Forum Replies Created
- Fully wrote:Oh my goal is simple to own a decent house outright in Perth in 12 years and just live out my life, I'm not concerned about making millions.
Considering this, I would recommend looking for the house you want to live in, buy it and pay down the loan as fast as you can. It's the most sure way of achieving your goal.
Hey Mcgrandles.
I hope you have a steady recovery in your health. I believe http://www.realestate.com.au is the most popular. http://www.domain.com.au is also popular.
Best of luck
What kind of zoning will make it a second hub of Brisbane?
What is the potential for capital gains? How long are they tied up with the defence force?
Do you trust the hotel to direct visitors to your room? If the hotel isn't 100% occupied, you could find yourself buying an empty room.
Fixed rates have risen which is an important event. It's a signal of where variable rates are going.
A dishonest salesman. Not atypical.
BIS Shrapnel were saying a year ago that house prices were about to jump by 40%. I don't trust them at all. If they're right about increased construction of new homes, then this will be bad for house prices because you need a supply shortage for prices to go up.
I don't think prices will go to where they were 10-15 years ago any time soon, but I think they will probably fall a bit or at least stay flat for quite a while. The fact is that property prices are ultimately restricted by the incomes that people earn. Otherwise home loans become unserviceable. House prices have outpaced the increases in incomes. Therefore prices will have to eventually come back to their mean multiple of the average income. Prices are currently about 7 times the average income. The long term average is about 4 times income. Therefore the worst case scenario is a 40% loss. However house prices move slowly and the supply problem will only be fixed slowly, so this won't happen overnight. As an example, in Japan house prices boomed for 10 years and have since fallen every year for 15 years. Therefore property investors had plenty of time to get out. It's only if they waited 15 years to sell that they would have made the biggest loss.
I would pay down your debt as much as possible then wait and see what property prices do over the next year or two.
I think when you combine a halving of the FHOG, rising interest rates, higher unemployement and tighter lending standards house prices will struggle. The housing market moves quite slowly so I'm interested to see where house prices will be in a year to a year and a half.
May as well pay your tax bill up front. There's no point in fooling yourself how much cash you have available.
The most advantagious approach is usually to have the property in your own name. Trusts and companies are mostly useful for asset protection reasons. eg. If you were an accountant or lawyer who might be sued for your personal assets.
You are best off speaking to a good accountant and tell them as much about your circumstances as possible. The law is very complex and any small aspect of your situation may change the answer about which is the best strategy.
I would prepare a forecast of how much the land would have cost you at the end of 5 years if you buy now. This forecast would include interest and rates paid, etc. And compare it to what you think the land value will be in 5 years time. If the land value would be higher in 5 years time you can't go wrong. Even if you decide not to live there you can just sell the land for a profit. But of course you should consider all the possible factors that will affect the land's value.
I think building has to commence in 24 weeks and be completed in 18 months.
Some areas have had a correction, but on average Australia is still waiting for it. Some places are even booming at the moment because of low interest rates and the FHOG. This is very dangerous as low interest rates and the boosted FHOG will not last.
The only way you will get a tax benefit from this situation is if the trust is earning other income which it can deduct the interest from. The trust will then receive the tax benefit.
The property bubble in Australia needs to be popped asap. People are spending to much money on houses and not enough consuming and investing in businesses. We will need serious inflation in earnings and consumer products to get back to a normal state of affairs. It's making me consider moving overseas so I can earn in a different currency,
A capital loss can be carried forward forever under the current law.
But yes, the outgoings on an asset that doesn't generate income become part of the "cost base" of the asset. Therefore there is no negative gearing allowed.
diggerdigzit wrote:Now Ajay, I am not saying your wrong ( well I kinda am, but thats just my personal opinion) and these guys are right, it's just that everyone has an opinion, whether it be right or wrong, endless arguments can ensue. When it comes to two things, Economics and Real Estate, there will always be the black and white and the huge variances of grey in between. It seems to me no one really knows for sure until after the fact. Personally, from what I see, and what my former colleagues tell me, things are looking up, but I then have to admit, what I see is only a small part of the world.I'm talking about where property prices are heading in the future, not what they've done in the past.
