House prices to keep rising for years

[MrBurns]

Yes that is true but I have weighed this up. What would you do with 400K? Put it in cash 4%? Put it in shares + or - 50% (big risk) or plug it into good old fashioned bricks and mortar where the rent comes in week after week and the price might stay the same for a while but keeps going up in the long term? For now I will stay a property investor, who knows what I might do later.

Thats fair enough and whats more you dont have to pay stamp duty because you already own it

 

[Bill M]

hello,

well done Bill M, good work man and hope you enjoy the new location

thankyou
doctor robots

The new place is great, nice and quite neighbourhood. The lake is a 15 minute walk away, I tell I've never seen so many black swans.... I thought they were once in a life time share market disasters till I moved up here. I'm not counting my chickens just yet but this just does us fine so far...:

 

[Macquack]

Congratulations but dont forget the income is less, Council and Water rates, agents fees, maintenance, insurance and vacancy.

You can add Land Tax to that list.

 

[Bill M]

Thats fair enough and whats more you dont have to pay stamp duty because you already own it

Yeah but I had to pay it to the blood suckers for the new joint.... $10,800

Oh well we got to pay for those pot holed roads... Hah that's a new thread, the NSW GOVT!!!

 

[Bill M]

You can add Land Tax to that list.

I thought that kicked in at $1 Million? I got well under that with both properties combined, am I wrong?

 

[Macquack]

I thought that kicked in at $1 Million? I got well under that with both properties combined, am I wrong?

Land Tax (NSW)
Rates and thresholds
Rates 2009
Land tax is calculated on the combined value of all the taxable land you own. The land tax threshold for 2009 is $368,000. Your land tax assessment is calculated on the combined value of all the taxable land you own above the threshold. The rate of tax is $100 plus 1.6 per cent of the land value between the threshold and the premium rate threshold.

http://www.osr.nsw.gov.au/taxes/land/rates/

PPOR not included.
Let me guess, are you refering to Tuggerah Lake?

 

[awg]

Yeah but I had to pay it to the blood suckers for the new joint.... $10,800

Oh well we got to pay for those pot holed roads... Hah that's a new thread, the NSW GOVT!!!

roads on the Central Coast..hehehehe

The F3 Newcastle to Sydney Expressway is blocked way too many times per year

Also re the prior post, Land tax is per person, so if in joint names, seperate thresholds apply

 

[Bill M]

Land Tax (NSW)
Rates and thresholds
Rates 2009
Land tax is calculated on the combined value of all the taxable land you own. The land tax threshold for 2009 is $368,000. Your land tax assessment is calculated on the combined value of all the taxable land you own above the threshold. The rate of tax is $100 plus 1.6 per cent of the land value between the threshold and the premium rate threshold.

http://www.osr.nsw.gov.au/taxes/land/rates/

PPOR not included.
Let me guess, are you refering to Tuggerah Lake?

Thanks mate, I shouldn't have been so lazy and looked it up myself. OK so Central Coast is exempt but how would they value a block of 38 units land value in Sydney? In any case I wouldn't get anymore than 400k for my unit so the land value at a stab in the dark guess couldn't be any more than 200k so I am well under.

The lake, close, it is Budgewoi lake actually.:walker:

 

[drsmith]

Land Tax (NSW)
Rates and thresholds
Rates 2009
Land tax is calculated on the combined value of all the taxable land you own. The land tax threshold for 2009 is $368,000. Your land tax assessment is calculated on the combined value of all the taxable land you own above the threshold. The rate of tax is $100 plus 1.6 per cent of the land value between the threshold and the premium rate threshold.

http://www.osr.nsw.gov.au/taxes/land/rates/

PPOR not included.

I've always been of the view that negative gearing should be wound back but at the same time this sort of nonsense should also be done away with.

 

[Bill M]

I've always been of the view that negative gearing should be wound back but at the same time this sort of nonsense should also be done away with.

Would you also apply that the share market investors? I mean some investors who borrowed money for stocks are also losing now (negative gearing) should they also be denied negative gearing tax breaks?

 

[drsmith]

I'm not saying negative gearing should be done away with but deductions for wage and salary earners should at least be restricted to, say a maximum 125% of the investment's income as an example. This is regardless of the investment type.

The point of my post above was not so much at negative gearing but at capital taxes such as land tax by the NSW government as shown above. If this were removed and savings from limitations on negative gearing handed to state governments then thats one less reliance of government budgets on inflated property prices.

Tax reform 1.01.

 

[Macquack]

OK so Central Coast is exempt but how would they value a block of 38 units land value in Sydney?

You can do a free search of your land value here (for NSW)
https://lpi-online.lpi.nsw.gov.au/cgi-bin/lpis/menu.pl

Unit in a block of 38 units on the northern beaches worth about $400,000 - have to be Dee Why?

 

[robots]

hello,

good evening fellow property owners and general public, hope the day has been enjoyable

Bill M, normally the rates notice has a land value component on it, check that out

dont forget Kissfm.com.au tonite for beats and rhymes with the hip hopping show on shortly

yes ban negative gearing for share, cfd's, forex, options, all of those investment classes which provide nothing for the economy

thankyou
Doctor Robots

 

[MrBurns]

yes ban negative gearing for share, cfd's, forex, options, all of those investment classes which provide nothing for the economy

thankyou
Doctor Robots

How does inflating house prices help the economy ?

 

[robots]

hello,

listen mate I dont know who you are or what you up to but i suggest you start by re-reading the numerous posts from some of the masters of property here at ASF

anything from Robots, Beej, Kincella, Gonefishin'

use the search function

thankyou
doctor robots

 

[nunthewiser]

LOL

Chicken parma , slab of ruskies and a half priced block of land from a "distressed" sale settles on the 25th................

Give it another couple of rate rises and there will be plenty more to share around too bruthha,s.

Sunshine and lollipops for everyone.

 

[MrBurns]

hello,
listen mate I dont know who you are or what you up to but i suggest you start by re-reading the numerous posts from some of the masters of property here at ASF
anything from Robots, Beej, Kincella, Gonefishin'
use the search function
thankyou
doctor robots

Just as I thought you haven't got a clue ROFL

 

[MrBurns]

hello,

masters of property here at ASF


doctor robots

Thanks for the laugh, I almost wet myself at that one

 

[nunthewiser]

Many homeowners upped debt on low rates More than 75 per cent of homeowners took advantage of low interest rates to add to their mortgage loan or take on other forms of debt, a new survey has found.



More than 75 per cent of homeowners took advantage of low interest rates to add to their mortgage loan or take on other forms of debt, a new survey has found.

The poll by mortgage broker, Loan Market Group, found that 44 per cent of homeowners increased their home loan while interest rates were at their lowest in nearly 50 years.

One in 10 added to their credit card debt, slightly fewer took on a personal loan, and the same number made a purchase on interest-free terms, while seven per cent borrowed from their relatives.

Just 23 per cent were prudent in not taking on any more credit.

The increased debt burdens were of concern now the Reserve Bank of Australia (RBA) was raising the cash rate, Loan Market Group chief operating officer Dean Rushton said.

"Many Australians have borrowed more while the RBA reduced interest rates to near record lows of 3.0 per cent in response to the global financial crisis," he said releasing the survey on Wednesday.

"Hundreds of thousands of Australians are in greater debt than they were a year ago so any increase in interest rates will hurt."

The central bank raised the cash rate for a second month in a row on Tuesday, lifting the cash to 3.5 per cent.

Economists are divided over whether the RBA will raise rates again in December, but they anticipate further moves in 2010 towards a cash rate of five per cent.

Still, the survey of 600 respondents found people without a mortgage were more careful with their budgets, with 39 per cent saying they took on no new debt when rates were in the trough.

However, 22 per cent borrowed from relatives, 16 per cent added to their credit card debt, 13 per cent took on a personal loan and 10 per cent made an interest-free purchase.

http://www.thebull.com.au/articles_detail.php?id=7121

Intresting stuff this intrest rate readings

Everything will be ok though, no one out there would be overextended, would they?

 

[jbocker]

How does inflating house prices help the economy ?

Now you got me thinking Mr Burns, how does inflating anything help the economy?

I suppose inflated house prices means more stamp duty (albeit taxes are a crap way to 'help' the economy and then only the govts)