YAWN! Yes even i know that behind our little neighbours in the NZ housing affordability is the worst in the world makes you wonder whats happening to this great country of ours. Anyway my best advice would be not to listen to the rantings of someone who doesnt even live in Australia.
A wise investor will make profits in any market, so lets all strive to be the best investor we can be.
well said RVP
The down fall in all of this was and has been easy CREDIT … 100 percent loans for home owners and investment properties … thats what got the USA in the s..t banks and brokers greedy to make commissions and now the problem is a long term depression … sure property prices will rise again but not before there is lots of blood on the streets … yes there are always opportunities and gurus selling their stuff trying to upsell the market and keep it positive like Metropole Properties … just get these these guys to sign a letter of understanding and advise and personally guarantee any shortfall in case the market turns against their claims … remember these and many others are giving advise to the unsophisticated investors … great times ahead if you are educated and smart … lots of great comments in the thread and very good opinions …
Message ahead is to tread carefully, prepare for opportunities and seize the day … good luck and best wishes to you all reading this thread … D
Queensland Budget lifts stamp duty threshold for first homebuyers
Article June 03, 2008 02:30pmFIRST homebuyers will be one of the big winners with a Robin Hood strategy of taking from the rich to fund stamp duty relief including improved concessions.
The State Government will lift the threshold at which stamp duty will apply for first home owners from $320,000 to $500,000 by September 1.
According to Queensland Treasurer Andrew Fraser the savings will be worth $9800 on a home worth $500,000, well above the current median price for a house in Brisbane of $425,000.
Other resident homebuyers will benefit with an increase in the level at which stamp duty concessions apply from $320,000 to $350,000. The saving will be about $750.
Mr Fraser said the result of the improved concession was that homebuyers would pay $7175 less than buyers who do not receive the concession.
However wealthier home buyers will end up paying more with increases in stamp duty for homes above $1,000,000. A $2 million home will now cost another $7500 in stamp duty.
Land tax will also be reduced with the amount payable at the $600,000 threshold reduced from $1200 to $500, benfitting about 15,000 taxpayers.
Companies and absentee land owners will also benefit with a reduction in the tax payable falling from $2250 to $1450.
However, because land values have increased so much in recent years, the Government will still earn an additional $175 million in revenue from the tax next financial year.
Mr Fraser said Queensland had enjoyed a decade of prosperity, but not everyone had benefitted.
"Scores of younger Queenslanders have been locked out of the property market simply because it has risen beyond their reach," he said.
After hitting the mining industry with big increases in coal royalties that will triple the amount it earns from the industry, the Government will hand back a fraction to business through payroll tax reform.
Companies with a payroll of between $1 million and $5 million will receive concessions costing about $20 million and affecting about 6800 businesses.
However, the Government expects continued job growth to increase its payroll tax collection by 9 per cent.
Mortgage duty will also be finally abolished from July 1 after a phased decrease since 2005-06.
The abolition of the tax will be six months earlier than previously announced.
bardon wrote:Queensland Budget lifts stamp duty threshold for first homebuyers
In other words, the price of homes in that bracket will increase due to short supply. What a wankful effort.
bardon wrote:Queensland Budget lifts stamp duty threshold for first homebuyers
How many first home buyers can buy a property at 400.000 at 9% interest rates ?
It's just a way to get the last few jump in a crashing market in order for the problem-people to be able ot sell their house ( all be it at a loss or not ). I see this as a way to bail out a few people of their mortgage stress.
"This is your last chance to find a buyer, because we give that buyer money to buy your property."- kind of messageI have heard that Rudd is planning to limit the amount of credit that banks can lend as mortgage will be controlled by law. Something like 4 times gross wages. Don't say noone warned you. ( Even if the warning came from Europe )
I have heard that Rudd is planning to limit the amount of credit that banks can lend as mortgage will be controlled by law. Something like 4 times gross wages. Don't say noone warned you. ( Even if the warning came from Europe )
Regulation isn't the answer, who told you that anyway ?
Dont worry the central banks control Australia,If banks cant lend they will go out of business, do you think that is what Rudd wants, do you think he would be permitted to do that ?
bardon wrote:Regulation isn't the answer, who told you that anyway ?Dont worry the central banks control Australia,If banks cant lend they will go out of business, do you think that is what Rudd wants, do you think he would be permitted to do that ?
I don't say banks can't lend. I say banks can't lend unrealistic amounts of money anymore. I just say the government is already placing more restrictions on banks and the limit of their lending.
The central banks don't control Australia. The only thing they control now is a big bubble of non-existant equity. When the bubble bursts, some banks will go bust, some will barely stand. The only reason your banks haven't been eaten up by the bigger Chinese / European or USA banks is because Rudd protects them from being taken over. In the world Economy, your banks mean nothing, they are smalltime players.
That being said, in Australia they do mean a lot, the 4 pillars system was meant to protect the country from collapse once the credit crisis reaches Australia, it it will. The whole credit crisis occurred because too high mortgages were given to people who could not pay them. On top of that, the banks themselves now can't use as much cash anymore, and thus are now limiting themselves in what they lend out.
I'm sure if you go to the bank now and ask for a mortgage, you won't get the same limit as you could get in 2007. Just go try it out. I don't even expect a confirmation since I *know* this to be true.
It's not coming, it's already here !
Greed is not the answer, if my Grandad who was one of the diggers only knew that hard working families are finding it almost impossible to put a roof over their heads he would be turning over in his grave.
What a sad mess, money money money eh.
Scamp wrote:The central banks don't control Australia. The only thing they control now is a big bubble of non-existant equity. When the bubble bursts, some banks will go bust, some will barely stand. The only reason your banks haven't been eaten up by the bigger Chinese / European or USA banks is because Rudd protects them from being taken over. In the world Economy, your banks mean nothing, they are smalltime players.
That being said, in Australia they do mean a lot, the 4 pillars system was meant to protect the country from collapse once the credit crisis reaches Australia, it it will. The whole credit crisis occurred because too high mortgages were given to people who could not pay them. On top of that, the banks themselves now can't use as much cash anymore, and thus are now limiting themselves in what they lend out.
I'm sure if you go to the bank now and ask for a mortgage, you won't get the same limit as you could get in 2007. Just go try it out. I don't even expect a confirmation since I *know* this to be true.
It's not coming, it's already here !
I certainly do think that the Reserve Bank is part of the Central Bank cartel and its owenrship structure is very similar to the BOE. The last PM to challenge the Central Bank way was Gough Whitlam and the Queen sacked him so Rudd knows fine well his limitations there. When central banking was introduced into ozzie the depression followed this is what they do.
Some would even argue that central banks purposely pushed credit to further ensalve the people and then buy up their assets under value they done it before in 1929.
People like Kevin Rudd have no role in what the elitist want at the very best he is a puppet but I will say that he is not part of the scam as say his elitist predescessor was.
The main banking, political and economic warfare decisions will be being considered right now at the annual Bilderberg meeting, would be good to know who form oz is attending if anyone knows. The meeja have been told not to report on it as usual.
Have an emergency meeting with a new client next week. Found out they have a major cash flow problem.
The cause a major neg gearing thrust by the directors in 2006/2007 that has left them bleeding out the comp profit to fund their personal debt with nothing left to pay the tax.
Bad advice, not carefully implemented by people one of which has Macquarie lo doc debt at 10.50% on 1.2M debt with the neg gearing being almost nil as it has landed almost 110% on his residence.
Comp making a profit close to 1/2M facing insolvency – been round a while and this was a whole new scenario for me.
Also some of the major players in the corpoarate world are selling assets in a buyers market, makes no sense unless they are in major trouble or believe that the buyers market is going to be oh so much better in the months to come.
gmh454 :
Thanks for the update. It's nothing new to me, it's something that comes and goes. The last auction results are in , and there's a clearance rate of 11%. We're in a very special market nowadays :
We're in a buyer market, and there's no buyers.gmh, can you elaborate on what will happen to someone who is in the kind of trouble you stated ?
Will they strike a deal with the creditors , will they be blacklisted anywhere, will they be exempt from taxes ?Scamp, as of Tuesday I think I will be billing them and walking away, new client, has previous bad advisors or themselves to blame and I don’t feel like being the messenger everyone wants to shoot.
But best advice would be to try and do a phoenix with the company and close it down as fast as they can. Cash is nil, (they took it) tax bills are around 120K plus all sorts of problems with neg director loans accounts loan accounts they can be pursued personally, so wages need to be regigged, etc etc. Their persoanl equity will have diasppeared in the last 6 mnths with banks dropping loan to value ratios and the books telling a very worrying storey so can’t see them finding the funds to tip back in, maybe a relative with deep pockets will be found.
The liquidation due to the fudging will be very expensive, and in the end the liquidator may turn and put them personally to the sword (notify the ATO of the phoenix attempt and ASIC may get advice to not them act as directors for a few years.
But as I said that will be someone elses problem.
Scamp as an accountant who does business (not a a tax return factory) my headaches come from clients operating under expectations exceeding reality. Their problems become ours as they seem to need to blame someone for El Dorado disappearing into the distance. If you can fix their expectations then we have happy clients and a pleasant work environment.
Scamp wrote:Regulation isn't the answer, who told you that anyway ?Dont worry the central banks control Australia,If banks cant lend they will go out of business, do you think that is what Rudd wants, do you think he would be permitted to do that ?
I don't say banks can't lend. I say banks can't lend unrealistic amounts of money anymore. I just say the government is already placing more restrictions on banks and the limit of their lending.
The central banks don't control Australia. The only thing they control now is a big bubble of non-existant equity. When the bubble bursts, some banks will go bust, some will barely stand. The only reason your banks haven't been eaten up by the bigger Chinese / European or USA banks is because Rudd protects them from being taken over. In the world Economy, your banks mean nothing, they are smalltime players.
That being said, in Australia they do mean a lot, the 4 pillars system was meant to protect the country from collapse once the credit crisis reaches Australia, it it will. The whole credit crisis occurred because too high mortgages were given to people who could not pay them. On top of that, the banks themselves now can't use as much cash anymore, and thus are now limiting themselves in what they lend out.
I'm sure if you go to the bank now and ask for a mortgage, you won't get the same limit as you could get in 2007. Just go try it out. I don't even expect a confirmation since I *know* this to be true.
It's not coming, it's already here !
[/quote]I will give you a confirmation, I was at my bank yesterday and I can borrow at least as much as I could in 2007.
I dont know what the "it" you refer to is but I am glad your excited its here.
BTW ,again, just to counter more bland sweeping assertions from scamp, NAB (not my bank BTW) ranks in the top 50 banks in the world (of 3000 worth evaluating) as they are similar in size the others will be in a similar ballpark but out of the top 50 (need to be a subscriber to delve further). Not too shabby for a small country. Source bankersalmanac.com.
The first signs of the BIG BURST:
fresh news…
http://www.news.com.au/dailytelegraph/story/0,22049,23822393-5001021,00.html
You feel helpless, when shame hits
Article from:June 07, 2008 12:00am
THEY are losing their home – and at times they've lost their sense of self worth. But when it all gets too hard and they feel like depression might take hold, Jason and Paula Smith admit it's their blue-eyed boy Lucas who makes the difference – not interest rates.
"He's the only thing that keeps us going,'' Mrs Smith says.
"I was afraid we would suffer depression from all this. It's hard. You feel helpless, like you've lost everything.
"But how can you not help but cheer up when you look into those eyes and see him smile, see him so happy.''
He can just say "Dad-a'' and point and smile at the "car'', but at only 22-months those few words are more powerful than any relief the Reserve Bank could dish out by keeping interest rates on hold.
No short reprieve by RBA Governor Glenn Stevens, or even an unlikely cut in coming months, can turn the tide of loss the Smith family have already fallen into.
Like thousands more residents across Sydney are finding out, it's too late.
Their Blairmount home, north of Campbelltown, has already been placed on the market for just a little more than the $360,000 they paid in 2006.
They'd be happy to break even.
When they moved in with Mr Smith's parents under a 50 per cent split of the $300,000 mortgage, the new father felt he was able to provide what he never had when he was a child moving from town to town in England – a stable family home.
But it wasn't long before interest rates began the upward climb and the Smith family began their downward spiral. The delivery driver's hours were cut from six 12-hour days on an award to as little as three days on an individual contract.
When it became clear they couldn't keep up the payments, they tried selling for the first time in September last year but received just one offer below the "breaking even'' mark, forcing them to take it off the market.
When Mr Smith's sister said she could move in and take over their half of the mortgage, the family moved in with Mrs Smith's parents at Ruse, on the other side of Campbelltown.
"To tell you the truth I felt quite shameful not being able to provide a roof over my family's head,'' he said.
"That home was our dream. I wanted to give Lucas something I never had.''
The few mortgage free months have at least given them some time to save for a bond on a rental home they plan to move into at Warragamba.
But Mr Smith's sister will soon move interstate with her partner, meaning Mr and Mrs Smith will have to take up their half of the mortgage again until the property is sold.
They don't like to dwell on how long they can keep paying the mortgage before losing their bond and what little savings they have left.
"We have each other, that's enough,'' Mrs Smith said.
http://www.news.com.au/adelaidenow/story/0,22606,23825046-5005962,00.html
June 06, 2008 11:53pm
BANKS and other mortgage lenders have been accused of using bullying tactics and quick threats of court action against NSW homeowners who are behind on their mortgage repayments.
According to data obtained by News Limited under Freedom of Information laws, 4000 writs of possession were issued in the NSW Supreme Court last year.
Of those, 1580 homeowners lost their homes.
The worst affected areas were Blacktown, with 50 repossessions, and Auburn with 29.
The Salvation Army has accused some lenders of bullying struggling mortgage holders, saying court action is being taken too quickly.
"To have the sheriff on the doorstep is quite an intimidating and shaming experience for people," Salvos financial counselling manager Tony Devlin said.
"We're dealing with a lot of people on the brink of losing their homes and it's an extremely anxious and stressful time.
"Some people do even get to the point of having suicidal thoughts. Families break down because of these things."
But the Australian Bankers Association defended the big banks, saying large institutions write 80 per cent of the loans but are only responsible for 30 per cent of the writs.
The problem lay with smaller lenders, the association's chief executive David Bell said.
"There is unfortunately a category of lenders out there which are not banks, which are often called predatory lenders, who will make loans banks wouldn't touch," he said.
oil now at $139, serious implications for humanity
No you are crazy-everbody KNOWS that property prices only go up, especially after a record bubble and unsustainable debt levels combined with never before seen levels of cost of living increase
Keep blue sky dreamin fellas…My lads in Amerca say the shit is hitting the fan big time over there. We are witness to the largest financial collapse in modern times and we may just get dragged under with it yet.
blogs wrote:No you are crazy-everbody KNOWS that property prices only go up, especially after a record bubble and unsustainable debt levels combined with never before seen levels of cost of living increase Keep blue sky dreamin fellas…don't you have anything new or inteligent to say?
It's becoming more and more clear that investing in real-estate today is pushing people into hell.
I can only hope that this post came early enough to warn of even 1 prospective buyer. Then it would have been all worth it.
Keep blue sky dreamin fellas…
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