I learnt that the Democrats in Tas are urging the state govt to reconsider Stamp duty like NSW has:

http://www.abc.net.au/news/newsitems/s1085499.htm

I also learnt from a dream last night that I don’t want to work full time anymore – funny that – still working full time (but not till after the next 2 weeks holidays……..)
Timbo

Paula,

saying that a town has a lot of listings per population has to be relevant to something else (i.e. compared to other populations). So really you probably need some other basic indicators such as:

– what are the fundamentals of the particular property (ie price and rent)

– what is trends of the town (i.e. population trends (declining or inclining)

– what local industry exists in the town

– what is the vacancy rate for rentals

– are there any developments proposed for the town

A simple thing you can do is ask all the local real estate agents for a copy of their rental listings, and ask them is it easy or hard to rent a place (if they say we have no rentals or say you can have whatever place you want either way it is a fair indication)

– I would be checking other fundamentals around the particular property including transport, shops and schools

– is the amount of houses for sale comparable with other similarly towns and so what basis are you saying there are a lot of properties listed?

Timbo

I remember reading in an Australian investing book:

– 20 years ago 18 taxpayers per 1 welfare recipient
– today 6 taxpayers per 1 welfare recipient
– in 2020 1 taxpayer per 1 welfare recipient

Even if these predictions are wrong it sure points towards Australia having an ongoing tax base where we are taxed more and more.

So while we might not like this, I kinda look at it and go ‘well you can understand (rightly or wrongly) that it is happening because of a decreasing revenue base for governments.

Sure they mismanage, and where the money goes is questionable.

However maybe it is more relevant to simply expect more and more of this and plan accordingly.

My 2c worth.

TImbo

Thanks Phil,
Timbo

The way I see it is that if the government has increased the cost of owning/investing in IP’s then in due time the market will cover those costs and in fact probably increase on them through additional rents and capital gain.

In the short term there will be panic, people will sell (why on earth would you sell?).

Rents increasing very soon I predict.

Tim

Steve,

have just been reading your book which is excellent.

Do you think this move by Carr is going to kill the NSW property market or just push prices up?

Any thoughts would be appreciated.

Tim