Heard the property talkback segment we have on the radio here on a Saturday morning and the property expert (real esate agent) said that you should not expect good returns from property and you should only expect to make capital gain. Is this what most property investors think? To me, if I can make good returns and capital gain elsewhere (shares) why would I bother with property? (other than for diversification maybe).
Heard the property talkback segment we have on the radio here on a Saturday morning and the property expert (real esate agent) said that you should not expect good returns from property and you should only expect to make capital gain. Is this what most property investors think? To me, if I can make good returns and capital gain elsewhere (shares) why would I bother with property? (other than for diversification maybe).
LOL... yeah that would get me right back into the domestic market! The returns are ****e as it is.... you really don't want more rentals available do you? Maybe mommy government should provide them all?
Yeah right mate. How much more encouragement did you need to invest in property ? It was 10% return per year, plus super low interest rates, tax breaks ect AND THERE WAS A GOD DAMNED SHORTAGE OF RENTAL PROPERTIES !!!! Non of this actually encourage an INCREASE IN DWELLINGS. It actually ENCOURAGED A LIMITED INCREASE TO PROMOTE SCARCITY OF SPECULATIVE INVESTMENTS.
So I don't see how "encouraging investment" does anything to improve stock.
Only thing to improve stock WILL BE TO BUILD MORE NEW HOUSES NOT BUY AND SELL EXISTING ONES.
Plain and simple - NEGATIVE GEARING DOES NOT WORK - GET RID OF IT IT DOES NOT INCREASE RENTAL AVAILABILITY as we saw during the BOOM there was SHORTAGE or RENTALS.
AND THERE WAS A GOD DAMNED SHORTAGE OF RENTAL PROPERTIES !!!! Non of this actually encourage an INCREASE IN DWELLINGS. It actually ENCOURAGED A LIMITED INCREASE TO PROMOTE SCARCITY OF SPECULATIVE INVESTMENTS.
So I don't see how "encouraging investment" does anything to improve stock.
You can if you pass the business tests in the Non-Commercial Loss provisions...Negative gearing is a special exemption in taxation law so you can't just deduct a loss making business against a profitable one..
At the moment, I'd say that most property is returning under 5%.
Cash in bank is higher returns and safer (from a property bubble/losing value), for the moment (no a$$hole tenants, rates, body corp, etc...etc...to deal with).
Shares are also, generally speaking, out performing property returns atm.
Gross, my IP returns me around 6% on capital outlay. Net it's more like 4% so you are right.
A 100k in an IP will return the same but in say 20 years time the property will have doubled or trebled but the cash will still be a 100K.
I have been a long term shares and property investor. Over the last 5 years our sharemarket has gone backward and is nearly 40% off it's highs. On the other hand my IP is still holding it's price well and every year the rent has been increasing. I think, I still prefer that lovely rental deposit each Month in my account over gambling in the share market anyday, cheers.
It's blue chip, northern beaches in Sydney. I never have a problem renting it, blue chip = walk to beach, supermarkets, city buses etc. It is an investment that I never need worry about and I have no mortgage on it. Not only that, all the expenses are tax deductible and one day we might end up moving back in there so whilst renting all the bills are covered.Don't mean to pick on you bill, but that is a VERY poor return, and unless you paid cash in full, or a large portion of the property, then it would be a poor investment choice.
This will soon be realised to be huge myth. Property will not treble, and will unlikely double in 20 years from the current prices. Some areas and properties perhaps, but the market as a whole absolutely not. I would buy property under the assumption that I was going to receive no capital gain in the next 20 years, and base the math on that.
Yes probably but I am not into gambling, 6% is ok for me. I do have stocks and hybrids too, I'm just saying I've seen several cycles and real estate rarely goes backwards to the same extent like stocks do.After reading the above its obviously heavily cashflow positive, I think you could find one returning far better than 6% gross if you looked around though
It's blue chip, northern beaches in Sydney. I never have a problem renting it, blue chip = walk to beach, supermarkets, city buses etc. It is an investment that I never need worry about and I have no mortgage on it. Not only that, all the expenses are tax deductible and one day we might end up moving back in there so whilst renting all the bills are covered.
I have been investing in property since 1978, I have no worries of where the price will be in 20 years, it will be up for sure without doubt. I only invest in areas where there is no land left, nothing left in Manly Warringah area.
Yes probably but I am not into gambling, 6% is ok for me. I do have stocks and hybrids too, I'm just saying I've seen several cycles and real estate rarely goes backwards to the same extent like stocks do.
Property investing has become a disgusting evil which has pushed both owning and renting above the means of ordinary Australian people.
Now that it is weak, there is an INCREASE in availability of rental properties.
Telling us that investor confidence has little to do with increasing rental availability.
They need to get rid of negative gearing and tax exemptions on investment properties immediately.
The facts are pretty clear - when investment environment was strong there was a SHORTAGE of rental properties..
After decades of handing out billions to greedy investors to push prices out of reach for FHBs I think it is due time that FHBs receive a similar benefits to that provided to investors.
The current situation is socialism for the rich, capitalism for the poor young and struggling. It is a disgrace.
After decades of handing out billions to greedy investors to push prices out of reach for FHBs I think it is due time that FHBs receive a similar benefits to that provided to investors.
The current situation is socialism for the rich, capitalism for the poor young and struggling. It is a disgrace.
What's the FHB grant then?
LOL.
You do realise that this is a stock forum? Where people invest in various asset classes?
I guess I'm an evil capitalist as I worked my a$$ off during my apprenticeship and when I worked in NSW, QLD, VIC, London and WA, and purchased some investment properties, instead of wasting my hard earned money????
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