The building industry is already healthy. There really is no need to throw more federal money away into it.
Imo i think its absolutely ridiculous that we have to entice people with grants etc to purchase a home to live in. What an epic waste.
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I concur ........ a healthy building industry is what is required for the common good of Australia. Many trades will be affected as well as suppliers.
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I concur ........ a healthy building industry is what is required for the common good of Australia. Many trades will be affected as well as suppliers.
The building industry is healthy? LOL. Nope ...... apprenticeships are at an all time low for tradespeople. Builders are reporting massive drops in turnover and some larger firms are shedding staff as well as closing their doors Australia wide. Building stats are through the floor (no pun intended) with approx 15% declinal. (PRIVATE HOME CONSTRUCTION)
The only subsidies I know of is the FHBG which is more if you build rather than purchase established. Encourages FHB to take the plunge but also no stamp duty applicable either. Down side is the months of waiting during construction. The building company does not get the subsidy ????? The purchaser does to assist with finance/deposit requirements.
Building company I contracted to had 54 houses under construction 3 years ago. They have 8 now. Things are just whistling along.
Now if you read what Agentm posted and what I agreed to was this:- Change the FHB to be the same for established as well as construction AND funnelled the negative gearing investor finance into new homes only. This would help IMO.
The building industry is healthy? LOL. Nope ...... apprenticeships are at an all time low for tradespeople. Builders are reporting massive drops in turnover and some larger firms are shedding staff as well as closing their doors Australia wide. Building stats are through the floor (no pun intended) with approx 15% declinal. (PRIVATE HOME CONSTRUCTION)
The only subsidies I know of is the FHBG which is more if you build rather than purchase established. Encourages FHB to take the plunge but also no stamp duty applicable either. Down side is the months of waiting during construction. The building company does not get the subsidy ????? The purchaser does to assist with finance/deposit requirements.
Building company I contracted to had 54 houses under construction 3 years ago. They have 8 now. Things are just whistling along.
Now if you read what Agentm posted and what I agreed to was this:- Change the FHB to be the same for established as well as construction AND funnelled the negative gearing investor finance into new homes only. This would help IMO.
Change the FHB to be the same for established as well as construction
Building company I contracted to had 54 houses under construction 3 years ago. They have 8 now. Things are just whistling along.
Wage Facts
Full-time earnings in Australia averaged A$66,594 a year in the final quarter of 2010. (Seasonally adjusted wages – Bureau of Statistics.)
(The average bank variable interest home loan interest rate rate over the past 59 years in Australia is 8.87 percent. (source Reserve Bank of Australia standard variable interest rate home loans, Jan 1959 to Feb 2008)
Now if you read what Agentm posted and what I agreed to was this:- Change the FHB to be the same for established as well as construction AND funnelled the negative gearing investor finance into new homes only. This would help IMO.
Quick question for all you property moguls, would you buy an investment property outright and use the returns in rent for income, or would you get a loan and use the returns on income to just pay the interest of on the loan, whilst aiming to profit from an increased property worth for the property in the future?
If you had cash to pay outright for an investment property I can think of better things to do with the money in the short term.
Hypothetically I would get an Interest Only loan but this would depend on the LOCATION of the property, the COST of the property, the LEASE agreement including it's terms as well as the INDIVIDUAL CIRCUMSTANCES of the purchaser. PLUS a stack of other information required prior to making ANY decisions of investing into property.
*Please note this does not constitute advice in any way shape or form and DYOR*
Lets say hypothetically the location of the property was on the outskirts of Perth/Brisbane, the cost of the property was between 240k-320k, the lease was for 1-5 years at $350-500 per week and the purchaser had between 400k-700k.
What other things would you do if you had the money to buy a property outright?
Note that I am not using this advice nor is it intended for anyone else to use as advice.
These are purely hypothetical situations.
Hypothetically I would place 20% deposit on a property worth 320k ($64,000) and get me an IO loan for 10 years. $256,000 x 8.17% = $21,000 per annum. Obtaining $500 per week rent is up there but seeing how this is hypothetical I will play along for comedy purposes only. $500 per week x 52 weeks = $26,000 per annum. Positively geared for 5k a year? Sounds too good to be true. Spend approx another 15k on stamp duty and settlement fees and insurances etc and put a fork in you ... you are done.
Wait 10 years and it could be your home is now worth the same as what you paid for it or it could be more (LIke I said it depends on the LOCATION) and not just the suburb.
This should leave you with approx $400k in your hand to play with. 200k into fixed interest at 6.17% = $12k in the kitty every year and stick the rest into bluechip shares if you want to play it safe (marginally). Depends on your appetite for risk I would suggest.
Any one else got some good ideas?
Would you say that a fixed interest rate of 7% per annum is too volatile in this current market?How about 8%?9%?10%? just would like your opinion, will not be taking this for advice, will simply prompt me to do more research.
P.S. What do you believe are good indications that a property is in a quality location?Neighborhood crime rates?Close to shops?A park nearby?
Read what I wrote. You can get 8.17% IO for 10 years fixed with ANZ
How is that volatile for a 10 year strategy???????????????? Can drop to 7.79% per annum if you pay yearly in advance.
Do the research on the propety market yourself. Fresh out of ideas here.
Ok kid out of high school. .. I will stop yelling when you stop asking leading queations. DEAL?
Does anyone else think that the housing prices in and around Perth are set to soar?
In part due to cashed out miners looking for a place to settle down and young families brought in by the mining boom?
Lets say hypothetically the location of the property was on the outskirts of Perth/Brisbane, the cost of the property was between 240k-320k, the lease was for 1-5 years at $350-500 per week and the purchaser had between 400k-700k.
What other things would you do if you had the money to buy a property outright?
Note that I am not using this advice nor is it intended for anyone else to use as advice.
These are purely hypothetical situations.
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