there is an important concept being missed here – return on capital. it’s like saying the same about cash deposited at the bank… it will be worth the same in 10 years but it hasn’t gone down in real value as you have had the return on capital to account for. There are a heap of other factors to consider of course – risk, gearing, tax…[Read more]

Of course if the asset returns 5.3% in rent during that period, the asset has neither appreciated nor depreciated in that time. so growth of only 1% on a median priced home at say $280,000 is real growth of $2,800 in that case.

http://www.megainvestments.com.au

John Carroll

oh here we are:

http://www.bhpbilliton.com/bb/investorsAndMedia/newsAtBhpBillitonDetail.jsp?id=News/2005/News@BHPBilliton070605.html&title=BHP+Billiton+Locates+Global+Nickel+Base+In+Perth

not quite a shift of the whole operation, but the nickel division is still good!

http://www.megainvestments.com.au

John Carroll

OMG! where did you hear that?

http://www.megainvestments.com.au

John Carroll

hey dmichie we have our disagreements at times but I must say good on you for your export efforts. I have ambitions to export one day and effectively give back to this great country. I just disagree that thumping the property industry is the way to achieve higher exports.

http://www.megainvestments.com.au

John Carroll

“But it’s hard to see much of an improvement in net exports – and thus a return to faster growth – until (for whatever reason, domestic or external) the dollar falls and makes us more competitive.”

Oh dear – another subscriber to the old theory that if you can’t produce goods that people want, just deflate the price until someone will eventually…[Read more]

9-5 grind? lucky her! most agents are more the 6 to 11, 7 days a week grind.

http://www.megainvestments.com.au

John Carroll

I don’t see this paradigm shift…. the ratio of ownership to renting i.e. about 50% of the cost has been static for decades. The arguments have been debated long and hard and in summary it has come down to (a) emotion, and (b) depends what the future holds for capital growth, which no one can be certain about. At the end of the day, if you can…[Read more]

you must be joking F – even you must accept that the huge subsidisation of property by the taxation system is contributing to lower rents

http://www.megainvestments.com.au

John Carroll

Dmichie we have reached concensus before on how to fix this – taxation reform. but it aint gonna happen.so as I said before, you may very well get your weak dollar and I hope you benefit from it.

as for the pile of debt – don’t worry about. we are all big boys and girls and can look after ourselves.

http://www.megainvestments.com.au

John Carroll

Originally posted by foundation:
Nope, they were looking at it, but it’s right off the burner now!
Link Here
God do we ever live in the lucky country!? Here we are with a government who hand out more in tax deductions on investment properties every year than they take in tax on rental income!
Amazing.
This is the best. What a great idea!

Cheers,…[Read more]

Originally posted by dmichie:
but I do like the taxable aspects of investing, and would probably still chuck the bucks into IP’s instead of a ppor.
It almost makes you think there’s something wrong with a tax system that encourages property investment but not home ownership.

As John Garnaut put it today:
Most economists agree that the current…[Read more]

“Check out south of Perth for example. In Mandurah I can rent a huge place next to the ocean fro $300/week but to buy it I’d be forking out up to twice that. That can’t be sustained for long. people will stop buying and rent and price will move together again.”

as far back as I can remember the cost of renting has been about half that of…[Read more]

F – can you check that link please?

tipped to end? must have blinked and missed it. Once again they have interchanged Sydney and the entirety of Australia as one market.

http://www.megainvestments.com.au

John Carroll

yes you will have to pay it back. Just to comment on a few points of Truth 2:

Truth #2: The dangers of depreciation

Buying a property based on depreciation benefits is dangerous and deceptive.

A little emotive….

Depreciation is an accounting term used to describe the wear and tear of an asset that occurs over time. In practical terms,…[Read more]

sorry Redwing I don’t really know. Our homes are at the median level and wouldn’t even cost $180k to build! It wouldn’t surprise me if at the top end of the market they were doing that, but to owner build presents it’s own problems. Firstly you don’t have a fixed price building contract, so you will need the $500k or so in cash as I couldn’t find…[Read more]

“and the latest BIS forecast is 9% in late ’06”

I suspect that they are realising they were well off the mark and are slowly bringing it back.

http://www.megainvestments.com.au

John Carroll

BIS Shrapnel and Marvin the Depressed Robot have a disturbing likeness.

Good to see that even in the depths of their depression they did comment that once their projected mayhem of the next year or so has cleared the residential property market “would be strong coming into the next decade, Dr Gelber said.”

F and David – are you backing the 10%…[Read more]

agree with the logic Greg, but 145000kms is some serious mileage! I would be concerned about how many more km’s I would get for my $16,500.

http://www.megainvestments.com.au

John Carroll

“Property PE’s compared to the sharemarket are crazyly high.”

what makes you say that? I would like to buy some shares but at their current prices they are just too expensive. I would expect the inevitable share market correction to prop up real estate values

http://www.megainvestments.com.au

John Carroll