So what you are saying is there is no causal relationship between interest rates and changes in house prices. Intuitively, a reduction in interest rates, all other things being equal, would cause prices to rise. That is Economics 101

You set the bar higher with your first two myth busters Foundation, unfortunately this seems to be more semantics…[Read more]

Superman,

I didn’t intend to use the reference to spark a shares v property debate. Foundation’s intention was to try and debunk the myth of residential property doubling every 7-10 years and castigating those making similar statements.

Yes, I understand that the numbers are for 10 & 20 years respectively and they don’t include the 2004 runup…[Read more]

http://www.asx.com.au/about/pdf/TowersPerrin2003.pdf

Next edition of death by web reference!

So whose figures are right? Don’t ask me I have no idea…[confused2]

Have you quantified what that potential is?

Interesting to note how upset the permabulls become over this…real zealot type stuff

WayneL, don’t confuse passionate debating with your interesting description.

I would also take significant issue with any that I have said being categorised as ‘property zealot’ speak

Oh, and regarding adding ‘value’, I may simply be lazy, but I would rather…[Read more]

If you don’t think many average folk believe that ‘immigration is destroying house affordability’, and ‘we have 2 IPs in Sydney which can’t grow any more because of the green wedges, so they will go up in price because everybody wants to live in Sydney!” then I don’t think you’ve been spending enough time around the water cooler!

Maybe I don’t…[Read more]

Nowork, everyone’s magic bullet is different. Are you not convinced because you don’t understand?

There are many strategies that you could pursue, in fact some of them are listed on this site
https://www.propertyinvesting.com/strategies.

You have to decide what your comfortable in doing & what time you have to pursue these

F, you make the proposition that some of the myths being presented in the media, this and other forums. You are endeavouring to misrepresent and take out of context comments made to different questions and piece them together to make your case.

One of those is that population growth has fuelled the house price boom. Actually I don’t think that…[Read more]

F, so what are/have you investing/invested in?

OK. An explanation from the moderators would have been far more professional than simply deleting the threads…

Foundation, so what are your credentials to give out advice??

The improvements you mention irrespective of when you do them, as long as it the property is for investment, is claimable though depreciation only not as a direct expense.

You would commission a quantity surevyor to undertake a depreciation schedule for your property, and this would confirm the amounts you can claim over the depreciable asset…[Read more]

One Q, would that count as a capital loss, that we could offset against future gains?

My understanding is (others will confirm/contradict), is that you would need to settle ie own the asset and then sell, with the difference (if selling price is less) being able to be claimed as an offset against capital gains or future capital gains.

As you…[Read more]

Do we then take the same view with car dealers or individuals trying to sell their vehicles with the following statements –

Must sell this weekend
Owner going overseas!!

They are trying to sell and market it in a way which gets people interested. We all have a BS meter…..probably worth using it…..

Andy,

There is one who frequents this site that has a wealth of knowledge and contributions to many disucssions on this site – Depreciator

I have also used Washington Brown in Melbourne (although they are national) who were quite good as well.

1) Correct

2) Correct

3) Pay vendor tax on $120k… tax is calculated as per wording on dutiable value of the property at the date of sale

http://www.osr.nsw.gov.au/portal/page?_pageid=33,193927&_dad=portal&_schema=OSRPTLT

Woodsman,
While I am not overly familiar with Sydney either, I can’t imagine the situation would be fundamentally different to Melbourne where new build apartments are being valued (by qualified valuers) at 30%+ below purchase price.

You raise a good point which actually hasn’t been made explicit (or maybe I have been a bit slow to pick it…[Read more]

There seems to be two significant elements to the argument regarding the intro of the exit tax then…

Philiosophical/cultural belief that Australians should have the opportunity to own their own home and economic.

I don’t think taxes are the answer to the first point. There would be far more equitable and efficient ways in achieving this.

If…[Read more]

Andy,

Just some thoughts

By walking away, you crystallise your $50k loss, at least with keeping the property, whilst you may start behing the 8-ball, it will rise eventually.

Although not knowing Sydney prices (being from Melbourne), $10k per sqm does seem very expensive.

This response is not finance related….however, to alay your fears you…[Read more]

Brad1m can you add value to these properties through reno’s or sub-division…A more proactive approach is needed today to add value in a more balanced market…