Forum Replies Created
If your finances are already tight, purchasing another property that your husband would live in, paying bills on 2 properties etc will leave you in a worse financial situation.
Why would you sell your current property under market value?
I think the advice to look at US property is a good one. At your age as a long term investment, some of the rental returns are great for cashflow and who knows what a US$30k property could be worth in the future.
It is very hard to save enough money in Australia to purchase property,especially with stamp duty and the value just isn’t there like it is in US and other places.
I wouldn’t be inclined to sign up to low rent schemes under NRAS. The key driver of property value growth in the area is a tight rental market leading to very high rents. Any agreement which prevents you from achieving market rent will devalue the property.
What are your objectives of doing the swap?
An alternative would be to live in each others properties, without purchasing from each other, then you get other tax benefits also.
The last time I checked Westpac allowed 85% loans with no LMI.
The Tarneit boat has already sailed. I purchased there a year ago, $140k for 540 sqm. The same land today is $220-$240k.
I’m originally from Christchurch and have previously owned a house there.
I think that the earthquakes (which are still happening btw) will have too much of an impact on the property market.
It is now very hard to get insurance and they expect the earthquakes will continue. There is great uncertainty there, my father is a retailer in Christchurch and there is very little money being spent there. I expect that if the earthquakes continue as they have been, many people will move elsewhere and very few people would be willing to move there.
The medium-long term prospects of property growth there are minimal.
Packer wrote:I don't know to much about property but I know a thing or two about the oil & gas industry.
I have been heavily involved on some of the biggest projects in Australia and yes, I am karratha lad
Born and bred. So I also know a thing or two about the effects these major jobs has on a community on all aspects
including overpriced houses and B**%S#*T returns.
Let's not compare Gladstone with Karratha just because the GLNG project will be going ahead, this job will at it's peak employ 3000 people, 1000 of which are white collars, 2000 blue collars. There will be a camp built for the workers and once the job is done it will have a maintenance team of 200, this is not a significant population boost into town. Gladstone has allot of property on the market, so the simple supply&demand is not going to outweigh like it has and is still in Karratha.
Also Karratha is an established mining town, they didn't just have one project than boom!!!! No it had several major projects and it is ongoing at the moment. Karratha is the bottle neck for most exports in the North West.
Buy a smoko van if you want to cash in on that project, seriously! Or own a brothel.You are clearly not aware of the many LNG projects happening in Gladstone that will employ an extra 10,000 at the peak in a town which is currently about 40,000 people with a vacancy rate of 0.6% before any work has started.
All the Gladstone projects are costing a total of $40 billion, that’s $1 million per current resident.
For some reason those from Karratha and Hedland think they are so special it can never happen elsewhere.
I was going to say Gladstone also and I am unbiased, have nothing to sell you and have already purchased there myself.
Also while not an expert on the Gold Coast myself, by all accounts I have read it is very costly for what you get there.
As you can see TKline you are preaching to the unconverted.
I am a strategy manager working in a major bank and the more I read, the more concerned I am about house prices in Australia’s capital cities.
I am a property investor, (currently have 3 IPs) but have been very selective in my purchases. I live in Sydney but would never be crazy enough to purchase at the stupid prices that properties go for here, nor let myself get close to what the banks tell me I could afford to borrow.
Not sure how to post a graph here, but there is a great one that demonstrates that from 1978 to 2010 the Australian workforce participation rate (i.e. male and female workforce participation) increased marginally from 57.1% to 62.5%. Over the same period Mortgage debt increased from 24% of Disposable income to 141%!! This certainly can’t be explained by more women in the workforce, but rather relaxed credit from banks. If banks were still tight with lending, average house prices would be much lower, it would take longer to save to buy a house BUT the time taken to pay off the house and all of the debt would be much much less and everyone would be much better off financially. Unfortunately we live in a debt heavy society which artificially drives up house prices.
Lets take as an example…. assume that the rules of the sharemarket stated that you couldnt borrow money to buy shares and the index trades at 10,000. Then they change the rules, allowing people to purchase with a 50% deposit, and the bank can lend them the rest so more money floods into the sharemarket, as everyone feels they can suddenly afford more shares. Half the people purchase twice as much value in shares and the market index rockets to 15,000, due to extra debt. Is the intrinsic value of the companies that people have invested in actually any greater than it was before? No! Just credit was relaxed and people now have more debt. That is exactly what has happened in the Australian housing market (and every other market in the world…. until recently that is).
The lack of housing supply argument is also a fallacy, the same was claimed in the UK and didn’t save their housing market, even California, one of the epicentres of the US housing crash was claimed to have a housing shortage, hence the high prices that were being reached at the peak.
Just as an aside – It amused me recently when Steve McKnight provided his regular market update. He started by telling us how all the pricing pressure would come from the mining sector where there is huge job growth and associated pay increases…. then continued to tell us how the Sydney market was going to have the best growth of the major cities….. huh? Sydney, the mining capital of Australia, I don’t think so. Thats why my investments are in places like Gladstone, where capital growth is much more likely.
It also works the other way too John. Multiple vacancies from a single advertisement, for example this ad for a number of boilermakers and welders http://www.seek.com.au/Job/boilermakers-welders-gladstone/in/gladstone-central-qld/18527791
Also interesting to note that there are currently only 115 properties advertised for rent in realestate.com.au, but 850 jobs in Gladstone on seek.com.au.
This is a sure sign of a huge housing shortage coming soon, with huge competition for rentals which will rapidly increase rents in coming months.
How come there is a new section for iClub when they never met their promise to provide a separate forum for those that paid to be involved in the 250k club??
No you can set up an AUD account https://fxtrade.oanda.com/your_account/fxtrade/multicurrency_accounts
travelex will charge you 300+ basis points + 1%. Oanda will charge you 2 or 3 basis points. No comparison.
you are best to do it through a trading account with a company like http://www.oanda.com. They will give you a much better rate than the local banks will. There are added benefits that you can get leverage allowing you to trade at up to 50:1 ratio. (i.e. with $1k in your account you could trade up to $50k)
They missed the real argument against the figures used in the presentation. They used demographia data for everywhere EXCEPT Australia (even though it is available) and substituted this for the UBS data, which significantly underestimates the house value to income ratio. If they had used the correct data Australia sticks out as having by far the worst of all countries listed.
Rich Dad’s prophecy was particularly interesting reading. If he is correct, the US sharemarket will crash around 2014 as all the Baby Boomers start to retire and empty their 401k accounts. The thoughts behind his argument were very compelling. Knowing a sharemarket crash is coming including the likely timing is a huge advantage for wealth creation.
They will be required to retain the records for 7 years.
The Bank Ombudsman should be able to assist you with getting hold of the recording.
Great work Jason.
I see you have a certain style that you take from place to place. I take it that these kitchens and bathrooms are inexpensive to get this look?
Are you able to share with us the figures from some of these deals?
Cheers,
Matt
