Forum Replies Created
Richmond,
I’m impressed!!! Well said, and soooooo true!!! [biggrin]
Jo
Murph,
Yes your informant is somewhat misguided.
CGT does not apply to your PPOR (principal place of residence), however if it is an investment property, then you must have owned it for a minimum of ONE YEAR (not two) to be eligible for CGT 50% reduction, that is you will still have to pay CGT but at a reduced cost.
Furthermore, there is a 6 year exemption period, which allows you to move out of your PPOR, turn it into an IP and as long as you do not claim another property as your PPOR (during this time) you will not have to wear the CGT bill.
Cheers,
Jo
Wilandel,
Smart investors would not be buying for immediate capital gains in this current market, they would be buying because the percentage drop allows them to pick up deals “at bargain basement” prices, and with methodically researched strategy, should be able to secure a well reduced property price with future CG potential.
It’s all part of the correction; nothing to be too alarmed about. It’s happened before, and I daresay will do so again in future years to come….think of it as the “calm before the storm”.
BTW increased popularity for properties further than 20km to CBD is attributed to several factors, one of which of course is affordability, however, it also has to do with a recalculation of things like “average travelling time (to work)” which years ago was approx. 30 mins, whereas today it has extended to approx. 60-75 mins.
It’s all a part of change, which is always needed, but rarely welcomed by most. [blush2]
Cheers,
Jo
Originally posted by aussierogue:i reckon middle ring suburbs – ie those 10-20 km from the melbourne cbd have seen a 10-15 pct drop in price over the last 6 months.
houses that used to ask 440 now asking 380. 380 now asking 340 etc etc.
inner suburbs and ones near the sea holding there price
anyone agree
That sounds pretty much on the money aussie, you have observed correctly!!! Although some suburbs within this radius have fallen further than 15% and by as much as 20-25% so how knows, you may get your desired 30% drop after all. Time will tell. [blink]
Cheers,
Jo
Originally posted by MiniMogul:God loves you Monopoly, but I, flawed human that I am, find it damn hard.
Lucky for me I don’t hold any false aspirations then isn’t it??? [blush2]
Agile,
Maybe you should try on the word “troll” for size.
And if you want to talk about “backflips” refer to the racist thread, you make far greater of use of this tactic than I do.
Cheers,
Jo
Originally posted by Gramyre:I dont think Monopoly was saying the growth came from LOTR, just the international attention to the country.
Thanks Gramyre, how refreshing to see someone actually read and UNDERSTAND plain #@$%# english!!!
Cheers, [biggrin]
Jo
Originally posted by agile:an overseas market which has largely achieved huge recognition as the direct result of media popularity thanks to the LOTR phenomena.Are you kidding Monopoly? You are seriously putting the growth of NZ property values down to a movie that was made in the country.
Tim/Agile, [offtopic]
Please re-read MY quote to which you refer and to which I am now both highlighting in bold and underlining, in the hope that this time you will use your greater gift of comprehension and read the statement as I intended it be read and understood.
Jo
Originally posted by MiniMogul:Here is the truth, and unfortunately I know that there are some here that will find this the hardest to deal with. It is: that the back of bourke properties (i.e. mine, steve’s in ‘west wendouree’, westan’s, del’s etc) that have way way way outperformed the blue chip or the up and coming inner city areas for capital growth.
That so called “truth” Mini is relevant only to you and such named others because of your property purchases in NZ, where (indisputably) the growth has indeed outstripped any major Australian city. However (I may be wrong, but I am assuming here that) Yack’s “warning” pertains to purchasing of IPs in this country, and not in an overseas market which has largely achieved huge recognition as the direct result of media popularity thanks to the LOTR phenomena.
Cheers,
Jo
Point taken qwerty,
But as I said earlier, if it doesn’t appeal at first round, the second time will again not necessarily win my favour. Not necessarily because of price, but because of growth potential and/or location. I have set my own boundaries as to where I will buy and if it does not fall into that parameter, it is a non-goer, irrespective of skyrocketing trends, which incidently can (and do) change periodically.
All things being equal, it would have to be a DAMN good deal, I mean so good, that I just couldn’t resist; and being the aggressive purchaser that will not budge, is hardly going to give them the profit margins they hope (and probably could) achieve with a less steadfast buyer!!!
Jo
Nahhhhh [eh] don’t think so qwerty!!!
If I am not likely to “agree” when first informed of these deals, I seriously doubt I will be taking them on board the second time round!!!
Cheers, [biggrin]
Jo
Oh pleazzzzzzzzzzzzzz…………
How about reading a few posts first before you ask this question that has been done to death!!!!
I agree qwerty, but here’s the thing:
PEOPLE DON’T LIKE HEARING THE TRUTH!!!
They expect to post their ideas/plans up and that we “seasoned” investors blow wind up their perverbial backsides with comments like “yeah, hey dumbass, that’s a great idea, sure sell your IP that has grown by some 50% to buy 2 sh** holes out the back of bourke (if you can find them)”!!! Really, it doesn’t matter what we say, unless it fits nicely into their little box, they will just disregard it and go in blind anyway!!!
Hence, as far as I’m concerned, my patience doesn’t extend to stupidity; I am way too over it!!! [eh]
Alas, the horse holding up my “welcome wagon” has bolted!!! [blink]
Jo
If 11sec rule doesn’t work, what then?
Get over it!!! [rolleyesanim]
Take more time and review your strategy!!!
After all, it is a guideline (rule of thumb) and I don’t think it’s intention was ever to become the 11th commandment!!!
Sheesh….[blush2]
Hi Yack,
You know my opinion on this matter, we have discussed it many times. The only discrepancy between our opinions is that I believe that NOW is the time to buy BUT not at the expense of selling off a prime CG property (as I have read in this forum way too often of late) and/or if you are at risk of overextending your finances.
Ensuring both of these facts are taken into consideration, the market is rip for the picking of “good deals” and by that I mean vendors are open to negotiation because of fewer purchasers looking to buy.
IMO fear and ignorance fuels bad judgement, and if people don’t do their homework first, then they will make horrendous mistakes, and one of them may well be sitting on their hands when the market (as history has shown, will) eventually turn around and climb upwards.
By the way Yack, I have seen the rise and fall of several markets over my 23 years of investing, but unlike you, this phase of the property cycle has been/is one of my favourite times, secondary only of course to the “boom” times when I (as did many others) made a killing!! And can say with absolute confidence will do so again!!!
All in all though, I second your warning wholeheartedly!!!
Cheers, [biggrin]
Jo
Give it up Derek, Yack, Terry….
The sooner you “smart boys” realise that more and more people with the same views as Michael are going to be coming out in droves, the more enjoyment you will get from reading others posts trying to talk them into doing what YOU and I know has worked for decades!!!
Personally, I’m sick of trying to talk sense and breath life back into a lost cause!!!
So Michael honey, go ahead sell the appreciating asset, don’t wait, do it now while you can still get a lesser price, after all it’s only money!!!! [blink]
See you at the finish line sweetpea!!! [biggrin]
Jo
Hi SuperTed,
I agree that really you can read all the articles, books, listen to the new reports, documentaries, but to fully appreciate the level of tolerance for racism in this, or any country, you need to experience it first hand.
Anything short of that, is (a) pure speculation, and at best (b) blind ignorance!!!
We live in a great country, and should be proud to be here, especially when you see what things are like beyond our waters!!!
Cheers,
Jo
Originally posted by PaulDobson:We simply get full contact details of prospective buyers on the phone (including their drivers licence number) and ask them if they’d like to have a look inside. They all seem to be very happy that they can have a look around inside by themselves and we’ve never had and problems with this method of showing our houses. If we don’t like the sound of them on the phone, they don’t get the offer.
Paul,
My question to you is this, what happens when you get a low life who can btw quote any licence number over the phone (perhaps his own, with a few jumbled around for good measure) and false details, pleasant sounding voice and amicable nature, all nice on the surface but then…..goes through and steals, or worse) trashes your house??? Or do you suffer from the delluision of “it will never happen to me”???
REALITY CHECK: “Luck” may save you 9 times out of 10, but heaven help you on that 10th occasion which may leave you feeling a little more than sorry for being so trustworthy!!! [blush2]
Tip: Have Rick’s number on standby JIC (just in case)!!! [blink]
Jo
Brooke,
Smells like dried up spilt milk to me!!! [bawl]
I do hope you find a way around your dilema but unfortunately, unless one does their DD first, especially with “wraps” (that is, with the view to onsell) they are looking for trouble and shouldn’t be surprised when it finds them!!!
What you never heard the expression “horse first, cart later”??? Might be worthwhile heeding that advice in future, unless of course you are prepared to keep the buggie for yourself then that’s not a problem is it??? [blink]
But hey, hang in there; THEY are born everyday (so it’s said) and I’m sure one of them will come along sooner or later and release you from your bind!!! (fingers crossed)!!! [biggrin]
Jo
Originally posted by padmaa23108:[biggrin]Jo,
I didnot take offence at your comments. Truth is harsh always.I’m glad you didn’t take offence, none was intended. More importantly, I am glad to hear that the message did get through, this is mostly to Derek’s credit for so aptly highlighting the value of compounding interest.
As per renting to students, the timing is good because the property is vacant now, (although it will have to stay vacant next 2 months) but that gives us time to paint, recarpet etc.
How can this be better??? The property is VACANT hence not only are you (a) losing money, but more importantly (b) the work will not be deductible (although it can be factored in as part of Capital Expenditure in the event of a future sale).
I still am not sure whether we should move ourselves into a rented place. Any suggestions?
Stay put!!! [blink] Why do you need to move if the works are only “cosmetic” after all, the worst case scenario would be some minor “inconvenience” ie. having to endure paint odours, or moving furniture in readiness for carpet to be laid!!!
I’m sorry if it sounds blunt, but I’m afraid it sounds as though you haven’t done your homework and that every direction you seem to move in is likely to be costing you more and more money!!!
Good luck; hope you sort it all out.
Jo
