Forum Replies Created
You need advice,
as you are a developer so they are not subject to GST, they are subject to TAX if the PPOR does not apply, also GST.
Lots of issues here.
Can make lots of money, make an investment and spend some money on advice.
Originally posted by Wylie:I little less.
The house doubled in price twice over the 14 years – cost $54K in 1984 and we sold it for $208K in about 1998 I wish we still had it, but children and lifestyle have to fit in with our investing, so we made the hard decision to take the profit and sold it.
Ahhhhhh the 80’s, I remember my bosses never used to calc clients bills on a time basis , just add 10% per annum until the late 80’s where it was 15-20%.
Nowadays if the bill goes up $10 we have to explain value added.
Wages went up around 10% as well, wonder how property is going to continue the rise, when :-
Inflation and wage growth is around 3%, thoughts of 4%+ cause the Reserve to give investors nightmares,
the exceptional growth that came from the deregualtion of banking cannot be reproduced
Households have run out of productive capacity, although we currently let mums have 3-6mths off after children, maybe we can adopt the russian model, that will give property growth, some legs, they can go back to work the afternoon after birth with the baby on their back.
Originally posted by Dazzling:Quote:
Negative gearing on a 3% gross yield really does look challenging from an accountanting perspective. [/b][/size=2][/navy]
Yep, sure does, opinon apprecated as always.
Foundation you keep forgetting that property doubles every 7 years, so in 20 years it will be one year short of a 800% increase no matter what the annual wage rate increase or inflation.
How can you loose ??????
That assumes that the rest of the world is stupid enough to keep loaning us money on no productive assets.
Sorry could’nt help myself.
Hope that minerals boom keeps running, and the long term economists are wrong.
Hmmm, I hear what you are saying, but what if the neg gearing investors who are bleeding have to dump their townhouses and units, after another rate rise ????
Would’nt that put downward pressure on property prices encouraging a shift from renting to buying , and hence a further softening on rents.
Also think a lot has been said in Sydney of Rental shortages, we do not have a shortage we are just returning to neutral.
2% is our historical neutral becasuse it means 1/2% in Nth Shore and Coast, and up to 5% in Penrith.
Also there is a LOT of stock still sitting with developers who are now just starting to cut prices. A 37 T/house development in Glenhaven selling very slowly for the last 18 mths has just cut the price from 480 to 450.
They are very good T/houses too not like some of the rubbish that was churned out. (we have a 8 T/house O/55 development that has not sold 1 in a year in same street.)
Just not sure about this pressure on rents.
Look I just can’t sit by and listen to you people bad mouth our regulators.
Last year I failed to pay my annual company statement fee, for the document I self generate from the internet, from the bill I download ed from the info I provide, and was punished with a $270.00 fine.
Rightly so I say, god knows what would happen if this went on unabated
Originally posted by Pudestcon:when you factor in the increased upward pressure on rental returns caused by the interest rate increase.
Can you explain how interest rates rises cause rent increases.
Always thought rent like all commodities was supply and demand.
I know what you mean, and we will not know till all the fine print is known.
I have always found in past budgets.
“That what the treasurer giveth, the ATO taketh away”
we will see.
Rgds Terry
We have several who despite expressing our concerns have negatively geared down to the zero tax threshold.
Another accountant once had this conversation.
Acc ” your refund is $xxxxxx”
Client ” but … I thougfht it would be more, after neg gearing”
Acc “well actually you have got back ALL your PAYG w’holding… you can’t get back any more”
Client ” ….but the guy at the seminar said…”
We have also had clients sell inner city departments, held for 5 years that after taking purchase and sell costs netted a loss. But hey at least they got some refunds.
They are in my building downstairs.
As an accountant I was invited to an info morning for accountants they were running. So as to keep playing happy families in the building I went along.
Was very formula driven, had a lot of staff posing as other accounants, pad on knee replying yeah !!! to every rhetorical question.
Was pretty basic for me frankly and politely made my excuses. They were running these morning solid for months, judging by the trays of cakes made up in our cafe downstairs each morning.
Reminded me of my days doing door to door when I left school.
He will get support, but they look pretty gung ho.
Terry
Cruel.
But true
Funny you mention that but on Budget morning SMH had article in its regular money feature, titled like “When will negatively geared investors sell”
A lot of these people believe it will double every 7 years (heard that a lot here as well) and for buyers in 2002-2004, well they may be a ltlle concerned about their plans right now.
I’m an accountant and among my peers we know of a lot of neg investors bleeding big time, in the hopes that the market will turn around if they just hold on long enough.
Many of them are early to mid 50’s and this is their big strategy for retirement. They literally cannot hang on for 10 years as they intended to wait seven, take the profit and retire with a Mil.
How long they will wait will be interesting.
Originally posted by Mkc:l was told selling my last property [ NSW ] sellers everywhere were trying to hang on to boom prices but they’re dreaming .
Seeing the same.
Agents use these people to sell other properties. Show you three over priced and the people on the money look cheap. You have to know what they are selling for as what people are asking has lost its relevance.
In NW Sydney same experience. Saw a place at 850k agent said they had turned it down 3 mths before when it was 899k, think it went for 825k, saw another same day 940k, agent asked us what we thought, told him it was 100k over priced, 6 weeks later went for 850k,
looked at a realy nice one, would have got it too except we have pets, was on a 1,200k and had been re priced by another agent at 1,030k, got the feeling they would have grabbed 980k,
An agent told us of another at 1,200k, knew the street, and said would not pay that ,in that street, would not go over 1M, he paused and quietly said probably would not have to.
Still looking and it gets better every day.
Happens every time.
Estate Mortgage
Pyramid Building Soc
Cambridge Credit.
Every Boom, at least one high interest investment collaspes. People never learn.
At some stage ppl must be responsible for themselves and if looks too good to be true…..
Bet this will not be the last. Next twelve months should be interesting
Looking in Nth West Sydney for around 4 mths, and no sign of leveling here.
Compare a 800k property 6 mths ago to current stock offered and you get a lot more for your buck. Whole new suburbs open up.
Move up to 1M+ and the viewing gets even better.
Am I buying sure, but not till I see em cry.
Figure we have over a year to go.
Speaking from experience areas of expansion that are all basically H & L
stall in the years following development.May perform strongly during the build and shortly after but during the next cycle stall.
Cherrybrook in Sydney NW was a premium H & L area in 80’s. Since early 90’s many of those same houses have not doubled in price (actually very few have ). Think same for Illawaong / Menai
in South.Will be same for Kellyville, with some houses (less than 4 yr old ) now on the market for below replacement cost.
Yep premium for that wood and glue smell, but adjusts later.
As a previous commercial tennant we previously got stuck with the lease costs, it was very common in Sydney circa late 80’s and back then it was double what you are talking about.
Originally posted by bruham:Sydney property must rise due to lack of room to expand.
Looking for your thoughts.bruham.[blink]
Right now folks, they seem to be going up.I know what people are saying about the city apartments but medium high density is happening all over the place.
Have blocks of town houses in our area (Hills) that are not selling. One O/55 has sold none of 8 in 6 mths, just one of many examples, and yet other projects are right now breaking ground.
Should be interesting.Not sure here, but if you have rented out 1/2 house don’t you have a taxable cap gain on 1/2 of your proceeds including adding back your depn claim.???
