Forum Replies Created
Love to oblige:
Year Sydney Melbourne AveWage
1974 31,800 25,500 6916
1975 34,300 28,700 8070
1976 36,800 32,900 9120
1977 39,200 37,000 10378
1978 43,200 37,600 11364
1979 50,700 38,000 12296
1980 68,850 39,500 13550
1981 78,900 44,000 14824
1982 79,425 46,750 16366
1983 81,425 52,500 18248
1984 85,900 65,000 19507
1985 88,350 75,200 20346
1986 98,325 82,000 22055
1987 120,025 89,500 24106
1988 141,000 109,000 25866
1989 170,850 132,000 27755
1990 194,000 131,000 29975
1991 182,000 127,000 31564
1992 183,300 125,000 32163
1993 188,000 126,000 32485
1994 192,375 130,000 34216
1995 196,750 129,000 35310
1996 211,125 131,000 36793
1997 233,250 142,000 35812
1998 248,750 155,000 37273
1999 272,500 175,000 38620
2000 287,000 191,000 39993
2001 322,500 225,000 42047
2002 387,500 258,000 44376
2003 454,250 276,000 45841Numbers are from the ABS. For REI figures, add 10% for sydney and 25% for Melbourne
Cheers, F.[cowboy2]Oh wait, here we go:
The Validity of Arguments Against Negative Gearing
14. Advocates of negative gearing claim that when it was abolished temporarily between 1985 – 1987 there was a substantial increase in rents.15. There is evidence that the increase of rents was limited to only two of the capital cities and furthermore was not caused by the abolition of negative gearing[3]. It has been reported that Saul Eslask, chief economist of the ANZ Bank, has said that does not the abolition of negative gearing during 1985 – 1987 did not lead to higher rents[4].
[3]Badcock and Browett 1993, The responsiveness of the private rental sector in Australia to changes in Commonwealth taxation policy. in Housing Studies Vol 6 No3, and David Hayward and Terry Burke,
[4]‘Justifying the Unjustifiable’ (1988) 7(
Australian Society 16From This Link
See, not that hard is it? Finding some evidence to back up a claim can really add weight to the validity of your posts. Unless, of course, it is a n unsubstatiated quote from API / REI* / PI etc.
Cheersm F[cowboy2]Originally posted by nkibel:The last time an Australian government abolished negative gearing was in the mid 1980s by then then worlds greatest treasurer. The rental market nearly fall apart.
I’ve heard this a number of times, yet the charts and graphs I have indicate this may be a myth. There was no spike in the cost of renting etc. Do you have a link or something to support this claim?
Cheers, F-Jeckyll[cowboy2]
Ignore the negheads Luke. I think those 111m^2 (including balcony) one bedroom ‘Reflections’ apartments are a steal at the best part of a million dollars.
My fancy is tickled. Care to share a bit more info? What could I expect to rake in per week in rent?
Golly I’m excited.
Thanks, F.[cowboy2]Hey dude, I’m just staying poz’ man… You look like you could use some candy… ([chill])…
Howz that? Better dude?+1 Karma, F.[cowboy2]
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. What a great idea!Cheers, F.[cowboy2]
Originally posted by Colin Gowan:Does anyone have actual figures for a proper comparison of incomes compared to house growth?How about David Rees Commsec Presentation for the graph of house prices to wages on page 13 (extends to -100 years). Don’t forget to add a bit more of a hike onto the end to account for 2002-2005.
This proves conclusively that buying a couple of IPs now and quiting work will be more profitable than continuing to work until 55/60 years.Glad to help,
F-H.[cowboy2]No sarcasm here Rob. No need for education either. Welcome to a whole new me.
Y’see I was a bit bored last night and my mind was full of happy thoughts after watching all the up-and-coming brilliant minds on Big Brother (the only TV show worth watching) so I downloaded and read a few ebooks. I am a changed person.
First I got stuck into a book by a girl called Kyo-Saki, something like “The Millionaire with a Crappy Car”. I was hooked. It was clear that my nice car was holding me back from my full wealth potential. It took me about 3 hours this morning with a bunch of keys, a piece of sandpaper and a large rubber mallet, but this obstacle to riches and happiness has been reduced to a beat-up old banger. Hooray, first step complete!
Once I’d devoured my first book I skimmed through Rob Gallon’s masterpiece “How to get Really Really (seriously filthy-stinking) Rich YESTERDAY”. The ‘A-HAH-HA!’ moment embraced me with all the warmth of the Titanic carressing a large lump of supercooled water. I have the power! If I think success, I will BE success! Here I’d been debating whether to sell my holiday house by the sea upon completion to cash in before some mythical house price crash removes a third of its worth or to hold onto it as a long term investment and lifestyle expense… What a joke!
If I think it will double in worth by 2012, I will be rewarded with all that and more! Gad, it’s that simple! I jumped onto PI.com and checked over my old posts. Yep, they’d all predicted falling house prices. I felt sick to my stomach, yet there was worse still to come. I looked at statistics on house price transactions and median sale prices. Sure enough, down, falling, slumping, stagnating. It hit me like a cricket ball to the testes – THIS IS MY SICK LEGACY! My negative words are the cause of all this deflation!
All those emails I’ve sent to FTBers and FTPIers who have come to this site seeking advice have been eating away the value of my future. Perhaps it’s too late to stop the rot, but I must try to turn this tanker around. From this point on I will dole out spittoonfuls of positive advice to the newbies. I will make my mark on the world by making sure house prices double every 5 years! That’s right, I’m going to be so positive I’ll break the old rules. Seven to Ten be gone! From this point, by my decree (backed up by positive thought and karma to burn) making money will be easy.Love & kittens, F.[cowboy2]
[biggrin][biggrin]
…took me a minute tho’!
[blink]I’m sure others have thought about this scenario tooYes, first home buyers for starters! The foundations into which the property ladder is bolted. Why on earth else would estate agency inventories be expanding so rapidly at a time when transactions (read buyer demand) are shrinking and first time buyers are shrinking as a proportion of transactions?
The good old ‘sell-to-renter’ is also in control of the strategy you have picked up on, except s/he has also got shot of the existing PPOR by flogging it off at an inflated price to some greater fool.
All this is just like wind to a house of cards,
F.[cowboy2]Here’s the other amazing thing, and why I am so completely positive about the future of our wonderful, happy country – According to Treasury figures, the total private net wealth in this country is equal to an average $250,000 per man, woman and child[1], of which 63% is real estate! That’s $157k per person! Even more amazing is that only 69% of Australians own their own home[2]. You do the math, that means the average Aussie home owner has $228,000 worth of real estate!
Now comes the exciting bit… because house prices double every 7-10 years, every one of these people will be able to retire on $50,000 equity withdrawal per year within the next decade! Are you excited yet? I know I am!!! Within 20 years their properties will be worth so much and be doubling so fast that more than 2/3rds of all Australians will be just pottering around in their early retirement spending the spoils of this ongoing infinite amazing real estate investment machine to the tune of hundreds of thousands of dollars per year! We’ll all be so rich that nobody will want to work and we’ll have to bring in immigrants to do all the cleaning up after us. The world truly will be our oyster!
Still, I only have 2 houses, and I still want to be rich and everything and leave my job before I turn 35, so just to be sure (in case prices don’t go up straight away), I want to buy just one more house. I don’t want to be greedy, just certain.Join me in my happy yellow-submarine-house. We’ll all clap together and be joyous.
Cheers, F.[cowboy2][2]ABS Link
My dearest Peace-love-sunshine,
How much do you need to live on? Let’s say $100,000 per year. If you buy $400,000 worth of house/s now, they might go up or down in value for a bit, but over the long-term (say 7-10 years) they will double in worth! Why? Because that’s the rule. Howz that for love?
You can then retire, drawing on some of your $400k profit for living expenses. Over the next 7-10 years you will automatically have another $800k of ‘equity’ added to your house value to draw down on. By this point you will be able to spend OVER $100k per year, as your house/s will also double in value to 3.2 million dollars.
Yay! Now how ’bout giving me a little preesh for setting you and your husband free from the shackes of the 9 to 5? Why don’t you go and tell everyone you know about this retirement strategy! You’ll get all the love you need, my good dear.
All the very best,Positive Light and Bunnykins, F.[cowboy2]
Oh dear! What on earth is happenning to me? I’m talking like a happyclappycamperitis victim! Help me! Dmichie – where are you?
Let me get this straight – you want to rent this house from the bank (admittedly with the option to buy it at current price at any time) for $35,000 per year and then rent it back to somebody else for less? I take it you are absolutely confident that this house will appreciate in value? How much capital gain do you require over what period of time to make this a profitable investment? Do you have a contingency plan if it doesn’t reach this goal?
Cheers, F.[cowboy2]Uh, good luck. I really mean that.
F.[cowboy2]Originally posted by Colin Gowan:A buyers market is when the majority are selling.
A sellers market is when the majority are buying.In real estate agent land maybe. In clever investor land:
A buyer’s market is when you can buy an asset for the lowest price with the highest yield, most capital gain potential and least chance of capital loss.
A seller’s market is when you can sell an asset for above its rational value – ie when the yield on current sale price makes it unattractive, yet there is buyer demand (google “greater fool theory” for more details).These ‘market times’ will often be at odds with those you describe Colin, and REAs love those terms, which they misuse to confuse.
Cheers, F.[cowboy2]I’m thinking of investing in a few tulip bulbs…
or angora goats. In the meantime I’ll probably take out a large margin loan (with interest prepaid of course) to buy shares in the South Sea Trading Company.Can I claim travelling expenses against blackjack card-counting winnings? What if I bugger it up? Can I claim a new shirt for my back?
I may consider dealing drugs in anticipation of being burgled – the courts have already ruled that stolen drug money can be written off against a dealer’s income [1].
Cheers,F.[cowboy2]
[1]”A convicted heroin dealer will be allowed to claim a $220,000 tax deduction for money lost during a drug deal…”
LinkOriginally posted by redwing:PS- If rates go up and property prices are staying flat..why the *heck* would you wait?
Brisbane house prices aren’t on average or the whole currently increasing. Short of a miracle there is no reason for them to do so in the foreseeable future – in fact the experience in the areas that boomed first and recent REIQ figures would indicate that Brisbane house prices are falling[1] and will continue heading back down to more rational levels without any further external pressure. Add a rate hike or two, and prices will fall faster and further.
Let’s have a look at how this might hypothetically play out for a first time buyer:
If home loan interest rates were to hit 9% in 2006, a drop in house prices of 20% (in real terms) would be absolutely on the cards.For our example, imagine 2 individuals, both with a maximum weekly accommodation budget of $320 are buying
PPORs.The first borrows:
$205k at 7.07% today. (For simplicity lets assume they can lock in 7.07% over 30 years)
$317 p/w repayment for 30 years
$289,000 total interest paymentsThe second waits 18 months, setting aside the savings they make by renting (let’s say $120 p/w). S/he can now buy an equivalent PPOR for $160k. With the accumulated savings, the loan required is:
$150k at 9% (once again lets assume constant rates for the loan period)
$317 p/w repayment for 19 years
$163,000 total interest paymentsAfter 19 years the first has finished paying off their PPOR and start saving or investing their $317p/w.
After 30 years, the second person has paid off their house, spending a total of $494k.
Meanwhile the first person has paid off their house (9.5 years earlier) for $243k and also invested a further $157k (or at 7% compounding such as bank interest – $211k, at 10% compounding eg shares – $261k).So which is of most benefit to the buyer – lower interest rates or lower house prices?
Jewel, who would you rather be?
At any rate (pun unintended), you have nothing to lose by waiting a year or two and investing the savings you make by renting. Remember that when investing, a low risk situation with a higher potential return is almost always a better option than a high risk situation with very little potential upside.
Cheers, F.[cowboy2]*All advice should be taken as general examples and do not take into account the personal circumstances of any individual. Besides, I just make stuff up…
Ok, for the pedants among us, here’s a link:[1] Saturday, 7 May 2005
Brisbane’s median house price declined by 3.0 per cent over the quarter- the most dramatic fall in prices since the last housing downturn in 1994-95.
LinkOriginally posted by jewel:Should I wait till next year ?
YES!
Hi Steve,
A Property Market / Economics forum category would be great. Some people have no interest in such matters, others could spend all day wallowing in statistics & predictions ([biggrin]). A photo gallery (where misuse would result in a ban) would also be great for showing off new purchases, projects & reonos and displaying charts.
Apart from that I’m totally happy with what I feel is a simple but functional (and fast thank gid) forum.
Cheers, F[cowboy2]Originally posted by first_timer:I want to buy house to save DEAD MONEY going in form of rent.
Will not the interest repayment (ie an alternative form of DEAD MONEY) be more than double the DEAD MONEY under your current arrangement?
F.[cowboy2]
Australian Society 16
