Im interested, what are rents and property prices.
Good stuff, I have no doubt you are making your property investment work for you. Each to their own as there is more that one way to invest. Property just doesn’t do it for me and 4% rental returns and counting on further capital growth doesn’t do it for me.
littlegerry
Banned
im a lowballer,remember im a manual labourer who saves his money so it would be pitiful compared to someone living in sydney,its a small town with high demand for rentals,NZ is going thru a housing crises. Dont want to give what i make away on a national website srry.Its much higher than this 4% u guys are throwing around. We rented out our last house with a good tenant and sold when we came back from Aussie we basically doubled our money on what we paid.
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littlegerry
Banned
Im likely to be able to live off rent money in the future. Both me and my mrs work so we are saving hard to keep acquiring. However judging from where u guys live and the type of work you do,im probably the poorest on this forum amongst the regulars i would think. I own 2 cars but drive around in a ford laser ffs,that gives you an indication im a very economical dude.
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I wasn’t asking how much you are making, I don’t care, just interested in rental yields in NZ. From a quick google it does look like overall NZ rental yields are a bit better in NZ than Oz but not much better.
If I wanted to get back into property would buy into a REIT vs buying actual property. You can get your 4% return. Some capital growth. Zero interest fees. No landlord duties. Less stress overall. You have the benefit of diversification.
Aussies do have this love for property. Some have made money but plenty haven’t.
Grunta
Packing a Huge Member
Longer term game, moving property quickly doesn’t yield massive profits, can cost you if anything.
Brother is a builder, he rides the capital wagon for a bit before he flogs em off.
I agree, with the buying and selling costs it makes it a better long term investment.
So with 30 years of above average growth in property prices what happens when we have 10+ years of sideways movement or even losses. It’s happened elsewhere recently. Much of japanese property has gone down for about the last 30 years.
if I was a builder it would be different. I probably would be looking at buying houses, fixing them up and flogging them off.
