Buying Land is like a casino token it has no value like Gold .
You pay for land or a token and speculate you will make more than the seller some times you do,
Like any gambling or have to know the profit is maxed out and bail out.
Buying Land is like a casino token it has no value like Gold .
You pay for land or a token and speculate you will make more than the seller some times you do,
Like any gambling or have to know the profit is maxed out and bail out.
Hahaha,... you can't be serious.
i aggree about Gold but it is far more speculative than real estate, Gold has absolutely no value apart from the hope that some one will give you real assets or goods for it in the future.
Offcourse you can gamble on the future price of any asset Gold, real estate, shares, even oil and wheat.
But Gold is not an investment grade asset, income producing realestate is.
The good news for homeowners is that AMP Capital chief economist Shane Oliver and Grattan Institute program director Saul Eslake - the ANZ's chief number cruncher for close to 14 years - say Victoria will avoid a US-style property crash which saw prices plunge by 30 per cent.
Instead, house prices will continue their single-digit slide into 2012 before stagnating for five to 10 years as wages catch up with a median house price which has climbed 133 per cent since 2000.
Read more: http://www.news.com.au/money/proper...ne/story-e6frfmd0-1226091470380#ixzz1Rljq5rGh
Thought this was interesting coming from ANZ.
So holding a NG property with 0% capital growth for 5 years seems very unappealing.
Cheers
Thought this was interesting coming from ANZ.
So holding a NG property with 0% capital growth for 5 years seems very unappealing.
Cheers
An NG property is done for tax purposes and not for capital gain. It is to offset your taxable income and CG is a bonus. Funny how the ANZ guru agrees with me !
An NG property is done for tax purposes and not for capital gain. It is to offset your taxable income and CG is a bonus. Funny how the ANZ guru agrees with me !
Sorry TS, you have lost me. If the investment looses money and there is no ppreciation in the asset value over a period of time, it is still a bad investment, regardless if you get a little back on you tax.
Cheers
In 10 years time walk in to a shop with your title deeds and see what you can buy, the shop keeper will be serving the man with gold or silver.
Different periods of time dedicate what is rising or falling, land has had its day and will be a long time before you see prices like this again.
42 empty shops on the strip on the Sunshine coast has to be telling you some thing is not right.
So we lose $100 to save ~$50 tax, never mind cap gain?
In 10 years time walk in to a shop with your title deeds and see what you can buy, the shop keeper will be serving the man with gold or silver.
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The shopkeeper can't eat gold, use it as shelter, let alone use it for anything but sitting under his mattress.
With land one can provide shelter - when push comes to shove you think a person would choose a gold bar over shelter?
Remember it's not always about the asset value appreciating - don't discount the cash flow (i.e. rent returns). If you have a positively geared/positive cashflow property then any CG is a bonus. You can be negatively geared with positive cashflow so that 'little back on your tax' makes all the difference.
That being said, reading that article they anticipate flat prices in line with inflation so no 'real growth'. Effectively if you purchase a property with positive cashflow you have an investment with an inflation hedge + automatic increase in your earnings from day 1 with a chance of CG (holding over 30 years I like my odds of that eventuating). What's not to like?
Being pedantic:
Saul Eslake was the former chief economist at ANZ, so his view does not express that of the bank. The bank is unlikely to come out with such an article due to self-interest.
and;
The investment loses money, not looses. lose = give up, loose = not tight.
Some constructive criticism - I welcome any who would provide such feedback too.
The shopkeeper can't eat gold, use it as shelter, let alone use it for anything but sitting under his mattress.
With land one can provide shelter - when push comes to shove you think a person would choose a gold bar over shelter?
BUT gold here is the same as gold everywhere. I assume you are disregarding its worth in an investment portfolio, and its value to central banks.
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Water is the most important commodity,a glass of water in a wasteland is worth more than Gold . Food is next, medicine, clothing. fire, fire arm's then shelter. A piece of gold will get you all of these a Gold Coast 19 acre beach front block wil not in a depression.
This is what a block of land will be worth in 10yrs.
.http://www.kcet.org/socal/2008/09/foreclosure-alley.html
BUT gold here is the same as gold everywhere. I assume you are disregarding its worth in an investment portfolio, and its value to central banks.
Of course you can go to the argument about shelter!! Can housing be used in electrical components? Come on....
I like this quote of yours, filled with an ideal world of ideals
I can assure you, that house prices CAN fall. Look at America (insert "we are different" quote)
I can assure you that rent prices are stagnant in Australia (and hence falling) (insert "not in my suburb" quote)
I can assure you that any sane investor does not agree with your point that CG is a bonus, CG is essential to prevent inflation killing your investment, and BTW for an investment property, CG has to be above inflation to break even on that component (insert expectation of explanation quote)
I will, however ask one explanation from you.
Explain how to have positive cashflow AND negative gearing, and please include all outgoings..... awaiting reply on this maestro. Please show me this being maintained, and better than investing in a bank!.
Gold is the "snugggie" of the investment world, It's sold on late night TV and if you buy it you'll look like a fool.
I don't think gold has a place in an investment portfolio, Its not an investment grade asset.
At best it is a speculative play banking on it's price going up.
Offcourse their is the arguement that it is a hedge against inflation which it may be unless you buying it at a 100 year high,...and receiving no income.
Heres the thing, All real assets provide a hedge against inflation while also producing income, Gold is usless an investment.
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