The future of Australian property prices

[Trembling Hand]

I really fail to see why it's relevant,

Yep Im sure you don't.

Actually, a simple kitchen or bathroom renovation, on an older style unit, even if it is only cosmetic can substantially increase the rent received per week.

If you don't understand how tax depreciation works in relation to fixtures and equipment & building how can you comment about its cost to maintain rental return or improve rental return?

 

[Starcraftmazter]

If you don't understand how tax depreciation works in relation to fixtures and equipment & building how can you comment about its cost to maintain rental return or improve rental return?

Because tax has nothing to do with this.

The point is that RE is a depreciating asset. Renovations do not increase yields so much as maintain the quality of the premises. This is about the mentality of investors.

 

[Ves]

Because tax has nothing to do with this.

The point is that RE is a depreciating asset. Renovations do not increase yields so much as maintain the quality of the premises. This is about the mentality of investors.

yes it does. Nominal cost less your marginal tax rate will be the actual cost of the asset if you allow for depreciation. Of course it differs if it is classified as a capital works item, because it is written off over a longer period, but will still affect cash flow. If you generate more rent over its useful life, than your adjusted actual cost you are ahead.

 

[doctorj]

Today, Genworth Financial announced a delay to the planned IPO of its Australian mortgage insurance business:

This new timeframe primarily reflects recent business performance in Australia.* For the 2012 first quarter, the company expects to report elevated loss experience in Australia as lenders accelerated the processing of later-stage delinquencies from prior years through to foreclosure and claim at a higher rate and severity than expected, particularly in coastal areas of Queensland that experienced natural catastrophes and regional economic slowdowns and among certain groups of small business owners and self-employed borrowers. First quarter experience is anticipated to result in a modest first quarter loss in the Australian MI business.

http://www.prnewswire.com/news-rele...an-mortgage-insurance-business-147815625.html

 

[Trembling Hand]

Because tax has nothing to do with this.

The point is that RE is a depreciating asset. Renovations do not increase yields so much as maintain the quality of the premises. This is about the mentality of investors.

So again you do not know how depreciation affects your rental yield?


Carry on. Tell us some more..........

 

[young-gun]

I've seen that in action, multi millionaires made as sure as night follows day and it's safe and easy as long as you can afford to service any loans.

Crashes/recesssions mean nothing, just hold and forget aboiut it , it will always look after you in the end.

has** looked after people to the end...in the past.

 

[Tink]

You cant see the future young gun, you are speculating what you think is going to happen in the next few years.

I agree that houses have stagnated, and with unemployment going up, prices will probably fall abit further, but I know quite a few that have bought in the last 12 months, be it to live in or invest.

They seem happy with their choices.

 

[DB008]

You cant see the future young gun, you are speculating what you think is going to happen in the next few years.

I agree that houses have stagnated, and with unemployment going up, prices will probably fall abit further, but I know quite a few that have bought in the last 12 months, be it to live in or invest.

They seem happy with their choices.

+1
I know a few people who have purchased with a 18-24 month settlement date (to live in or IP).

 

[moXJO]

Vic is probably the worst place to invest at the moment so I am told.

 

[Glen48]

Buying a property is not an investment it will be once prices have crashed but that will be many years away, when China's Yuan is the reserve currency and back by Gold then it should turn around.
China wants to buy 5,000 tons of Gold over the next 5 yrs. China is buying all the gold it can and not allowing any exporting from China they are also buying up gold mining companies here and over seas.

Wikipedia:
Investment has different meanings in finance and economics. Finance investment is putting money into something with the expectation of gain, that upon thorough analysis, has a high degree of security for the principal amount, as well as security of return, within an expected period of time.[1] In contrast putting money into something with an expectation of gain without thorough analysis, without security of principal, and without security of return is speculation or gambling.

 

[young-gun]

You cant see the future young gun, you are speculating what you think is going to happen in the next few years.

I agree that houses have stagnated, and with unemployment going up, prices will probably fall abit further, but I know quite a few that have bought in the last 12 months, be it to live in or invest.

They seem happy with their choices.

Well aware that I can't see into the future, but are you forgetting the no one else is able to either? past performance is absolutely no indication of the future. Just because people have done well in the past does not mean the trend is going to continue. old habits need to be thrown out the window, as changes occur that no one in the past or present have ever experienced. the world economy recovering in any way shape or form to me at the moment is mathematically impossible. at least for the next decade.

i prefer not to ignore the blatantly obvious, that is, the world is in trouble, and i dont believe any form of investment is a good investment at the moment(for me that is, others can gamble if they choose, there is still opportunity). especially not those that are in a bubble.

 

[Starcraftmazter]

You cant see the future young gun, you are speculating what you think is going to happen in the next few years.

It's no speculation; it's common sense.

 

[Glen48]

Young gun think you have jumped the gun:
JP Morgan has more on its balance in CDS than the whorl world economy and the other 3 banks are not far behind, No one know what's going on in Japan but they may have to evacuate Toyota 35 m people think of the logistics there 1.5 time OZ population, USA is shoot pigs because they have the wrong hair colour while people are living is flood water drains starving, USA iis pay 2.5 m interest a second, California is introducing a law to ban smoking in in the back yard, Greece has 60% un employed in places, Spain's debt is twice.

 

[Starcraftmazter]

The Property Predicament - by Robert Shiller
Why property price rises are a bad thing, and the flawed mentality behind it.
http://www.ft.com/intl/cms/s/2/1cc90a5c-87a8-11e1-8a47-00144feab49a.html#axzz1snp2BVdY

 

[Miss Hale]

Did anyone else see 7.30 on the ABC tonight in Victoria? In an item about the upcoming Victorian budget they highlighted the fact that revenue from stamp duty is down $366 million. If that doesn't inndicate that there's been a downturn in real estate sales in Victoria I don't know what does.

 

[MrBurns]

Did anyone else see 7.30 on the ABC tonight in Victoria? In an item about the upcoming Victorian budget they highlighted the fact that revenue from stamp duty is down $366 million. If that doesn't inndicate that there's been a downturn in real estate sales in Victoria I don't know what does.

Victoria will be in recession very soon if it isnt already, house prices are falling now, the ABC news headed off with more job loses one in a transport company closing down where management said no ones buying anything, hang on tight.

 

[Miss Hale]

Victoria will be in recession very soon if it isnt already, house prices are falling now, the ABC news headed off with more job loses one in a transport company closing down where management said no ones buying anything, hang on tight.

I'm battening down the hatches

 

[MrBurns]

I'm battening down the hatches

It'll be a chilly winter

 

[Glen48]

http://topdocumentaryfilms.com/real-estate-4-ransom/
This will help Mr. B your blood will boil.

 

[Starcraftmazter]

http://topdocumentaryfilms.com/real-estate-4-ransom/
This will help Mr. B your blood will boil.

That looks incredibly interesting - is there a way to download it?