I am looking foreward to a correction in the market. I hope that the papers cotinue to tell everyone to stay away for real estate. More for me. I have seen three down turns and while everyone else is telling me how stupid I am staying in real estate I collect good properties. Bring on the doom
Bring on the doomIndeed, bring on the doom. We need a good old-fashioned recession to cleanse the economy of excesses of the real estate mania.
There should be some good buying opportunities a few years from now when everyone is talking about tech stocks again, or resources, or whatever the next fad is.
There should be some good buying opportunities a few years from now when everyone is talking about tech stocks again, or resources, or whatever the next fad is.
Yeah, cos everyone is going to drop their prices just so YOU can make money from real estate. Poor didums, did you miss the boat? Never mind, better luck next century.
Poor didums, did you miss the boat? Never mind, better luck next century.No didums, I didn’t miss any boats. I bought in 1993.
But did you buy in 1994, 1995, 1996, 1997, 1998, 1999, 2000, 2001 and 2002 and then sell in 2003 / 2004???
There is a strategy commonly used by medium to long-term share traders called ‘dollar cost averaging’. Why would you not also apply this to property investing?
Robert Bou-Hamdan
Mortgage AdviserThere is a strategy commonly used by medium to long-term share traders called ‘dollar cost averaging’.Would dollar cost averaging have worked with Nasdaq stocks if you’d started at the top of bubble? Of course not. Standard investment strategies break down in a bubble because the market is behaving irrationally.
All the fundamentals (rental yields, house-price-to-income ratios etc) point to the fact that the housing market is irrationally overvalued at the moment.
Originally posted by dmichie:Would dollar cost averaging have worked with Nasdaq stocks if you’d started at the top of bubble?
Of course it would have. It is also common sense to do proper research and due dilligence to purchase quality.
Robert Bou-Hamdan
Mortgage AdviserSo if you’d bought Microsoft, Intel and Cisco (all blue chip companies) every month from say April 2000 until April 2003 you’d be ahead?
Hi Robert. You made the comment that you are getting out of property? Is this because you feel you money could be working for you harder somewhere else…? Care to expand upon this any further?
a lot of the problems with the property market stem back to the whole negative gearing situation. if it were to be abolished the market could stabilise itself, with rents doubling over night and properties then being able to be analysed on their true merit and the resources required to fund them…not the size of the tax deduction. Australia is not a true capitalist society though and a judgement has been made to divert the common wealth into housing to provide shelter for the ‘battlers’. I would personally prefer a more open US style economy, but you have to play with the cards you are dealt, hence embrace the concept of wealth generation through property as it is what our society as whole has deemed to be of prime importance. Australian society is not perfect but on the whole it is pretty good. I fear our standard of living in total will continue to decline though as we attempt to even out the wealth – we are a compromise between what was the communist USSR and the modern day USA.
actually I will add that calls to devalue the currency so that farmers can produce a product that the world considers good value is a form of social manipulation in itself and panders to a minority interest group. Farmers this and farmers that – give me a break… it’s a business like any other and if you can’t produce and make a profit then get out.
http://www.megainvestments.com.au
Extensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
Originally posted by dmichie:So if you’d bought Microsoft, Intel and Cisco (all blue chip companies) every month from say April 2000 until April 2003 you’d be ahead?
I couldn’t tell you because I do not have the charts handy nor could I be bothered checking. But I can say that if that is all you bought, you should get out of share trading!
DIVERSIFICATION!
Robert Bou-Hamdan
Mortgage AdviserOriginally posted by BenedictJ:Hi Robert. You made the comment that you are getting out of property? Is this because you feel you money could be working for you harder somewhere else…? Care to expand upon this any further?
I am getting out of directly owning real property. That does not mean I will not hold property in other ways.
I have determined that there are much more profitable, and easier, ways to make money from property related investments without the need to always be researching, doing due dilligence, meeting with people, etc. It is also far more liquid and returns are guaranteed.
I have discussed these investments in another thread.
Robert Bou-Hamdan
Mortgage Advisera lot of the problems with the property market stem back to the whole negative gearing situation.Finally we agree on something. This outrageous rort should be abolished immediately!
What are your thoughts on personal income tax rates, company tax rates, capital gains tax rates, depreciation etc etc?
If you stop negative gearing, apart from the ass end falling out of the property market, you may as well cancel deductibility of business expenses. Talk about a step back to the dark ages!
Robert Bou-Hamdan
Mortgage Adviserring fenced negative gearing is more than fair IMO.
we are completely over taxed….. personal tax rates should be aligned with corp tax rates, CGT concessions are distorting the economy and should be abolished, the states need to be pulled into line and have stamp duty and other rubbish taxes removed. yeah – give me a day in the top seat!!
http://www.megainvestments.com.auExtensive list of ‘Off The Plan’ property available for sale in Perth.
John – 0419 198 856
I think it would be fair to reduce the top marginal rate to 30% and scrap all neg gearing benefits.
All gains and income taxed at the marginal rate.
personal tax rates should be aligned with corp tax rates, CGT concessions are distorting the economy and should be abolished, the states need to be pulled into line and have stamp duty and other rubbish taxes removed.I couldn’t agree more.
I think it would be fair to reduce the top marginal rate to 30% and scrap all neg gearing benefits.All gains and income taxed at the marginal rate.
I couldn’t agree more … although I doubt a 30% top marginal rate is affordable, more likely 35% across the board for company, personal and cap gains. Frankly, I don’t care what rate is as long as they are all the same, thereby removing the incentive to corporatise or capitalise person income.
If you stop negative gearing, apart from the ass end falling out of the property market…Ahh … but I see that as a good thing!
Talk about a step back to the dark ages!…If there’s one thing that belongs in the dark ages, its our current tax system.
I am confused with the last 4 posts, what r u guys focused on, can u give us a solution in stead of a problem.
Show me the money!!
I am confused with the last 4 posts, what r u guys focused on, can u give us a solution in stead of a problemI think what we’re attempting to do is fix the Australian tax system. There’s a surprising consensus between the bulls and bears — we all agree that company, capital gains and personal income tax should be around 30%, and that rorts and loopholes like negative gearing should be abolished.
dmichie, I certainly do NOT agree with that statement!!!
Why should company tax be the same as personal tax? Companies don’t use hospitals, welfare, etc…
Abolishing negative gearing is like abolishing deductibility of business expenses.
Your theory would cripple the country.
Robert Bou-Hamdan
Mortgage Adviser
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