I really fail to see why it's relevant,
Actually, a simple kitchen or bathroom renovation, on an older style unit, even if it is only cosmetic can substantially increase the rent received per week.
If you don't understand how tax depreciation works in relation to fixtures and equipment & building how can you comment about its cost to maintain rental return or improve rental return?
yes it does. Nominal cost less your marginal tax rate will be the actual cost of the asset if you allow for depreciation. Of course it differs if it is classified as a capital works item, because it is written off over a longer period, but will still affect cash flow. If you generate more rent over its useful life, than your adjusted actual cost you are ahead.Because tax has nothing to do with this.
The point is that RE is a depreciating asset. Renovations do not increase yields so much as maintain the quality of the premises. This is about the mentality of investors.
This new timeframe primarily reflects recent business performance in Australia.* For the 2012 first quarter, the company expects to report elevated loss experience in Australia as lenders accelerated the processing of later-stage delinquencies from prior years through to foreclosure and claim at a higher rate and severity than expected, particularly in coastal areas of Queensland that experienced natural catastrophes and regional economic slowdowns and among certain groups of small business owners and self-employed borrowers. First quarter experience is anticipated to result in a modest first quarter loss in the Australian MI business.
Because tax has nothing to do with this.
The point is that RE is a depreciating asset. Renovations do not increase yields so much as maintain the quality of the premises. This is about the mentality of investors.
I've seen that in action, multi millionaires made as sure as night follows day and it's safe and easy as long as you can afford to service any loans.
Crashes/recesssions mean nothing, just hold and forget aboiut it , it will always look after you in the end.
You cant see the future young gun, you are speculating what you think is going to happen in the next few years.
I agree that houses have stagnated, and with unemployment going up, prices will probably fall abit further, but I know quite a few that have bought in the last 12 months, be it to live in or invest.
They seem happy with their choices.
You cant see the future young gun, you are speculating what you think is going to happen in the next few years.
I agree that houses have stagnated, and with unemployment going up, prices will probably fall abit further, but I know quite a few that have bought in the last 12 months, be it to live in or invest.
They seem happy with their choices.
You cant see the future young gun, you are speculating what you think is going to happen in the next few years.
Did anyone else see 7.30 on the ABC tonight in Victoria? In an item about the upcoming Victorian budget they highlighted the fact that revenue from stamp duty is down $366 million. If that doesn't inndicate that there's been a downturn in real estate sales in Victoria I don't know what does.
Victoria will be in recession very soon if it isnt already, house prices are falling now, the ABC news headed off with more job loses one in a transport company closing down where management said no ones buying anything, hang on tight.
http://topdocumentaryfilms.com/real-estate-4-ransom/
This will help Mr. B your blood will boil.
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