The building industry is already healthy. There really is no need to throw more federal money away into it.
Imo i think its absolutely ridiculous that we have to entice people with grants etc to purchase a home to live in. What an epic waste.
The future of Australian property prices
- Thread starter Joe Blow
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The building industry is already healthy. There really is no need to throw more federal money away into it.
Imo i think its absolutely ridiculous that we have to entice people with grants etc to purchase a home to live in. What an epic waste.
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Sure, but let's only subsidise it when it becomes a problem.
ie the margins are still good, so why do we subsidise it?
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The building industry is healthy? LOL. Nope ...... apprenticeships are at an all time low for tradespeople. Builders are reporting massive drops in turnover and some larger firms are shedding staff as well as closing their doors Australia wide. Building stats are through the floor (no pun intended) with approx 15% declinal. (PRIVATE HOME CONSTRUCTION)
The only subsidies I know of is the FHBG which is more if you build rather than purchase established. Encourages FHB to take the plunge but also no stamp duty applicable either. Down side is the months of waiting during construction. The building company does not get the subsidy ????? The purchaser does to assist with finance/deposit requirements.
Building company I contracted to had 54 houses under construction 3 years ago. They have 8 now. Things are just whistling along.
Now if you read what Agentm posted and what I agreed to was this:- Change the FHB to be the same for established as well as construction AND funnelled the negative gearing investor finance into new homes only. This would help IMO.
The only subsidies I know of is the FHBG which is more if you build rather than purchase established. Encourages FHB to take the plunge but also no stamp duty applicable either. Down side is the months of waiting during construction. The building company does not get the subsidy ????? The purchaser does to assist with finance/deposit requirements.
Building company I contracted to had 54 houses under construction 3 years ago. They have 8 now. Things are just whistling along.
Now if you read what Agentm posted and what I agreed to was this:- Change the FHB to be the same for established as well as construction AND funnelled the negative gearing investor finance into new homes only. This would help IMO.
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no, the building industry does not get the 7K FHVB, they get a leveraged $35k +
Have they dropped prices considerably? Have land developers started to decrease prices?
The stalemate is there, either the workers will move to the mines, or the building companies will find ways of attracting clients.
Just as they did before (you are an old timer
, you should remember this)Then again, I am for scrapping negative gearing on all investments, and I think a FHVB for new homes only is a much better idea than across the board (mainly because a lack of the FHVB on existing properties would keep a lid on bubbles)
Yes, it's perfectly healthy. I also work in the building industry, and its fine. Yes, things arnt as busy as they have been in the past, but the building industry is cyclical and we have been coming down from the 'peak' imo in this country, and atm its just moving with the slightly diminished demand. Theres no need to hit panic stations because "omgz there arnt as many homes being built as last year".
My question is, why provide incentives to boost demand for new buildings ? Wont this simply serve to bring forward demand and create further problems down the road ... or inflate the level of housing stock beyond what demand neccecitates ? Or simply be a stupendous waste of capital and labour that could be better directed elsewhere ?
As far as im aware, the FHB grant is the same atm whether your building a new home or buying an existing ... i dont see what your point here is.
In fact during the GFC the 21000 FHB grant was ONLY applicable to new dwellings .... how did that work out ?
Maybe it's because there **** and just a terrible company ?
Our company has PLENTY of work, but were in the commercial/industrial space.
Wysiwyg
Everyone wants money
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The consumer is saying (via mortgage defaults and lack of buying) they simply can't furnish a loan what with increasing interest rates, ever increasing market prices and the common denominator ...
As I posted on another thread, you have to be pulling in well over 1k per week to be able to pay off a mortgage and have some semblance of an existence outside of work. At the average gross you will pay tax of $14,827.11 (ATO calc. including Medicare Levy). So basic without allowable deductions to reduce taxable income the take home is around $51766.89 per year or less than 1k per week.
A mortgage over 25 years at the mean mortgage interest rates of *8.8% for an old standard house and land for 350k would cost $666.27 per week leaving $333 to live off. $330 is a long stretch paying for fuel, food, electricity, telephone and ever increasing council rates.
Reason confirmed.
*
As I posted on another thread, you have to be pulling in well over 1k per week to be able to pay off a mortgage and have some semblance of an existence outside of work. At the average gross you will pay tax of $14,827.11 (ATO calc. including Medicare Levy). So basic without allowable deductions to reduce taxable income the take home is around $51766.89 per year or less than 1k per week.
A mortgage over 25 years at the mean mortgage interest rates of *8.8% for an old standard house and land for 350k would cost $666.27 per week leaving $333 to live off. $330 is a long stretch paying for fuel, food, electricity, telephone and ever increasing council rates.
Reason confirmed.
*
Wysiwyg
Everyone wants money
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Also y'all may notice that if employed in half the sectors below, their egos (first home flash 500k types) will be watching t.v. for a long while because they got stuff all left after the mortgage payments and basic living expenses to do anything.
Price you pay I suppose for biting off more than you can chew. Oh but don't we "look" wealthy.
Price you pay I suppose for biting off more than you can chew.
Oh but don't we "look" wealthy. Attachments
Might help the building industry but won't help FHBs. If you are an FHB the worse the buidling industry gets the better I would think (assuming you're not employed directly or indirectly in that industry).
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Not sure where the information is coming from but I am of the understanding it is this with the FHOG:-
The announcement from the Australian Government specified the following:
For contracts made between 14 October 2008 and 30 September 2009 the boost provides for an:
Extra $7,000 for buying an established home
Extra $14,000 for buying or building a new home
http://www.dtf.wa.gov.au/cms/content.aspx?id=344
Yes it did go to 21k for construction and 14k for established but has been reversed now. Stamp Duty concessions are also to be factored in for FHB.
This is for Western Austrlalia. I also wrote in capital letters that my post related to PRIVATE RESIDENTIAL HOMES and not the commercial industry.
http://hia.com.au/hia/news/article/...ition a Concern for Residential Building.aspx
“Put simply, government and industry efforts to increase the number of dwellings being built needs to be more effective at increasing skilled tradespeople numbers if there is to be sufficient resources to build the homes that are required in the future”, said Nick Proud.
This is the third cycle I have personally been involved with.
Alot of misinformation out there. I get the building stats from the council who approves them. Used to be 5 pages long. Now it is not even 3/4 of a page and this includes owner builders etc.
Here is the link from the ABS as well :- http://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0
Builders and developers are starting to offer "incentives" like landscape packages and furniture and airconditioning and fencing etc ad infinitum. Prices are stalling and will soon be trending down also as builders drop margins to keep turnover going.
Only my opinion of course. The stats do seem to be backing it up though.
The announcement from the Australian Government specified the following:
For contracts made between 14 October 2008 and 30 September 2009 the boost provides for an:
Extra $7,000 for buying an established home
Extra $14,000 for buying or building a new home
http://www.dtf.wa.gov.au/cms/content.aspx?id=344
Yes it did go to 21k for construction and 14k for established but has been reversed now. Stamp Duty concessions are also to be factored in for FHB.
This is for Western Austrlalia. I also wrote in capital letters that my post related to PRIVATE RESIDENTIAL HOMES and not the commercial industry.
http://hia.com.au/hia/news/article/...ition a Concern for Residential Building.aspx
“Put simply, government and industry efforts to increase the number of dwellings being built needs to be more effective at increasing skilled tradespeople numbers if there is to be sufficient resources to build the homes that are required in the future”, said Nick Proud.
This is the third cycle I have personally been involved with.
Alot of misinformation out there. I get the building stats from the council who approves them. Used to be 5 pages long. Now it is not even 3/4 of a page and this includes owner builders etc.
Here is the link from the ABS as well :- http://www.abs.gov.au/ausstats/abs@.nsf/mf/8731.0
Builders and developers are starting to offer "incentives" like landscape packages and furniture and airconditioning and fencing etc ad infinitum. Prices are stalling and will soon be trending down also as builders drop margins to keep turnover going.
Only my opinion of course. The stats do seem to be backing it up though.
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Quick question for all you property moguls, would you buy an investment property outright and use the returns in rent for income, or would you get a loan and use the returns on income to just pay the interest of on the loan, whilst aiming to profit from an increased property worth for the property in the future?
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If you had cash to pay outright for an investment property I can think of better things to do with the money in the short term.
Hypothetically I would get an Interest Only loan but this would depend on the LOCATION of the property, the COST of the property, the LEASE agreement including it's terms as well as the INDIVIDUAL CIRCUMSTANCES of the purchaser. PLUS a stack of other information required prior to making ANY decisions of investing into property.
*Please note this does not constitute advice in any way shape or form and DYOR*
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If you had cash to pay outright for an investment property I can think of better things to do with the money in the short term.
Hypothetically I would get an Interest Only loan but this would depend on the LOCATION of the property, the COST of the property, the LEASE agreement including it's terms as well as the INDIVIDUAL CIRCUMSTANCES of the purchaser. PLUS a stack of other information required prior to making ANY decisions of investing into property.
*Please note this does not constitute advice in any way shape or form and DYOR*
Lets say hypothetically the location of the property was on the outskirts of Perth/Brisbane, the cost of the property was between 240k-320k, the lease was for 1-5 years at $350-500 per week and the purchaser had between 400k-700k.
What other things would you do if you had the money to buy a property outright?
Note that I am not using this advice nor is it intended for anyone else to use as advice.
These are purely hypothetical situations.
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Hypothetically I would place 20% deposit on a property worth 320k ($64,000) and get me an IO loan for 10 years. $256,000 x 8.17% = $21,000 per annum. Obtaining $500 per week rent is up there but seeing how this is hypothetical I will play along for comedy purposes only. $500 per week x 52 weeks = $26,000 per annum. Positively geared for 5k a year? Sounds too good to be true. Spend approx another 15k on stamp duty and settlement fees and insurances etc and put a fork in you ... you are done.
Wait 10 years and it could be your home is now worth the same as what you paid for it or it could be more (LIke I said it depends on the LOCATION) and not just the suburb.
This should leave you with approx $400k in your hand to play with. 200k into fixed interest at 6.17% = $12k in the kitty every year and stick the rest into bluechip shares if you want to play it safe (marginally). Depends on your appetite for risk I would suggest.
Any one else got some good ideas?
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Hypothetically I would place 20% deposit on a property worth 320k ($64,000) and get me an IO loan for 10 years. $256,000 x 8.17% = $21,000 per annum. Obtaining $500 per week rent is up there but seeing how this is hypothetical I will play along for comedy purposes only. $500 per week x 52 weeks = $26,000 per annum. Positively geared for 5k a year? Sounds too good to be true. Spend approx another 15k on stamp duty and settlement fees and insurances etc and put a fork in you ... you are done.
Wait 10 years and it could be your home is now worth the same as what you paid for it or it could be more (LIke I said it depends on the LOCATION) and not just the suburb.
This should leave you with approx $400k in your hand to play with. 200k into fixed interest at 6.17% = $12k in the kitty every year and stick the rest into bluechip shares if you want to play it safe (marginally). Depends on your appetite for risk I would suggest.
Any one else got some good ideas?
Would you say that a fixed interest rate of 7% per annum is too volatile in this current market?How about 8%?9%?10%? just would like your opinion, will not be taking this for advice, will simply prompt me to do more research.
P.S. What do you believe are good indications that a property is in a quality location?Neighborhood crime rates?Close to shops?A park nearby?
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Read what I wrote. You can get 8.17% IO for 10 years fixed with ANZ
How is that volatile for a 10 year strategy???????????????? Can drop to 7.79% per annum if you pay yearly in advance.
Do the research on the propety market yourself. Fresh out of ideas here.
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Dear god please stop yelling, I didnt mean on the IO I meant on the fixed interest return on the 200k.
Sorry if I'm pissing you off, just a kid out of highschool with absolutely no idea about the property market.
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Ok kid out of high school. .. I will stop yelling when you stop asking leading queations. DEAL?
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Hmmm tough decision, but im going to have to lock in no deal there.
http://www.abs.gov.au/AUSSTATS/abs@.nsf/ProductsbyReleaseDate/A50B6B8CF85F0474CA25722900179E3F?OpenDocumenthttp://
Does anyone else think that the housing prices in and around Perth are set to soar?
In part due to cashed out miners looking for a place to settle down and young families brought in by the mining boom?
You find a property for 240-320k with a rental return of $350-$500. In St Kilda on the weekend my mate sold an apartment for $505k that was returning $370 a week gross and about $298 net. Different state I know but maybe the VIC bubble is bigger than elsewhere, hypothetically speaking of course
