The future of Australian property prices

[Glen48]

Its all supply and demand, why rent a Industrial prop. if you don't have sales?
In a depression Water, Food, shelter, surviving rises to the top and will out price any property.

Pm's & cash will have more power than any asset you can't sell.
Wait until Xmas and see where it is all going, once China et al refuse to fund USA which could happen any day things will change over night.

Gold and Silver are suppose to drop to Gold about $1,500 soon back the truck up and buy.

 

[Miss Hale]

Swan says no changes planned to negative gearing arragements

http://www.theaustralian.com.au/nat...negative-gearing/story-fn59nsif-1226321644363

I wonder if the Libs would have the cohones to do something about it.

 

[MrBurns]

Swan says no changes planned to negative gearing arragements

http://www.theaustralian.com.au/nat...negative-gearing/story-fn59nsif-1226321644363

I wonder if the Libs would have the cohones to do something about it.

No one wants to touch that one, political reasons take precedence over what is right.

 

[young-gun]

Question: What's everyone's thought on the Industrial market? I believe the RE and Commercial market are heading downwards but not too sure on Industrial property

i don't know a great deal about it. i recently looked at prices of renting a 150-200sqm shed with a tiny office attached and almost fell off my chair when i saw prices of renting and purchasing. perhaps this was due to my lack of knowledge in the area and it was very much standard.

i would assume that with businesses struggling and culling employees that would be a sign of downsizing. meaning less space required whether it be for staff, or stock, or office space, whatever it may be. which brings you back to supply and demand, so i would say they would be falling also.

 

[young-gun]

No one wants to touch that one, political reasons take precedence over what is right.

theyre well aware of the potential of a crash, hence throwing so much money at FHO. they wouldnt dare do anything that might see investors start selling up.

 

[McLovin]

What does that say about current values?

Can only be supported by low interest rates?

I believe that was what Minsky was getting at. The whole stability leads to instability. No recession for a generation and interest rates that have been trending down for 20+ years would certainly lend itself to risk-taking behaviour.

 

[tech/a]

i don't know a great deal about it. i recently looked at prices of renting a 150-200sqm shed with a tiny office attached and almost fell off my chair when i saw prices of renting and purchasing. perhaps this was due to my lack of knowledge in the area and it was very much standard.

i would assume that with businesses struggling and culling employees that would be a sign of downsizing. meaning less space required whether it be for staff, or stock, or office space, whatever it may be. which brings you back to supply and demand, so i would say they would be falling also.

I havea couple for 1 acre lots with sheds.
1 houses my own business that I rent off of my Superfund.
The other has 3/350 square Meter sheds on it eith parking.
Also in my super and currently 2 rented 1 vacant.

I like industrial as they don't release a lot of land for industrial.
I can get the same rent on a 350 squ meter shed as I can on a house.
3 sheds and land cost about the same as house.
Tenants pay all out goings. Land and buildings currently flat.
Rents are ok to get particularly smaller sheds.

Great generators of passive income.

 

[Vixs]

I havea couple for 1 acre lots with sheds.
1 houses my own business that I rent off of my Superfund.The other has 3/350 square Meter sheds on it eith parking.
Also in my super and currently 2 rented 1 vacant.

I like industrial as they don't release a lot of land for industrial.
I can get the same rent on a 350 squ meter shed as I can on a house.
3 sheds and land cost about the same as house.
Tenants pay all out goings. Land and buildings currently flat.
Rents are ok to get particularly smaller sheds.

Great generators of passive income.

Tech/a do you have any compliance issues with renting from your own super fund? Is it simply a matter of paying rent at market rate?

 

[Klogg]

Tech/a do you have any compliance issues with renting from your own super fund? Is it simply a matter of paying rent at market rate?

I can't answer for tech/a and how he's structured his own financial matters, but my accountant has advised me that in I can't rent a property that my SMSF holds, as I shouldn't see a benefit from my superannuation until I start drawing from it.

I'm sure there are ways around it, but I can't really give any solid financial advice.

 

[DocK]

I can't answer for tech/a and how he's structured his own financial matters, but my accountant has advised me that in I can't rent a property that my SMSF holds, as I shouldn't see a benefit from my superannuation until I start drawing from it.

I'm sure there are ways around it, but I can't really give any solid financial advice.

Also don't wish to answer for Tech/A - but my business also rents a factory from our smsf. This is quite common, and in our case was the primary reason for rolling our supers into a smsf. You can't rent residential property from your smsf, but the rules are different for a business renting commercial property. Must be market rent with a formal lease agreement in place, just as if renting from an unrelated landlord.

 

[tech/a]

Also don't wish to answer for Tech/A - but my business also rents a factory from our smsf. This is quite common, and in our case was the primary reason for rolling our supers into a smsf. You can't rent residential property from your smsf, but the rules are different for a business renting commercial property. Must be market rent with a formal lease agreement in place, just as if renting from an unrelated landlord.

Same for myself.
The key here is its a commercial property.

 

[Vixs]

Same for myself.
The key here is its a commercial property.

Thanks, the seperation rules were pretty clear to me but if the property capital growth is strong enough I guess it would justfity paying market rent - I mean, if you have to have a business premises anyway, seems like a reasonable way to do it.

 

[Dowdy]

Also don't wish to answer for Tech/A - but my business also rents a factory from our smsf. This is quite common, and in our case was the primary reason for rolling our supers into a smsf. You can't rent residential property from your smsf, but the rules are different for a business renting commercial property. Must be market rent with a formal lease agreement in place, just as if renting from an unrelated landlord.

That sound interesting.

Is the reason for doing that to claim more expenses on the tax return and pay less tax at the end of the financial year?

 

[Starcraftmazter]

http://finance.ninemsn.com.au/newsbusiness/8448289/negative-gearing-debate-needed-robertson

Since when do state governments concern themselves with federal tax law?

There have been countless respectable organisations, economists, public advocacy groups, etc calling for the removal of negative gearing - and the toxic FHOG, but the federal government never will because they are a bunch of corrupt dirt-bags.

It is the demise of our once great economy.

Question: What's everyone's thought on the Industrial market? I believe the RE and Commercial market are heading downwards but not too sure on Industrial property

Honestly - what sorts of industries do you see prospering in Australia? We have a FIRE economy, let's face it. There's no reason why industrial land will go up in price, especially given the decline of manufacturing.

I wonder if the Libs would have the cohones to do something about it.

Considering they are the corrupt scumbags who put it there in the first place - I highly doubt it.

The best way to get rid of negative gearing IMO is to make it a big issue for the Greens, who will then have the power to force ALP to get rid of it - providing they are again necessary for forming government.

 

[Glen48]

That's the trouble with our system some dangles a carrot and we vote for them, then the carrot becomes two and then a bunch each party trying to buy votes and once some thing is in place it can't be rescinded or the party risk's be booted out or not be elected.
Like USA now if you are not a christian, pro guns and anti Abortion forget about running.
IF they did get rid of NG then they would replace it with some thing else and here is Gillard and Co doing any thing to hold on to power, then I read were some one from HSU is suspended on full pay, boy is this that hurting him he is probably stacking shelves at Coles at night now as well.

 

[DocK]

That sound interesting.

Is the reason for doing that to claim more expenses on the tax return and pay less tax at the end of the financial year?

My husband and I operate a business that requires factory space. If we didn't rent from our smsf, we'd need to rent from an unrelated landlord or purchase a factory with our own funds. We both had super in industry funds from prior employment that was not performing brilliantly so followed our accountant's advice to roll it into a smsf and use it to purchase a factory. The end result is that our business still pays rent on a factory but it is into our own smsf which then invests the rent into shares, fixed int etc. Our company claims the rent as an expense to reduce tax at 30% and our smsf has to pay tax on the income at 15% tax. After doing this for about 10 years I don't believe we'd have achieved anywhere near the growth we've had in our smsf total value (even with the recent decline in factory valn's in our area) if we'd simply left our super where it was. SGC contributions on our salaries (paid by our company) also go into our smsf for investment.

 

[Klogg]

The best way to get rid of negative gearing IMO is to make it a big issue for the Greens, who will then have the power to force ALP to get rid of it - providing they are again necessary for forming government.

It all makes sense now...

 

[Starcraftmazter]

One for the "housing shortage" conspiracy theorist nutters out there.




Enjoy

 

[cynic]

What and show you ----
Why would he ----

I agree.

Infact With or without leverage Id BET (And Ill bet $500 to Joe if Im wrong---as its a far more worthy cause) he will blow up (fail spectacularly) over a 12 mth period.

Look forward to it.

Are you sure that you want to do that Tech/A?

He is an engineer you know!?

And not just any engineer - he's actually so good at maths that he's deduced/extrapolated himself to be better than 99% of all engineers (even the one's he's never actually met!).

P.S. If there's one thing that I've found out about the markets, it's their dependability in the provision of expensive reeducation for those participants with overinflated opinions regarding their own capability.

 

[trainspotter]

Greetings from Portugal. Easy to see why the property prices have dropped over here. Spent a few days in the Algarve. The tourist capital of Portugal. Currently in Estoril which is showing signs of a pulse. Not going to go into details but it is pretty obvious that Australia is NOTHING like the P.I.G.S in the RE world DYOR

Went down to Tarifa in the South of Spain. Even worse down there. Unfinished projects everywhere and rundown houses right next door to magnificent holiday Villas (empty this time of the year)

Anyhoooooo ...... Try travelling out of your own backyard to see the real world and get an idea of why we are different !!!!!!