theasxgorilla
Problem solved... next bubble.
- Joined
- 7 December 2006
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This is the bright side...hmmm. Please let us know if someone ever gives you the power to make important decisions!
I prefer to look on the bright side, out of every Joe Blow loser in this fiasco there will be a joe blow winner, ok the guy who got sucked in as the last aboard the scam loses, but not much, he didnt have much in the first place, probably not even a deposit, just a dream that never was.
Finally, someone provides a solid example!
You are right with everything you say here Fleeta. The tax,the purchase costs, the selling costs...all need to be considered in a property deal and all tend to conspire to screw you out of profits. All are reasons why many property investors say: never sell. Drawdown on the equity you've accumulated or collatoralise against another purchase, but never sell. Although, you've identified one of two ways to solve this problem. One, CGT exception for primary place of residence. Or two, hold for over 12 months and get a CGT discount of 50%.
Is anyone bothering to keep track of the tax brackets these days??? You now have to be earning over $150,000 AUD a year to get into the top tax bracket. Lets say you're a slightly above average Joe and you make $75k a year. If you sold an investment property after 12 months and made $100k cap gain you would pay a tax at a rate of 21% on your gains. If you were a bit of a high roller and managed to make $150k a year you'd still only pay 23.5%. None of these figures take into account the tax benefits of negative gearing or depreciation on investment properties, so you can assume on the sum of things these rates will go down even further.
Still seems like a lot of tax to pay on a deal? But over on other threads people are scrambling for solutions to their share market tax problems with answers like, "I'll incorporate and get the 30% company tax rate"...it's all relative...< 20% tax ain't that bad. Maybe you take a long holiday the year you sell your house in Australia...hmmm. Perhaps you can get your tax down to 15% that way, and a free holiday. Its not just about money accumulation, we've all got to live as the years pass by.
I only wonder which area of Melbourne 7kms from the CBD...and also notice you bought in Jan 04...prices were generally flat or falling in Melb into late 04, so if you bought then instead you would have fared better since you would have got a greater %age increase and have had less holding time hence less interest payments.
Imagine you said to someone they could live for rent free in their own house for 2.5 years...what kind of leg-up might that provide the average person in life?? "Hey, your rent is going to be taken care of for 2.5 years, do you think you can save $x for investing in the sharemarket or starting a business or going on an overseas holiday without having to come back with maxed-out credit cards???
Those days of the late 90's where you could buy a run down shack, slap on a coat of paint and sell for double are gone. But you don't need to hit home runs to make it worth it...looks like you just proved that property is still a viable way to get ahead. All you need is a further 10, 15 or perhaps 20 years of smart decisions and you'll be as wealthy as a baby boomer
ASX.G
PETER OVERTON: Just to show you how crazy it has all got, how tough it is to afford a home these days, this is the street I grew up in. In the late '60s, my parents bought their house for $15,000. That was about three times the average salary. Now, the average Australian house price is $420,000. That's nearly 10 times the average wage. But no matter how hard it gets, we're obsessed with owning our own home ”” whatever the cost.
A startling incongruence in the two parts of this statement.its only the start of the affordability crisis here in Aus, all being part of the world economy which aus entered seriously 6-7 years ago
I said incongruent, not absurd.hello,
absurd, no way
thankyou
robots
I am quite surprised for someone so actively debating about the trends of real estate prices on this thread is not actively following sales every week.How did the sales go this w/end Robots ? Break anymore records ?
..... probably just slightly more reliable sources than "60 minutes".
Quite a number of properties were sold on auction day Saturday, but many were after failing to reach reserve and had to be negotiated with either the highest vendor (or in two cases I know of in Nth Carlton, Melb) with whoever walked in the door after the sole bid in each was a vendor bid.It is readily available on newspapers, probably just slightly more reliable sources than "60 minutes".
REIV window dressing doesn't fool everyone, especially those of us in the industry
S&P Says Housing Prices Fell in 2Q by Steepest Rate Since Its Index Was Started in 1987
NEW YORK (AP) -- U.S. home prices fell 3.2 percent in the second quarter, the steepest rate of decline since Standard & Poor's began its nationwide housing index in 1987, the research group said Tuesday.
The decline in home prices around the nation shows no evidence of a market recovery anytime soon, one of the architects of the index said.
NC, please humour me for a moment.Our American cousins arnt having much luck with there surefire bricks n mortar Investments ....
Lets hope it doesnt happen here hey, after all when did we ever follow US market trends ?
NC, please humour me for a moment.
I am trying to understand your interest in this thread.
Do you own a house?
Do your friends or family own a house?
Do you own shares or units in any Australian real estate entities with interests anywhere?
Are you projecting a downtrend in the Australian the housing market?
Are we headed to a bottom?
Are you thinking of investing in the housing market when you think there is a bottom?
Are you trying to convince us to sell our houses and move into rental?
I am very confused as to your intent in this thread, other than to spell gloom and doom.
NC, please humour me for a moment.
Sure
I am trying to understand your interest in this thread.
ok
Do you own a house?
No
Do your friends or family own a house?
Yes
Do you own shares or units in any Australian real estate entities with interests anywhere?
Yes
Are you projecting a downtrend in the Australian the housing market?
Have i not been clear on that ? Yes
Are we headed to a bottom?
One day
Are you thinking of investing in the housing market when you think there is a bottom?
Maybe , Maybe not
Are you trying to convince us to sell our houses and move into rental?
No
I am very confused as to your intent in this thread, other than to spell gloom and doom.
For the most part im adding publicly available information about a segment of the financial market that imho is operating outside any Historical norms. I cant find anything positive to add in the overall picture, In individual markets i can though
Hope this humoured you
Something tells me Number cruncher spends a lot of time over at GHPCF. and trolling on other sites as well.
Dave
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