Forum Replies Created
The title of your thread is about Capital Gains Tax but judging by your post you are asking about negative gearing tax offset for holding a property. If you are enquiring about how to maximise the negative gearing benefit against your high income then the simple answer is to borrow the maximum possible for your IP, Say 105% and don’t put any of your own money in even if you have it available to put in.
That’s my point about weekend investors. Your dad has a holiday home down there and I am sure that he gets his personal ROI from it. But if you are looking at rental demand and yield etc, this is something different from what your dad may be considering. When you look at these markets in that light it may not be an investment that provides continual income that allows you to hold it long term.
As I said its a great area down there, but given the recent influx of construction workers and their families that the rental market has absorbed, this is a market that has enjoyed the exaggerated benefit of the massive influx of construction workers rental allowances. The fact that they are now withdrawing should say that one should wait to see what impact that massive withdrawal has on the relatively small local economy and the rental market in particular. I was involved with all of the additional workers there and ended up staying in the Silver Water resort which was fantastic but in the long term worked out to be a health hazard due to the exquisite tucker, red wine and views.
Latrobe Valley has coal and lots of it. Most of Melbourne’s power generation is done there and despite what any Greenie tells you, that will not stop. The brown coal that they have massive amounts of, is very much in the sights of India and the current Sate Govt has indicated a willingness to sell shed loads of this thermal coal to India. Morwell, Taralgon and to a lesser extent Moe should do well from this natural resource under their back yards.
JT7 wrote:bardon wrote:I have just realised that some of those new projects that got the green light may be adversely affected by the Rio pull out. We may well be over the top of the boom now, given the high production costs, trade union militancy, red/green/black tape and government emailers.Indeed, this may well affect operations right down the chain into the Galilee Basin, the rail infrastructure and of course the port. This has the potential to strip billions of dollars off Queenslanders!
Now we know why Clive Palmer’s hair turned white overnight.
Given that Wandaon coal was going to be loaded out of Gladstone, maybe this pull out by Rio up north is a shot in the arm for this project in getting a leg up. Maybe.
JT7 wrote:bardon wrote:JT7 wrote:It’ll be interesting to see whether the plans of Aldani are adversely affected by this latest setback?What are these plans I am not aware of them but interested in finding out?
As far as I’m aware Aldani purchased a 99 year lease on Port Abbot. Aldani has massive interests in projects in the Galilee Basin and the rail infrastructure from the Galilee Basin back to the Port.
A house of cards……!?!?
The consequence could be huge, but I don’t see a crash as production levels are now very high and if we just stick to what we are now doing and stop new projects then prices should in theory climb or at least stay level and definitely not fall of a cliff. Lets face it the big guys are playing their cards very well at the moment. With the current level of committed projects they were always going to struggle to get the staff to deliver the new projects and keep the lid on wage rises. This way they have a better handle on current risk levels and an increased level of control on wage levels and delivery of existing projects and a killer punch to the current govt and trade unions. Poker anyone ?
It was only a couple of months ago that I was visiting a site in the Surat Basin and stopped off for a coffee and a Riblet in Wandoan. A quick look in the RE office window , like you do, had me salivating at the low house prices and the high rents. Mrs Bardon would have killed me if I got another one, but maybe with hindsight it was best that I didn’t.
JT7 wrote:It’ll be interesting to see whether the plans of Aldani are adversely affected by this latest setback?What are these plans I am not aware of them but interested in finding out?
JT7 wrote:However, we (collective Australia) allowed this to happen!The ‘people’ created this scandalous government and allowed the Greens power in the senate. What did we expect to happen in such a toxic environment?
We have no one to blame but ourselves!
Those are the facts!
I see the problem as being one of the party system. No reasonable person would vote for someone that they thought would screw things up. We have this system whereby we elect a member to represent us, yet that member represents his party and not the citizen. We have been led to believe that the political system could not survive without parties, which if you think about is a nonsense. I have the same issue with both sides of politics. There are no other organisational hierarchies that operate along party lines.If you take the US they have perfected this mindset and whittled it down to a two party system.
As for the Greens now that Peak Oil is finished, and Global Warming has been rescheduled then they also have had their moment in the sun.
I have just realised that some of those new projects that got the green light may be adversely affected by the Rio pull out. We may well be over the top of the boom now, given the high production costs, trade union militancy, red/green/black tape and government emailers.
I don’t think there is anything wrong with the states protecting their patch. Let’s face it once the funds are collected by the thieves in Canberra no one gets to see them again.
Mark my words, the writing is on the wall for the current dark forces in political power now. I see another scandal emerging today with respect to the Speaker. So we have hostile state govts, Craig Thomson, Carbon Dioxide Tax, struggling business owners, NBN gravy train, disenfranchised voters, Fair Work Australia which is anything but, Union gouging, a peaked commodity cycle and a very unpopular government that is completely out of touch with economic reality and void of credibility.
The good thing about this Rio pull-out is that the issue is now front and central and everyone can see what is going wrong with political system. I hope this forces some hands now. The QLD state govt is of to a cracking pace with three new projects announced that had been sitting on the Coordinator Generals desk for years. One of them is a dam, can anybody remember one of them being built !!!!!!!!!!!
They also said that the recent hullabalooh raised by UNESCO regarding shipping volumes in the Barrier Reef was a stunt. They have made it clear that the UN whatever has absolutely no jurisdiction over QLD projects and their opinions will not be sought or considered with respect to projects. Jeff Seeny went as far to say if he copped any more flack on Gladstone harbour he would carve it out of GBR Marine Park as it wasn’t part of it anyway.
Yes that is in the range 10% of $620,000 is $62,000 so the maximum price range if 620k is the low end, is 620-682k. The 10% rule is being followed and I believe that all agents are toeing the line on this.
I am selling in the Ashgrove market and have been pleasantly surprised by the rate of sales and the number of lookers turning up at openings. Seems like family homes are moving again although the demand may be artificially strong due to the lack of stock. Could be that once the would be sellers see some decent sales they will also list, pushing up supply and then we are back to 2011. Hope not, and I hope that there aren’t that many new listings coming on in the short term that I will have to compete against.
What a resilient thread still alive and kicking. I guess like a broken clock the thread title will be right some time.
I think the only crash that we had was in the commercial sector and that appears to be in recovery right now.
I haven’t caught up on all of the previous posts on what everybody is thinking about a crash. I guess some are still predicting one sometime in the future though?
The one thing I do know is that NBN is a very uncertain thing as the next mob that will run government do not agree with it.
I think it is a dead duck and a govt gravy train with all the usual parasites feeding of it.
The reality is that generally speaking there are three ways to build wealth. Property, Shares and Business Building,Owning,Selling etc.
That’s why if you look at any of the published rich lists from any source most of them will have made it there by participating in one or some of the above.
In Victoria the price range can only vary by 10%.
I think most investors that own property will alwys welcome and encourage any new investors into the market, even if they don’t think it is a good idea.
There is an interesting article on mining towns and the recent Dysart situation on the link below. According to that article it aint so bad after all.
Mine closure expected to bring down rents and prices in Dysart, Queensland: Agents
I have a house in Melbourne that I was considering selling recently. I wasn’t expecting to sell it and due to some external factors I needed to sell something and that was the largest liability so I decided to sell it. I put a tenant in, in Dec 11 on a 12 month lease (as the property was then a long term hold) and gave an agent instructions to sell In February 12. The long and the short of it is that the tenant has the legal right to stay in the house for the remainder of the lease regardless or what I or a buyer wanted to do. My tenant was very resistant to a sale and in the end I decided not to sell and am now selling another one instead.
As a buyer then the only thing I could suggest is that you and the seller work out a sweetener with the tenant whereby they are compensated for moving out early. That will cost you more but it is the only way that I know of that you could get them out quicker.
I have worked and travelled around South Gippsland quite frequently although I have never invested there. I know the market moved a bit after the recent Melbourne peak and understand that it has came back now. Meaning it might be a good time to buy. I would stay well clear of Wonthaggi, Inverloch, Phillip Island areas as prices and rents have been massively inflated due to the ingress of construction workers for the Desal plant. They will all be leaving within the next 12 months.
The area has a good feel to it and there are many beautiful little towns throughout and can be a bit of a weekender buyer from Melbourne market. Latrobe Valley may well be a safer investment area due to the population size, local industry, transport links with Melbourne and good affordability.
JT7 wrote:My suggestion is that you complete your own due diligence otherwise you may well miss out on an opportunity because of heeding the misinformed advice given by those who profess to know a market but infact know very little or want to steer towards a product they may have a vested interest in. kExactly I didn’t go ahead with a small 6 unit commercial deal in Emerald in 03. Loan broker talked me out of it, would have made a motza if I had went ahead.
