Inflation

[farmerge]

Bad news about your destroyed house. I hope the perps were caught and suitably punished.

Definitely got a few years in the house of Detention, and the local assistant bailiff whom I had befriended became a prison guard where they were housed. Man did h give them heaps.

 

[over9k]

Yeah, believe me on this, if you ever have a bad tenant you will very quickly learn A: just how utterly impotent the legal system is and B: why dirtbag landlords just send a couple of guys over to deal with such a problem.

It's the same thing with problem neighbours and anything else you care to mention really - vanishingly few of them genuinely do not know/see anything wrong with what they are doing, the vast, overwhelming majority of them know full well that what they are doing is wrong, they just don't care. So you have to *force* them to stop, if you take my drift.

Hence my previous neighbours' dogs story.

 

[farmerge]

Yeah, believe me on this, if you ever have a bad tenant you will very quickly learn A: just how utterly impotent the legal system is and B: why dirtbag landlords just send a couple of guys over to deal with such a problem.

It's the same thing with problem neighbours and anything else you care to mention really - vanishingly few of them genuinely do not know/see anything wrong with what they are doing, the vast, overwhelming majority of them know full well that what they are doing is wrong, they just don't care. So you have to *force* them to stop, if you take my drift.

Hence my previous neighbours' dogs story.

We were told by the local court's magistrate that 9 months was the standard time to evict.
The wheels of the Court turn ever so slowly.
As you have suggested there re other means to move them on.

 

[Smurf1976]

Amen to having tenants, not any more for us.

The problem with that one in my view is a broken system.

Best explained by pointing out that a self-made multi-millionaire would actually find it difficult to rent even a cheap run down house.

First thing the RE agent will want is details of employment and recent payslips.

Next thing they'll want is a rental referee.

Our self-made rich person most likely can't provide either of those.

End result is the house gets rented to someone who's going to throw parties every week and trash it meanwhile the conservative rich person concludes their only option is to find a place to buy ASAP and in the meantime stay in a hotel.

Then the property owner complains about a run of bad tenants and gives up on the whole idea.

Like many things in society, the system is fundamentally flawed and rejects the very people you'd rationally want.

 

[Dona Ferentes]

We were told by the local court magistrate that 9 months was the standard time to evict. The wheels of the Court turn ever so slowly.

Feeling no abiding need* to stay on message in the Inflation topic or respect Forum Decorum* ... we had a neighbour, a tenant, who was evicted.

From the leased car being repossessed, to the realisation the Sheikh of Dubai wasn't going to pay him A$5mill, he managed to stay in his $1000 a week apartment for 20 weeks until the Sherriff evicted. Process being served ... the owner had to employ an agency, the notice was given, the ultimata delivered, then the assembled weight of the law moved. Twenty minutes to pack a garbage bag of essentials, then a week to arrange a removalist with just 1 hour to get things out. He didn't do that, so owner had to then arrange a removalists to empty the place AND store it for up to a month allowing for possible claim .... He didn't, so things went to Salvos, tip.

Out of pocket $30k??

*as some poster blocks me, and I don't see this thread narrative, hence there no compunction to stay on topic, and I'll do a FMG. If said blocker somehow reads this, please don't worry. You're a fool, I'm a winner by not having to read your nonsense.

 

[sptrawler]

We were told by the local court's magistrate that 9 months was the standard time to evict.
The wheels of the Court turn ever so slowly.
As you have suggested there re other means to move them on.

My last rental it wasn't a brilliant house, but was on a triplex block, the house was fibro and the old couple I bought it of had built it years ago.
Centre passage three bedrooms to the left and a large lounge and large kitchen diner on the right, clean and tidy.
So I rented it to a young couple and as I wasn't that invested in the house I said they could have it for 1/3 of the going rate, as long as they looked after it.
Well long story short the walls were painted with gothic spray painted pictures, I said enough is enough time to go, ended up very badly even after eviction notice they didn't leave, they levered off the bailifs lock and bypassed the electricity meter etc.
Well in the end I went round and demolished the place myself, that worked well, lucky I have a couple of really big sons.
The wife wont entertain another investment property, even though there has been some great bargains, as I say 'happy wife, happy life' so shares it is.

 

[Smurf1976]

Back to inflation, I see on another forum rather a lot of people complaining that they're getting emails from their electricity supplier informing them of new prices effective 1 July 2023.

As an order of magnitude, virtually all of them are more than a 30% increase and some are more than 40%.

Meanwhile for some of my own expenses that are also rising on or about 1 July:

Mobile phone up 6.9%

House and contents insurance up 14.9%

Council rates up 8.9%

Meanwhile at the supermarket I think it's fair to say just about everything I buy has increased in price to some extent. Varies between items obviously but most things are at least somewhat more costly than they were pre-pandemic.

People can't avoid paying council rates and few will consider going without a phone, insurance or utilities. Then there's increases in mortgage repayments or rent affecting many too which is also non-discretionary. Put that all together and it's only a matter of time before discretionary things like entertainment etc sees a decent slump I expect.

 

[over9k]

On the downside, interest rates. Not rates per se but banks passing on the increases. Suffice to say most of the cash I've got is in the brokerage account and I see that's not on the list of accounts where the bank is increasing rates. Damn.....

They are but only when you use one of the accounts that requires you add X amount to it per month to get the "bonus" rate.

The rest of them run what are effectively teaser rates - a certain level of interest but only for 3 or 4 or 6 months or whatever. Shows you that the banks don't expect rates to be held this high for long.





Notice how the 2 year is actually a lower rate than the 1 year?

There's far better accounts out there (like the ones from HSBC I've shown before) that while having the same "you've gotta top them up a bit each month" caveat they compound monthly and so this gives a significantly better annual rate.

You're obviously exposing yourself to monthly rate fluctuations rather than locking one down for the year that way but if you were betting on the RBA not cutting any time soon then they would be the way to go.

 

[over9k]

With all that being said, interest rates are below the inflation rate so you're still getting negative returns in real terms, don't forget that.

 

[Smurf1976]

You're obviously exposing yourself to monthly rate fluctuations rather than locking one down for the year

In my case the reason is simple - ultimately that cash will end up in shares.

Just not right now. When I'm not sure so I'll wear the pain of not being locked into higher rates etc.

But for anyone who does have cash they intend keeping as cash, better rates are available I certainly agree and it's worth looking around.

 

[farmerge]

My last rental it wasn't a brilliant house, but was on a triplex block, the house was fibro and the old couple I bought it of had built it years ago.
Centre passage three bedrooms to the left and a large lounge and large kitchen diner on the right, clean and tidy.
So I rented it to a young couple and as I wasn't that invested in the house I said they could have it for 1/3 of the going rate, as long as they looked after it.
Well long story short the walls were painted with gothic spray painted pictures, I said enough is enough time to go, ended up very badly even after eviction notice they didn't leave, they levered off the bailifs lock and bypassed the electricity meter etc.
Well in the end I went round and demolished the place myself, that worked well, lucky I have a couple of really big sons.
The wife wont entertain another investment property, even though there has been some great bargains, as I say 'happy wife, happy life' so shares it is.

Mr sp my wife is in the same boat as yours.
This is one of the reasons the 2nd house on the farm remains empty
I too subscribe to "happy wife, happy life' and also meals on the table etc etc.

 

[farmerge]

Feeling no abiding need* to stay on message in the Inflation topic or respect Forum Decorum* ... we had a neighbour, a tenant, who was evicted.

From the leased car being repossessed, to the realisation the Sheikh of Dubai wasn't going to pay him A$5mill, he managed to stay in his $1000 a week apartment for 20 weeks until the Sherriff evicted. Process being served ... the owner had to employ an agency, the notice was given, the ultimata delivered, then the assembled weight of the law moved. Twenty minutes to pack a garbage bag of essentials, then a week to arrange a removalist with just 1 hour to get things out. He didn't do that, so owner had to then arrange a removalists to empty the place AND store it for up to a month allowing for possible claim .... He didn't, so things went to Salvos, tip.

Out of pocket $30k??

*as some poster blocks me, and I don't see this thread narrative, hence there no compunction to stay on topic, and I'll do a FMG. If said blocker somehow reads this, please don't worry. You're a fool, I'm a winner by not having to read your nonsense.

And so as the law protects even the worst of the worst tenants.
Landlords have little to no rights.

 

[qldfrog]

Definitely got a few years in the house of Detention, and the local assistant bailiff whom I had befriended became a prison guard where they were housed. Man did h give them heaps.

So you still have justice in WA..pleasantly surprised....

 

[qldfrog]

With all that being said, interest rates are below the inflation rate so you're still getting negative returns in real terms, don't forget that.

And taxed for the privilege so definitively neg returns .

 

[farmerge]

So you still have justice in WA..pleasantly surprised....

I have been summonsed by the local police dept as a witness for them to appear in court later this month.
A 1st people person found on my property illegally, Don't supposs much will be done apart from a slap on the wrist.
Usual b/s I suspect, got lost didn't know where they were, but found my one of my sheds ok.

 

[sptrawler]

In my case the reason is simple - ultimately that cash will end up in shares.

Just not right now. When I'm not sure so I'll wear the pain of not being locked into higher rates etc.

But for anyone who does have cash they intend keeping as cash, better rates are available I certainly agree and it's worth looking around.

Yes a lot of the institutions have dropped the punitive penalties associated with breaking a term deposit, so with a rapidly rising cash rate it is often worth re negotiating.

 

[Dona Ferentes]

Recent housing price changes, in various countries. Aust not that bad!

Big difference with real and nominal change, in high inflation nations.

Inflation, everywhere , is a monetary phenomenon - Milton Friedman

Mapped: The Growth in House Prices by Country

Global house prices were resilient in 2022, rising 6%. We compare nominal and real price growth by country as interest rates surged.

advisor.visualcapitalist.com

 

[divs4ever]

With all that being said, interest rates are below the inflation rate so you're still getting negative returns in real terms, don't forget that.

yes , a largely ignored fact

the big gotcha for me ... is a better lace to deploy the cash ( now or in the near future ) but being a baby boomer i have seen this before in the '70s and '80s but one still needs to be careful

 

[divs4ever]

And taxed for the privilege so definitively neg returns .

and deemed if a pensioner

 

[farmerge]

yes , a largely ignored fact

the big gotcha for me ... is a better lace to deploy the cash ( now or in the near future ) but being a baby boomer i have seen this before in the '70s and '80s but one still needs to be careful

Most definitely. those days of 17% still haunt me, though we did own what we lived in at the time.