Forum Replies Created
i sense sarcasm [ohno]
do you have any great deals you recently done?
I hope I am not reasponsible for sending you back to alcohol foundation[biggrin]. i enjoy your theories
cheers
Tony
ask for a pay rise… first have in your mind why you deserve it .Dont ask if you dont.
get rid of all non essential expenses ,pay tv ,porn mags (may be essential for some) etc
make a series of goals with set timelines and stick to it , it sometimes pays to team up with a friend that may be in a similar predicament. Like going to gym if you pair up, your motivation can be not to let a friend down.
Originally posted by tammy:If you use the rebate scenario, in the future when you sell, for the purposes of CGT, do you use the price pre or post rebate?
TammyHi Tammy , the CGT implications are post rebate . ie of the price is $350K , you had a rebate of $70K then your net price is $280K lets say in 3 years you sell it for $400K then your gain is $120K not $50K (less allowable selling expenses etc).
Good point Dazzling , but unfortunately the media is a beat up of paid ads . A large portion of stories are advertorials (paid editorials). An expert is someone that made there money by doing not by telling people how to …
I think we should all be taking this negative media hype and putting it in our negotiating kit , to assist in some real mean low ball offers.
Love what you do.
Originally posted by gmh454:Wish they would tell it to the ppl of western Sydney, sure it would make em happier.[hmm]
[thumbsupanim] liked your comment
Once again thanks for your insight into information that is utter crap.
So these figures below are all wrong are they. The share price does not reflect profit , but being an expert you would know this.
(2004)Telstra shareholders will receive the first instalment of the promised three-year $4.5 billion capital return through an off-market share buyback and a special 6¢ dividend.
(2005)The telco yesterday posted a record net profit of $4.12 billion for the year ending June 30, slightly below analysts’ forecasts of $4.18 billion, on flat underlying sales revenue of $20.7 billion.
Telstra has reported an 8 per cent increase in annual profit to $4.447 billion, slightly higher than market forecasts.
Analysts had been tipping $4.39 billion.
No share experts out there can still explain the calculations…keep googling[blink]
Hello foundation ,
Wow , I am drained from reading the history of the financial world of Australia. Your insight definately creates some personal thoughts that I can overcome.
Please dont take this comment offensively , but as an analyst or anlytical type have you ever invested? Please dont feel obligated to answer that question, but with in my experience the more left brain people are the less likelyhood of them making the leap across the river of fear into the world of investing.
You definately made some interesting points. Just some challenges for yourself to consider . How does can you explain Mumbai, London , New York . Bordeaux and even Mosman (NSW). The prices of real estate far outstrip the average income of the local economies yet the prices are telephone book numbers.
India up until 2 years ago had no lending facilities , they bought everything with cash. Some would argue this is why it is a 3rd world country , but bear in mind it has the largest middle class population in the world , it is actually bigger than the entire pop. of the USA (more than 350M) . An average home in Sth Delhi is about 3.5M Aussie dollars, a substantial home will fetch $20M+
World pricing parity has a major role to play as the balance of economies occurs during the next 20-30years. I believe as the manufacturing industry is absorbed by the likes of China and to a lessor extent India , world pricing will balance and become more relative to western countries.
I believe there is a simple formula for property, in conjunction with some basic considerations. As opposed to the share market none of us have the control of an institutional buyer that can dictate pricing with a simple buy/sell strategy.
The property formula is supply and demand.
More people = more property required + Increase in prices
ie Tasmania = future debarcle
Melb/Syd = 12-24 mth jump in pricing by at least 8%p.a for 5 years
Why ? population growth exceeds construction by 8000-14000 people p.a , this has been occuring for the last 2 years and is not sustainable . Will incomes accept a price rise? definately
The majority of people i know earn $100K+ , this in a large part are trades people. Rental pricing is dramatically increasing, average household numbers are reducing as people stay single longer or courteous of a divorce. To rectify the construction issue is not a simple process , planning issues and red tape holds back the ability to bring new stock into the market at short notice. The answer is buy in bluechip areas , hubs that people will always want to live in.
Last query for you , Do you believe we are on the verge of a deflationary period / bust?
cheers
Tony
PS I wish my great ,great ,great grandparents, were the idiots that bought Collins St property and it dropped by 70% and i was the poor sod who inherited that terrible event. (sarcasm intended)[biggrin]
Happy B’day DraconisV,
you are miles ahead of the pack just by showing interest in investing. Never lose site of your goals
cheers
Tony
i think you are mad even considering paying too much for something at the top of the market , yield reflects a lag in rental movement and it would be a major cashflow burden and will restrcit your ability to continue investing. Offer $400K otherwise forget it . You should wait 12mths and then you will experience what sydney and melbourne have been thru , and then someone might just accept that $400K offer.
Offer low ball offers in Sydney or Melbourne , the yields are much better and there are real opportunities to pick up bargains
hello all
From Foundation
“I like the price/dividend ratio myself, by price/earnings (PE) is commonly accepted. Your point being?”My point is all of these ‘share experts’ quote wonderful sure fire figures , yet less than 1% could explain how their anlysis is calculated , so what does that mean?
For example the ASX 100 is based on the top 100 performing companies. If a company under performs then it is dropped off the list and the next best company will then appear into the figures. The average is then used to calculate the yield across the top 100 listed companies in Australia.
Imagine if we had the APX 100 the yields would be in the 1000’s of percents. This is why i get annoyed when i see comparisons of property vs shares , and the ‘expert’ still cannot explain the figures.
So this how we draw a comparison :
Property median capital growth (centre point) , this counts every piece of crap on planet Australia inside the metrpolitan arc vs the top 100 companies in Australia. Sounds like a reasonable judgement dont you think crashy?
Thats right boys and girls a loss does not count !!
These figures are a little bit misleading then?
Hi Foundation,
Have found your post really intriguing and eagerly wait the next chapter ,
[grad] thanks tony
Hi crashy ,
still waiting on that calculation , or dont you understand it ??? ASX 100 and ALL ORDS ??? Keep searching ….
If you wish to draw comparisons perhaps you should know how the figures are assessed . Dont just read numbers crashy and think you are an expert! Learn what they mean by how they are calculated.
I am eagerly awaiting my enlightenment…
Hello elkam ,
yes you can accrue losses against CGT . Many of my clients are based overseas . The depreciation and other losses can be offset against the CGT.
Also using the NZ trust with a company trustee , this gives the ability to just transfer the shares of the company when you sell the property and the new purchaser takes over the sale there is no stamp duty , this benefits both parties. Therefore the purchaser is simply buying shares in a company.
You need great accounants and more importantly fantastic solicitors.
JUNE QTR KEY POINTS
ESTABLISHED HOUSE PRICES
Quarterly Changes
Preliminary estimates show the price index for established houses in Australia increased 3.1% in the June quarter 2006, compared with the movement of 1.1% in the March quarter 2006.
House prices rose in all cities: Perth (+11.9%), Darwin (+3.6%), Canberra (+2.6%), Adelaide (+2.3%), Brisbane (+2.1%), Melbourne (+2.0%), Hobart (+2.0%) and Sydney (+1.4%).
The movement in the established house price index between December quarter 2005 and March quarter 2006 has been revised from an estimated preliminary increase of 1.0% to an increase of 1.1%.Annual Changes (June quarter 2005 to June quarter 2006)
Figures straight from ABSOver the twelve months to June quarter 2006, preliminary estimates show that established house prices rose 6.4%.
Annually, house prices rose in Perth (+35.4%), Darwin (+18.7%), Hobart (+7.4%), Adelaide (+7.3%), Canberra (+6.7%), Melbourne (+5.5%) and Brisbane (+4.5%). House prices fell in Sydney by 0.5%.
The movement in the established house price index between March quarters 2005 and 2006 has been revised from an estimated preliminary rise of 3.6% to a rise of 3.8%.My point with this matter is take advatage of the negative press and use that to negotiate with!! Make a positive out of a negative.
Hello gmh454, where are did you get this statistic on growth?
Plan released to cope with Sydney’s population growth
New South Wales Premier Morris Iemma has announced a plan to manage Sydney’s growth over the next 25 years.The city’s population is expected to grow by more than one million people by 2031.
Called ‘City of cities: a plan for Sydney’s future’, Mr Iemma says the strategy is designed to ensure infrastructure is provided as new suburbs develop.
That is 40000 people per annum , with the average household numbers decreasing due to more people delaying relationships over work , or marriage break ups this increases the pressure.
For example if it 2.0 people per household we then require 20000 homes, but if that number drops to say 1.8 (no more peple than before) the requirement becomes 22222 . The March ANZ residential research shows building approvals in NSW is 30000 and demand at 46000 . This trend is only sustainable for a short period of time. But all of these experts couldnt be right with their figures.
Another interesting fact is that building approvals are seasonally adjusted at 5% , menaing they discount 5% for projects that never proceed . The deferred or abandoned projects are way above this at the moment , in the vicinity of 15%.
These idiots must be wrong , i will listen to you from now on gmh!!
Another option that is very effective for CGT is to purchase using an NZ trust , the trustee must also be an NZ enitity. There aren’t the same Foreign Investment restrictions and there is no CGT. But with most creative strategies there are pitfalls, company tax in NZ is 36% on profit. It is simple to setup for an Aussie.
Hi Redwing , thanks for the comment , i am know more confused than when i typed the response at midnight [biggrin]
The properties i noted in the Docklands is stock holdings in completed projects (not Mirvac).
Also , yes that is correct using that technique you would only need $8K .
You must of course ensure you then have the cashflow to service your investment . Which if you can save $200/wk you should be right , without knowing your financials .
Hi Redwing and DraconisV,
the vendor is not imposed with addittional tax as they pay based on amount recieved and the rebate is documented as a discount at settlement. Similiar to Harvey Norman cash rebates on air cons.
There is a clause added to the special conditions the sale is subject to acceptance of the rebate agreement. The rebate agreement , i can post a copy if you wish.
Also Redwing if you wish i will post you a copy of the software , thanks for your tips in regards to it , in the other post
cheers
