Forum Replies Created
- jamo.d wrote:
How does a duplex in a back yard help housing affordability when you can buy the original house for $200,000, wait 12 months and sell the same house on 1/2 a block for $180,000 and the duplex's for $220,000 – $250,000 per unit with not much more than a slab of concrete to park your car on and three strands of string for a clothes line?.
J.D
well housing affordabilty is a supply and demand issue,…. so the more dwellings that get built in an area will make that area more affordable than it otherwise would be if the dwelling were not built,….
say if demand was steady and you increased the number of house's the price would decrease,… if you reduced the number of houses then the price would increase.
what you have described is that the housing price in your area has been mainly steady,…. so all these developments is probally what has been maintaining that balance by absorbing the population growth,…. if you maintained the population growth but kept the amount of dwelling the same then you would see affordabilty steadily decrease…
Another atribute of the nimby is denial,….
jamo.d wrote:HiI live in the Hunter Valley about an hour from Newcastle, all the blocks in the area used to have 100 year old houses on 1/4 acre blocks, it seems that the latest development trend in the area is to buy an old house and either rip it down and build 4 units or 2 sets of duplexes or divide the block leaving the old house at the front and building a duplex at the back.
Thank You
J.D
I don't really think you have any right to stop this sort of development,….
It's only natural that over time areas that are dominated with 1/4 acre blocks will have higher desity zones encroaching on them,…
forget what jon said about becoming a "nimby" you are a "NIMBY" ( Not In My Back Yard ),… nimby's typically complain about housing affordability in their area but do not want increased development,….. they complain about lack of infrastructure but don't want the infrastructure built near them,… They don't want climate change but they don't want to give up driving their cars,….
I think you are stuck with your situation,…. deal with it,….. you can't stop progress.
I really hope no one here gives you any hints as to what buttons to push to slow this development because it is people like you that cause so many headaches for people that are just trying to get the job done, 1/4 acre blocks are history,
NorwegianBlue wrote:"Tysonboss1" wrote:What are you trying to say with that link?I claimed that there were more known oil reserves now than in the 1970s.
You claimed that was untrue.
Hence the link.
Sure, oil production will decrease, but meh. We'll adapt, improvise and overcome – we always do. Oil wasn't a resource until people found a way to use it.
Having re-read your original post I have relised that I was wrong,… I thought that you said we were discovering more oil today hence my reply to that topic.
Having said that though,… I would not trust the figures of world oil reserves especially any figures coming out of opec there is just to much personal gain assoicated with over stating estimates.
Opec countries have limits to what % of there reserves can be pumped each year so they are most likly using very optimistic figures so as to allow them to pump more,…
and public companies will also use optimistic figures so as to increase share holder support,….
But again the the main thing is not the reserves in the ground it is the rate of production,….the last half of our oil will not be gushing at the speed of our first half.
duckster wrote:If there is no oil there will be no war as every war machine runs on oil.
I read recently in the Age that Singapore was experimenting with a tidal power station and using the power generated to convert water into hydrogen to run their cars on.
I think that a certain country that can spend over a trillion dollars on one war will spend over a trillion dollars on developing an alternative fuel source to keep their war machines running.
If Fusion (Hydrogen – Sun type reaction) can be contained as this is all that is preventing a large scale reactor from being developed we will have more energy than all the fossil fuel already used from 1 cubic metre of sea water.
The heat is so hot that magnetic fields are trying to be developed to hold the reaction in.
Everything else melts.
http://physicsworld.com/cws/article/print/1258I suspect oil companies have purchased an invention developed in 1979 that converts water to hydrogen with very little electrical power and uses it on demand rather than storing it. It was developed and mentioned in Electronics Australia in 1979.
http://physicsworld.com/cws/article/print/1258Hydrogen as a fuel is a long way off,…. It is probally one of the least apropriate technologies.
F,
Thats excactly my thoughts on the issue,. I am not saying that we can expect oil supply to stop.
I am just saying that the production will not met the demand,… The only thing that the average guy on the street will notice is the steady rise of oil based fuel costs and transportation year by year.
and hopefully Increasly the use of alternatives will offset the major production declines,…however for this to happen it will take a major change in thinking and alot of investment dollars,…. I have already set up an investment trust where I am investing using the dollar cost averageing method in investments in industries I feel will benefit from the coming energy transition,…
People with their head in the sand on this issue will surely miss the boat on some great investment opportunites.
foundation wrote:Hi Tysonboss. Don't forget that correlation does not imply causation and that even if a causal relationship exists, its direction of influence may be unknown. So, could it be that world demand for oil slowed sharply when prices passed a certain threshold? A casual observation also shows that the sudden escalation in price occurred several years before the drop in production. This certainly weakens the case for a causal relationship!
F. [cowboy2]
G'day F,
Well whats your take on the Oil situation,…. do you think it'll be business as usual forever and a day,
The green line is the oil price and the black line is production levels,… note the sharp rise in price when global oil poduction droped by 5%,……NorwegianBlue wrote:Quote:Tysonboss1 wrote: Where to do get your facts…
Here's one reference, there are plenty of others if you don't trust BP.
What are you trying to say with that link,….
I have absoulutly no doubt that there is in excess of 30 Years reserves in the ground but it will not be business as usual till the day the last drop is sucked out,…. the issue is not the amount of reserves in the ground but the rate of production that is the drama,….
as oil fields age the rate they can produce oil drops,… because when a field is young 100% pure crude bubbles out the ground as it gets older less and less crude is pumped slowly it drops to 95%crude 5% water,…. 90%crude 10% water,… 85%crude 15% water etc.etc,…
as I said earlier about 50% of the global production is coming from wells that have been pumped for the last 5 decades alot of which are already producing 50% water,….
say over 10years production slowed at some of the worlds key oil fields ( the giants we found in the sixties) by 30%,…. we could easily see global production drop by 10%, but if we follow todays trends in the growth of energy demand we will need to be producing about 50% more oil by then,.. not 10% less, so there would be a 60% production shortage.
Using the example of the 70's oil crisis which was a short term made made production shortage where oil production was decrease by 5% and world oil price rose by 800% what do you think the impact of a 60% production shortage would be
bardon wrote:[Or could this be an example of innovation and adaption by a leading edge company with its eye on the global ball ?
Yes you can sugar coat things like that I guess,….Offcourse it doesn't change the facts behind the reasons they are beening forced to adapt, and make such drastic changes
it doesn't change the fact that they are now having to pay almost 3 times as much per barrel than they were 3 years ago,…. fo oil the costs them much more in shipping costs to get to market,… and they are having to spend millions of dollars on plant upgrades to refine this fuel and they had to get special permission from the EPA because this heavy oil releases allot more pollution during the refining process.so who pays for this extra cost,…. us…..
seriously what are you saying,… do you honestly believe we can continue to indefinatly increase production into the future on a resource that is already in a mature state due to decline.
bardon wrote:This is good more demand for our gas reserves
There are much better ways of using that amount of natural gas,
Plus it would make every vechicle using petrel, release 6 times more carbon emissions,… so I don't think oil shale is the cure all,
hbbehrendorff wrote:There are companys now that are producing oil out of sand, yes that's right, Mining sand and turning it into oil.There is a lot of sand on the planet..
they can't go create oil from just any sand,…..What you are talking about is "oil sands, Tar sands and oil shale Mining",…… yes it is possible however it turns the production of oil into a mining operation requiring massive open cut mines which is devasting to the environment,
not to mention the fact that to produce 1 barrel of oil they use the amount of natural gas equal to 6 barrels of oil, it is not a cheap or easy way to get oil.
The Maths behind our future energy needs is very worrying,…. if we follow our current trend just to maintain prices at todays levels over the next 7-10 years we will have to increase global annual production by 50% which is clearly impossible.
and we will have to discover about 300 billion barrels of oil reserves just to replace the feilds we deplete between now and then, to put that in perspective the US is celebrating the find of an oil field in the golf of mexico that is estimated to be between 3 and 15 billion barrels, even at the high end of the estimate, it only equals 6months of global supply,…
over 50% of todays production comes from the mamoth fields discoverd nearly 5 decades ago,…. some of which are well into decline pumping upto 50% water.
Caltex Australia actually made history earlier this year when they had to ship oil all the way from west Africa to sydney because there was no avaiable supply anywhere closer, and to refine it they had to make modifications to the refinery because it was much heavier oil than the light sweet crude we have used in the past.
bardon wrote:I also work in the oil and gas industry and its awash with money and opportunity. Last year worked with Exxon Mobil and they certainly have long term plans so don't expect anything to stop flowing in the short term.There is a flip side to peak oil which is that it is a ploy to create scarcity and drive prices up, OPEC don't produce more because that's what keeps prices high.
Firstly opec are not silly,…. they know high prices creates interest and demand for alternatives and they do not want to kill there golden goose, so in the past have always increased out put to met demand,… this time prices are higher than they have ever been but they still refuse to lift production,….
and in answer to your first piont,… offcoase oil isn't going to stop flowing,… but our ability to produce ever incresing amounts of it is not going to be possible,…. If the big oil companies believed that oil production was going to continue to rise into the future as demand continues to rise surly they would be building more refineries,….
However there has not been an oil refinery built in the USA since 1976,…. the simple reason is that the oil companies know that production of oil can not really be lifted much more so the existing refineries will be enough,…. mean while demand is still growing at an ever increasing rate,……. so the only way is up for the price of fuel.
rentboy wrote:Extraction technology is also improving we can now get it from deeper in the ground and deeper under oceans and also under ice fields. Oil companies are doing well.
.it's a double edged sword though,… the better we are at pumping out the oil the faster we run out,
when oil companies are spending millions of dollars exploring for oil feilds 2Km under water and in the artic circle it is a sure fire sign we are running out and remember it's not running out that is scary it's the steady decline of global production that is going to cause drama,….. as seen in the 70's a drop in production of 5% cause the price to jump by 800%.
Check the thread below and scroll down for some interesting graphs on what we may be facing.
https://www.propertyinvesting.com/forums/community/opinionated/4322125
Also if you haven't noticed already oil is trading at 3 times the price it was 3 years ago, and opec say's it "won't" raise production which is really code for "can't" raise production.
NorwegianBlue wrote:The world has more known oil reserves now than in the 1970s..
Where do you get your facts from,…. this statement is simply untrue we have never discovered more oil than we did in 1968,
even with all or modern technolgy, we are burning about 2 times more oil than we are discovering,
Terryw wrote:As for moving existing properties into a trust, it can still work out worthwhile if you have a large home loan and a small loan on the ivnestment property with heaps of equity. Selling to a trust will effectively allow you to convert non-deductible debt into deductible debt. You then need to compare the interest and tax savings with what the transfer costs will be.good point
J Moloney wrote:Again with the 100% offset acount do you only make the normal repayment required or do you pay more than the set repayment amount??
Cheers Janieonce the offset account is linked to your loan you will still have to make your normal payments onto the loan whether that be priciple and interest or interest only, but you have the option of storing any extra funds in the offset account to save interest.
If you still want to feel like you are paying your loan off you can transfer your payments to interest only, which will reduce your payments but instead of spending that extra money place the differance between what your payments are now and your new interst only payment into your offset each month,… also any money that you don't need for a week or so you can place in there to save interest.
As I said earlier it is a great way to get all the benefits of paying off your loan, but because you haven't actually paid anything off your priciple you can withdraw the funds and use it on a personal item suchas your own home and your loan is still classed as tax deductable,…. but if you actually paid the money directly off the priciple then withdrew money from the loan and spent it on a personal item then the portion of the loan used on the personal item would no longer be tax deductable.
J Moloney wrote:Hi all, Thanks for all the feedback it's much appreciated. I have lots more questions to be answered though!!
Firstly what does PPOR stand for? Personal Place Of Residance??
and once you have a loan on Principle & interest can you change it to Interest only?
How does an offset account work, can it be set up with any lender??
I'm currently with NAB are the good or bad?
I have many more questions but i'll ask the rest later.
Cheers JanieYES PPOR stands for primary place of residence or personal place of residence,…
Yes you should be able to switch the loan to Interest only quite easily,..
An interest offset account is basically an account that is linked to your home loan and any funds in the offset account saves you interest on your homeloan,…. eg,. If your loan is $200,000 and you have $5000.00 in your offset account you will only be getting charged interest on $195,000 rather than the full $200,000 for every day the money is in your offset account…… most banks have offset accounts NAB definatly does,…. make sure you can get a 100% offset account though, as that means the money will offset 100% of the interest as some products only offset a portion of the interest.
None of the banks are either good or bad,… the main thing is to find the finance products that best suit your needs, and will lend you the amount you need a good rate.
J Moloney wrote:Hi I'm Janie I'm 20yo. i am really new to the property investment game. I bought my first home November last year with the aid of the first home owners grant with the intention to turn the property into a rental. My decision to by a property so early has stemmed from fear of 'missing the boat' rising interest rates etc. So i had little or no time to fully understend what i was doing & still i have no idea what property investing is all about. Can anyone help me absorb & understand it all or suggest good texts, websites or industry proffessionals that can help?also I was reading this forum the reply by TYSONBOSS1
"you should never pay a single $ off your invesment loans if you have any other non tax deductable debt(car, boat, credit card)."
Can you explain this a little more? i'm interested to know why.
Thanks, JanieCongratulations….. It's great that you have started early I bought my first house about 5.5years ago when I was 20 also,…
as I was saying earlier it is best not to pay of your investments till after you have paid of your family home because interest payments on your investments are tax deductable where as personal assets aren't,…..
so if you have 2 loans one for a car and one for your investment,… even if the were both 8% interest the fact that you can claim the interest back on the investment loan means that after tax the 8% interest is really probally about 4.5% but the car loan will still be 8% so it is best to pay of all the personal debt first,
Even if you have no personal debt what I would recomend is placing your investment loan on interest only with an offset account an any funds you would normally be paying off the loan accumulate in the off set account,.. that way in 5 years when you want to purchase your own home you can redraw the money from the offset account for your deposit so you have maintained you total amount of tax deductable loan, and minimisised the amount of non tax deuctable home loan.
timbo. wrote:[
Do you see any advantages (or disadvantages) of having your PPOR in the trust structure?
ie, If you decide to change your PPOR, you have the option of adding the current one to your portfolio within a the trust structure.I wouldn't put your own home in the trust,… you would have to talk to an accountant because if the home is in the trust you may have to pay capital gains tax when you trade up,…
Another thing to think about is why you want to put it in a trust in the first place,…. the reason most people use investment structures is to legally separate there investment assets from personal assetts,… picture each structure as beening a fire wall separating your assets,… if there is a fire (bankrupcies, litigation etc) anything in that structure where the fire started is under threat,… so as you bulid your portfoilio you may want to have upto 3 structures which you invest under.
