Forum Replies Created
actually I was getting some careers advice from SIA yesterday, was told the DFA (advising) I have is better than the old DFP (planning), DFA has 8 modules, while DFP has 4, which means, anyone with DFP only knows 50% of what they should……hmmm….they prefer 50% knowledge and some experience to 100% knowledge with no experience. strange
Rod
I think what they really mean by experience is
“can you sell our products even though they are not the ideal product for the client, and pretend you know what you are doing?”
1. your Pulsar is $20k new, so a 2 year old one would be worth $14k max (20% drop once driven off the lot)
2. why have 2 cars? both are liabilities, not assets. assets produce income. liabilities cost money ie rego, fuel, tyres, oil etc. sell 2nd car and pay off car loan.
3. no second hand computer is worth $1500, and I wouldnt count it as an asset because you cant do without it.
4. pay off the car loan REAL fast.
5. pay off the 8k loan after that, asap.
6. $100 a month on a phone bill? reduce that. change your habit or find a cheaper plan.
7. dont borrow any other money for anything! no credit cards or store cards either.there are around 2000 different home loan options, thats what mortgage brokers are for!
1. dont sell and have it revalued, then use the equity
2. make it your PPoR for at least a month
3. if partner has lower income do it in their namecut up your credit cards, sell the car, in fact sell off any luxuries you recently bought. buy a cheap car, cut up your credit cards (you obviously have a spending problem) and look for a second job.
you could refinance, but thats not going to save you when interest rates start climbing. try to eliminate the debt altogether first. you need to take serious action NOW. accept you are in the poo, and take some short term lifestyle cuts until you clear some of this debt. not sure where you live but might be good idea to sell house and rent if you are in sydney or melbourne.this might come out as a mess, worth a shot. it is a table comparing negative geared (capital growth) vs positive geared (yield). hmm, just previewed it, yuk. ok, end result is that on a $100k investment after 10 yrs, the yield based investment comes out $75k in front all things considered.
Condition Positive Geared Negative Geared
Income = $35,000 $35,000 $35,000
Rental income $10,000 $6,500
Interest expense -$7,500 -$7,500
Depreciation deductions -$0 -$4,000
Assessable income $37,250 $30,000
Tax payable $7,555 $5,380
Net Proceeds $29,695 $24,620
Difference $5,075
Property Sale after 10 years @ 10% capital growth $260,000 $260,000
Equity $160,000 $160,000
Savings $50,750 $0
Return on savings over 10 years $15,492
Net worth $226,179 $160,000
Capital gains tax liability on sale $260,000 – $180,000= $160,000 x 0.5
= $80,000 $260,000 – ($100,000 – 10 x $4,000)
= $200,000 x 0.5
= $100,000
Capital gains tax to pay $34,932 $44,332
New net worth $191,247 $115,668
Difference $75,579As can be seen, the positive geared scenario is better at all stages. In fact, even if the positive geared property grows in value to only $175,000 over 10 years, (5.75% annual growth) you still come out in front. Also, it’s not necessary to fund a shortfall over the 10-year period, allowing for a less stressful life and flexibility in career.
is there a link?
would like to view the table. i made my own and got a different result.
my predictions:
Sydney -30% by 2005
Melbourne – same
Brisbane – up 20% by 2005definately is a bubble in Sydney & Melbourne. large drops have happened before and conditions are right for a repeat.
davo
“The average rent in Brisbane for example is about $250pw in the average 10km radius suburbs.”
Actually its funny, we took a 12 month lease on our rented house 8 months ago, for $200, which we thought was a bargain. A few months ago we thought about moving and asked the agent what it would cost to end our lease early. It was going to cost quite a bit, so we stayed. Last week the agent called and said we could leave early, with no penalty, because the owner now wanted $250 in line with the market. nah, we will stay thanks! lol. Shows us just how much Brisbane has boomed recently.
get jamie & the gang to renovate it, then have a televised auction, could go for a cool mill I reckon!
urgh
thanks for putting the stupid song back in my head
I looked at the crowd on tv and the crazy bidding at auction and realised: “this is the turning point of the mania”
3/4 of a mill for a 2 bed flat…..mahahaha. hilarious!
All these budding renovators educated by the 12 or so tv reno shows, all out there overbidding on handyman delights. look at those sheep go! is bunnings a listed company? LOL (actually it is, WES owns it)
seriously, there is an oversupply of renovated houses hitting the market, while crappy houses are overpriced. the law of arbitrage says that the gap in prices will be exploited until the gap closes, but geez i reckon its now cheaper to buy a renovated house than it is to buy a crapper and do it up, i mean theres lost rent, your labour, materials, tradesmen etc……ZIG WHEN THE LEMMINGS ZAG
ahhh now it all makes sense!
Steve is a closet farmer, that’s why he always buys in rural areas!
LOL
hey quasi
how bout a cashflow game as a seperate event?
we will be in for that, were gonna buy the game and choked on the $350 price tag.
westan
What am I wrong about?
I said house prices fell 30%, I just gave 2 reliable sources which back it up. Now both say 25% instead of 30%, but lets not split hairs. I havent been able to find the article I based my comments on, but surely you can accept that house prices in Sydney and Melbourne rise and fall roughly in sync, and since it has been proven that Sydney prices fell 25%, why cant you accept that Melbourne did the same. Irrelevant anyway, the point is prices can fall large amounts, regardless of the city. Besides, you havent proved it didnt happen, you have given some yearly values which do not show changes through the year.
It seems you are trying to tell people property prices cannot fall sharply, which of course they can, have, and will again. This is my point, prices in Sydney and Melbourne are likely to fall 30% in the coming years (backed up by the reports I posted).Its not about which of us is right about figures, its about warning people of the danger ahead.
“Country towns are only where dead beats rent.Unmarried mothers, drugies, unemployed who just won’t work.If they really wanted a job they would be in the cities.”
“I have four properties in Sydney. On the Northen Beaches.
Harbord,Dee Why & North Curl Curl.Plus one in the north side suburb of Chatswood. Total valuation
of just under two million dollars.”“I also own a taxi.This I run from home. I have drivers for most shifts. I drive on Saturday and Sunday day shifts.
I am a WOG!! Worker of the Government.”“Not mine, I DON’T PAY TAXES!!!”
Im confused, who is the deadbeat here? I would rather have mothers abusing the welfare system than have greasy slimeball snobs like you with millions of dollars in property ripping off the taxpayers. You have to be pretty stupid to insult the majority of 18,000,000 people, and admit to a crime publicly.
“which we have negatively geared for 5 years, and are considering selling it (Loan of $205000 – property conservatively valued at $320000.”
Now im just learning this stuff but need practice so here goes:
Loan – $205,000
Value – $320,000
Equity – $115,000
Original cost – $240,000 (est)
1. 5 years depreciation claimed @ 2.5% ? = $6k x 5 = $30k
2. written down value 240k – 30k = $210,000
3. capital gain = $320k – $210k = $110k
4. adjust for inflation using indexed cost base
eg 110k / 1997 figure x 2003 figure = 70k
5. liability on 50% of this amount eg 35k
6. at highest tax rate 47% = $16,450Thats just a wild guess cos you didnt give all the nessesary details.
thanks Michael,
thats VERY different to what Jan Somers was saying in her book, which didnt seem quite right. She was saying that if you are single, and get in a boarder or 2, then you can claim 1/2 or 2/3 of everything. She also neglected the land tax issue.
“But the actual figures from the Victorian Valuer General doesn’t show a 30% drop you have been misinformed or maybe you had your head stuck in that sand.”
Your figures only show one value per year. Would you look at a stock chart with one value per year and guarantee the stock never had a 30% drop? it is entirely possible the 30% drop happened just after the numbers were done, and then climbed back up over the rest of the year.
well done on IGOO, but I dont trade specs, in fact i rarely trade asx stocks, I find european stocks have better volatility and trends.
“Interestingly, the median house price in Sydney dropped by 25% in 1989” (Business Review Weekly 12 July 2002
and this:
source: http://www.portfolio-planners.com.au/RTF/property-gosling.pdf
“And in a recent study UBS Warburg report that in Australia house prices fell by 25% in the two years to the end of 1990. The housing market again looks vulnerable to such a decline at present.
According to the Economist, house prices in Sydney are estimated to require a fall of around one third to get back to historical averages. Melbourne prices would need to decline by even more, and the rest of Australia in total is little different from Sydney.”
