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You still got cgt, agents fees and somehow the forgotten interest paid to the bank so far. It is a profit but its the govt and the other pests in line who are really making the bigger killing
Living in Sydney this line is getting trotted out all the time...bought for 850k got it valued and now worth 1.2 mill--made $400k in a few years. I find this logic extremely frustrating...if he sold for 1.2 mill tomorrow, guess what he'd be paying that and some for a new house. So reality is most people are buying and selling in the same market and odds are people will make nothing and probably just extend their mortgage further to "up size" to a bigger, better and shinier house. Not having a crack at your statement more expressing my general frustration with Sydney folks who are obsessed with real estate prices and trot out this flawed logic at every BBQ they go to.
You still got cgt, agents fees and somehow the forgotten interest paid to the bank so far. It is a profit but its the govt and the other pests in line who are really making the bigger killing
Can't believe that many ex-pats have returned to move the market the way it has over the past two years.Lots of talk about a housing shortage since COVID-19, but I can't recall a lot of talk about it before. With most foreigners on work visas having left once COVID-19 hit, is all this demand coming from returned ex-pats?
Can't believe that many ex-pats have returned to move the market the way it has over the past two years.
Based on some discussions with a few of the prominent local agents in my area and lot of the sales were going to first/second home owner occupiers (generally younger) who, in the first 18 months following the covid outbreak, were being driven by FOMO of rapidly rising prices with not a lot of properties on the market. Certainly were I am the big price increase was driven my high buyer demand but not a lot of properties on the market. But since December last year there has been a noticeable increase in properties coming onto the market so no doubt the drop off in clearance rates and drop in median prices is the direct result of greater supply. Interestingly a lot of the properties that have come on the market here in the last 3 months have been long term rentals so maybe investors are cashing in around here. Probably worth noting that my comment is with reference to inner Sydney city areas and I have no doubt different areas of Australia were being driven by different factors.So, it is just renters deciding to buy? Has COVID-19 done something to out collective psyche? It's worth noting that real estate prices have spiked in many other countries after the pandemic hit. There must be some psychological underpinning to it all.
Plus stamp duty... That's a biggyYou still got cgt, agents fees and somehow the forgotten interest paid to the bank so far. It is a profit but its the govt and the other pests in line who are really making the bigger killing
Plus stamp duty... That's a biggy
Living in Sydney this line is getting trotted out all the time...bought for 850k got it valued and now worth 1.2 mill--made $400k in a few years. I find this logic extremely frustrating...if he sold for 1.2 mill tomorrow, guess what he'd be paying that and some for a new house. So reality is most people are buying and selling in the same market and odds are people will make nothing and probably just extend their mortgage further to "up size" to a bigger, better and shinier house. Not having a crack at your statement more expressing my general frustration with Sydney folks who are obsessed with real estate prices and trot out this flawed logic at every BBQ they go to.
As I've said elsewhere we have just bought a PPOR (otherwise would have been living in the car... long story).Yeah when you are up sizing or downsizing. Unless you live in a car and just stare at your profits on your banking app
I'm wit you on the idea of selling for a huge profit but having to buy another for a huge expense, doesn't make sense. Unless you're the type of person that doesn't mind where you live, and selling in a sort after suburb only to buy in a no-name suburb or further out.
I'll admit I'm one of those people who whinges about the market. I just don't get it and how it's still been up so high. I remember thinking 10years ago that it had to collapse sometime soon. I was obviously wrong then. My main bemoanment these days is more how it gets prop'ed up and touted as the only smart investment. I was lucky enough to find myself in a better paying job starting last year, above the regions average wage, but I definitely can't afford a house in my area. I also hate those articles that say 'bought for x in 2011 and now its worth almost twice as much!'. They don't take into account council rates, capital spent for upkeep, or the interest paid while holding it. Even with those figures I'm not sure the ivnestment really stacks up for the risk that is involved. The longer it keeps going up and incentivised to go up, the worse it'll be when it comes down. It's just a 'hot potateo' right now waiting for it to go off (passing it to the next gov in the hope it blows up in their face, not their own).
Anyway .... end rant. lol
Talking of risk…wouldn’t want to be holding an IP when the ALP get in. They’ll be looking for some quick wins and knowing the ALP they’ll be sizing up a slap down of owners of IPs—after all, investors are the root of all evil, right ?I'll admit I'm one of those people who whinges about the market. I just don't get it and how it's still been up so high. I remember thinking 10years ago that it had to collapse sometime soon. I was obviously wrong then. My main bemoanment these days is more how it gets prop'ed up and touted as the only smart investment. I was lucky enough to find myself in a better paying job starting last year, above the regions average wage, but I definitely can't afford a house in my area. I also hate those articles that say 'bought for x in 2011 and now its worth almost twice as much!'. They don't take into account council rates, capital spent for upkeep, or the interest paid while holding it. Even with those figures I'm not sure the ivnestment really stacks up for the risk that is involved. The longer it keeps going up and incentivised to go up, the worse it'll be when it comes down. It's just a 'hot potateo' right now waiting for it to go off (passing it to the next gov in the hope it blows up in their face, not their own).
Anyway .... end rant. lol
Agree with this as well. Unless you are buying 6 hours drive away you ain't trading up.Living in Sydney this line is getting trotted out all the time...bought for 850k got it valued and now worth 1.2 mill--made $400k in a few years. I find this logic extremely frustrating...if he sold for 1.2 mill tomorrow, guess what he'd be paying that and some for a new house. So reality is most people are buying and selling in the same market and odds are people will make nothing and probably just extend their mortgage further to "up size" to a bigger, better and shinier house. Not having a crack at your statement more expressing my general frustration with Sydney folks who are obsessed with real estate prices and trot out this flawed logic at every BBQ they go to.
I'd hate to see rents if they touch it.Talking of risk…wouldn’t want to be holding an IP when the ALP get in. They’ll be looking for some quick wins and knowing the ALP they’ll be sizing up a slap down of owners of IPs—after all, investors are the root of all evil, right ?
Probably got more IPs than the libsTalking of risk…wouldn’t want to be holding an IP when the ALP get in. They’ll be looking for some quick wins and knowing the ALP they’ll be sizing up a slap down of owners of IPs—after all, investors are the root of all evil, right ?
I get the feeling that there has been increased interest in industrial properties particularly from the SMSF sector. Relative to residential properties--commercial properties certainly provide a good yield (particularly in this low interest environment) and commercial leases are much more in favour of the landlord.Industrial properties are insane prices and super low stock.
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