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I’ll tell you what happens. America invades another oil rich country, that what[medieval]
Just jokes. I like America.
But if prices went up like that then the global economy would be effected and no doubt there would be some heavy boardroom politics going on. But at the end of the day people still have to rent.
You will always miss 100% of the shots you don’t take!
I totally agree with you Investigator and sorry foundation, disagree with you.
Rent is based on supply and demand. I know agents who specifically target low income earners because regardless of how much the rent is set at the government just comes along and tops up their rent allowance. Most low income earners do not have alot of choice when it comes to where they live. Things like public transport, shops ect are the main driving force that determmine where they rent.
I own a property in a large country town in Victoria and the agent says that you can’t rent anything in town for $125 a week and therfor I could raise the rent to $135 with no problems keeping the tenant as there is knowwhere else to go.
Look at the price of fuel and cigarettes for example. Do you see people not buying fuel or smoking because of the massive price shifts? No. People pay because they don’t have a choice really. If they can’t afford to buy their own place then they have to rent. Sure, they might move from a more expensive place like Canberra to say Adelaide but realisicly they don’t. They just cant afford it and its too scary.
Wages have very little effect on the average rent. If you earn more you simply live in a nicer area and of course pay alot more for it. But it is not the wage that dictates this, just the lifestyle choice.
You will always miss 100% of the shots you don’t take!
Thanks guys for your responses so far. Looks like I’m not the only on addicted to this site.[confused2]
So let me get this straight! I can estimate the value of things like alarm systmes and dishwashers ect? What sort of percentage can you claim on these sort of items and how do I find this out?
I have a house I have rented out for over 6 year and never claimed depreciation. Can this be backdated?If I have just purchased a house and don’t know much about the items in question eg dishwasher age and value then how do I go about valuing it?
You will always miss 100% of the shots you don’t take!
Not sure I should do this but what the heck.
Try SA. Some areas of SA are the most affordable homes I have ever seen and I think the area will improve over time. You have to research the suburbs and pick one worthwhile, but there are large populations of middle – low income earners there and they have to live somewhere. Try areas like Smithfield Plains or Elizabeth.
I just purchased a 3br brick 200m from primary school and kindergarten. 100m from local shops. Less then 1KM from train station. 2km from large shopping complex. Bus stops nearby.
If you are poor then you need these ammenities close and eventually when the population demographics change these poor suburbs will become very sought after because the infrstructure will already be there.
Cost – $122 500. Rent – $160pw with nothing to do. Basic home but it has nice street appeal compared to some of the others.
Asking price? $130000 – $140000
Hope this helps.
Remember – do research. There are some terrible areas you do not want to buy in aswell.
I am a firm believer about teaching a man to fish so he can catch many rather than just giving give him one fish but I also believe in God. I have been blessed in my life and would like to share that with others
You will always miss 100% of the shots you don’t take!
Maybe not now AussieRpuge but I bet you that befor our time there whould have been poor areas surrounding Melbourne that are now affluent.
Anyway Melbourne is a large city indeed and I guess 30-40 Km away is not far in comparison to say Adelaide where 30 – 40 KM is a long way. We ar in the poor quater here and Adelaide is only 38km away. You see what I mean. Eventually this area has got to becoume sought after.
Where else can you buy that close to the city for $120 000 or less.You will always miss 100% of the shots you don’t take!
I know what you are saying aussierouge but most people in low income areas don’t have much to do with the cities. They have jobs out in the burbs or industrial sites that arn’t particulary close to the city. They can be 30-40km away from any major city. The shopping centers ect grow up around the population centres and become the hub of the local area.
You will always miss 100% of the shots you don’t take!
I mostly agree with you spanky. IMO anytime is a good time to invest. Sure if you jump into the market at the top then you MAY lose some profit if the market increases dramatically. But on the other hand if you jump in too late (like most people) then you are sure to lose money aswell. Or if you tie your money up in other honey pots eg the US then you may miss out on the honey truck that just went by.
If I had not bought my first house 10 years ago then I may not have the equity to jump into the house I live in now. The media drives most of the uneducated investing done in property.
I love it when the media tells doom and gloom stories about interest rates or falling property markets. It drives prices way down so we can pick them up cheap. Most people still have to rent.
We are looking now at houses that are cash flow neutral that we know will only come up in value in the future but pay for themselves for now.
The tall and short of it is this: Don’t miss the buck you can make today waiting for the two bucks you MAY or MAY NOT make tomorrow.[biggrin]
You will always miss 100% of the shots you don’t take!
The trick is to buy something cheap that needs heaps of work. You live in it and do it up as you can afford. My wife and I sqeezed our family into a 3br ex-housing commission house and hit the payments hard in the first few years. The house was only $32500. Buy what you can afford and look for the dumps first and work your way up to what you really want.
You will always miss 100% of the shots you don’t take!
Thanks all for your comments so far. If anyone else has some suggestions please feel free.
So far I’m leaning towards just increasing the rent. The tenant has been there for years and does not seem to want to move so I think he will not be too bothered.
You will always miss 100% of the shots you don’t take!
But I can still buy more properties just using the equity without having to sell. And still keep getting rent. Just not as much
You will always miss 100% of the shots you don’t take!
Well I sort of agree but this house is not exactly rural as it is in the largest population center in East Gippsland. RAAF base Nearby ect ect. Were talking about SALE in Victoria.
Hope that helps
You will always miss 100% of the shots you don’t take!
With our IP I pay the water bill. It gives me something to claim at the end of the year and offsets the proffits I make. Also gives the tenant one less thing to skip on if they decide to do a runner.
You will always miss 100% of the shots you don’t take!
IMHO Latham is just a people pleaser. He will say whatever the minorities want him to say. All promise no provision.
At least John Howard makes a decision and stands by it.
I don’t think that having a new face in the hot seat is a great justification for removing something that is working fine.
For some reason Aussies start to feel a little rebelious when power has been left with someone for long. Tall poppy sindrome?
You will always miss 100% of the shots you don’t take!
IMHO I believe that Latham is too much of a people pleaser. He will promise do whatever will make the most people happy. Not always what is good for the country.
In realation to PI this sort of attitude will only drag the countries economic growth down into the dark ages again.
Howard has a good grasp of whats going on in the world and has the balls to to what he thinks is right not just what some minority groups want.
Don’t flame me, just my opinion.
You will always miss 100% of the shots you don’t take!
Thanks G7
You will always miss 100% of the shots you don’t take!
You know the old saying. When you have it you never use it, when you don’t you need it.
IMHO It is just far too great a risk to not have.
You would not take $100 000 or what ever your property is worth into a casino and put it on red would you?
Its only a few hundrend bucks and it’s one of the few things you can claim back on tax.
Tell your brother not to take the risk!
You will always miss 100% of the shots you don’t take!
No Problems,
I’m still going through the finance at the moment so I won’t count too many chickens yet. When it is all finalised then I would be happy to break it down for you.
As soon as I have a contract done I would be happy to share location ect. But if it falls through then I don’t want to be in competition with half this forum for any other properties.[eh]
Sorry if that is a little cold but it is hard enough to find good properties as it is.
You will always miss 100% of the shots you don’t take!
True,
But I have heard bandied about something like 2% or 2.5% of the income?
Anyone else heard of something like this.
You will always miss 100% of the shots you don’t take!
Thanks Guy’s,
As for your question Yack, yes they are a long way from home but the population is over 20 000 with 5 agencies so management should not be a problem. I don’t think I will have to do much of anything too them as they are already rented out and have been for a long time.
You will always miss 100% of the shots you don’t take!
I have found a few properties like this as well.
I guess the answer to your question depends on whether you are investing for cashflow or growth?
As far as I can see if you think cashflow is King then what difference does it make if the property value increases or not? If it does (bonus) then you are still gaining equity even though the property debt is not decreasing.
If on the other hand you want growth properties then the answer is still the same. A property located well will increase in value no matter whether the loan is IO or P&I.
It comes down to this! Do you want the extra cash now or later? The extra money you get from say 5… cashflow positive properties with IO loans can be put towards paying the cost of a negatively geard property which is increasing in value.
Best of both worlds.
My 2c worth.
You will always miss 100% of the shots you don’t take!
