From memory the manufactured is blaming the installers, the installers are blaming the manufacturer.strange it seems to be WA specific , i would have thought that piping ( or similar ) would have been used on the East Coast as well with equally disappointing results
i hold several REITs, development/construction companies and am watching for contagion ( remember the ink batts debacle ?)
I have had to fix several broken plastic pipes on our Ponderosa. Any slight tap when you're doing other stuff and there is an instant fountain.... Brittle AF.A few dramas happening in W.A, houses fitted with plastic water pipes are having a huge failure rate and no one wants to take responsibility.
Apparently the product has been banned from use in the U.S since 1990's.
WA homeowners kept in dark on rights over plumbing disaster
Thousands of WA homeowners plagued by devastating water bursts and leaks from a defective plumbing product have been kept in the dark on their rights to full replacement of the faulty piping.thewest.com.au
Meanwhile capital raisings and IPO's can't get off the ground, why would you invest in a business, when you can just buy a house rent it for a few years and double your money.The current property prices in my city are crazy. Prices are increasing 1% per month, listings are sold within 2 to 3 weeks.
I keep saying that this won't last much longer, there is going to be a bust. But 3 years on and the prices keep going up, the buyers keep coming, and the banks keep lending.
Wish I was 40 years younger, I'd be FIFO with 2 IP's on the go.
Won't be wild for much longer.
Labor and the Greens are surely gonna kill it dead with a ban on neg gearing. It's just a matter of time and they won't even have to take it to the next election.
Without the tax deduction on income tax , the numbers just don't add up for sound investment in R. E. . This is not complicated maths . Anyone with half a brain will soon twig to it and that will be the end of it for any aspirational worker wishing to get ahead through property investment. So , who's left to take up the slack in rental housing ?
Unless pollies heavy the Industry Super funds , then there's ...no one outside of State government 's public housing .
Who will want to live in a shoebox ?
Oh yes, the 1/4 million immigrants . Keep the C.F.M.E.U. Labor mates happy , at least .
isnt it one sided?Yes the ups and downs of negative gearing in recent history, fact is actually stranger than fiction, it was stopped, then started, then enhanced.
The concept of negative gearing has been around in some form for a long time. Bob Hawke abolished it in 1985, though re-introduced it in 1987 for the stated reasons of increasing the supply of housing while keeping rents down. But rather than this outcome, it turned out negative gearing only encouraged many to undertake a speculative buy-up of the housing market. Despite Hawke’s claims, all this ended up doing was to reduce housing affordability and increase the wealth of the largest speculators by creating a tax loophole.
In 1999, the Howard Government exacerbated the situation by removing any limitations on negative gearing and by changing the capital gains regime to offer a 50 per cent discount. This opened the gate to investors to run investment properties at a loss, claiming that loss off their taxable income, then selling the property for a profit. In 2011, it was estimated that this tax loophole had cost the Government around $5 billion a year in foregone income tax revenue — in 2015, it was estimated to be about $11.7 billion. Who knows what it is now?
i thought the claim was the product had been 'improved 'From memory the manufactured is blaming the installers, the installers are blaming the manufacturer.
It is strange that we are using a product that was banned in another country, for exactly the same problem, then again it sounds par for course for us. Lol
Negative gearing is available to investors in any asset class. All it it means is that at that moment your interest payments are higher than you income from that asset.Yes the ups and downs of negative gearing in recent history, fact is actually stranger than fiction, it was stopped, then started, then enhanced.
The concept of negative gearing has been around in some form for a long time. Bob Hawke abolished it in 1985, though re-introduced it in 1987 for the stated reasons of increasing the supply of housing while keeping rents down. But rather than this outcome, it turned out negative gearing only encouraged many to undertake a speculative buy-up of the housing market. Despite Hawke’s claims, all this ended up doing was to reduce housing affordability and increase the wealth of the largest speculators by creating a tax loophole.
In 1999, the Howard Government exacerbated the situation by removing any limitations on negative gearing and by changing the capital gains regime to offer a 50 per cent discount. This opened the gate to investors to run investment properties at a loss, claiming that loss off their taxable income, then selling the property for a profit. In 2011, it was estimated that this tax loophole had cost the Government around $5 billion a year in foregone income tax revenue — in 2015, it was estimated to be about $11.7 billion. Who knows what it is now?
Copper pipes spring leaks after they get to a certain age to, they thin and pitt over time, I think 50 to 70 years is their design life, Plastic PVC is meant to last 100 years.i thought the claim was the product had been 'improved '
personally internal piping in a house/unit that is not copper ( especially for hot fluids ) is just asking for trouble , but here we are
( it is not as though there are no copper mines in Australia either )
The current property prices in my city are crazy. Prices are increasing 1% per month, listings are sold within 2 to 3 weeks.
I keep saying that this won't last much longer, there is going to be a bust. But 3 years on and the prices keep going up, the buyers keep coming, and the banks keep lending.
As well as the property tax, the Victorian government in 2023 began a desperate series of new taxes it justified for all sorts of reasons rather than the true one — “we don’t have enough money and our astronomical debt is now costing us a fortune”.
The taxes were ingenious and aimed at business. They included a solar and wind tax on farmers; a container tax on importers and exporters; an education tax on private schools; a tourism tax via Airbnb homes and a health tax on general practitioners. They even tried an electric car tax but it was thrown out by the High Court.
All these taxes are passed on to consumers and hit Victorians in every sphere. History tells us such taxing sprees often occur when voters elect a government which hires large numbers of public servants but does not have sufficient talent, skills or money to undertake its agenda.
When such governments attack property they attack the heart of community wealth and confidence.
Victoria already had a land tax on second homes including holiday homes. But, the government dramatically increased these taxes, subject to a complex series of rules.
Large numbers of people had properties which fell outside the exception rules so were taxed extremely heavily, adding to their council rates, maintenance and interest.
Those with more expensive second homes on the Mornington Peninsula, Surf Coast and other areas concluded “enough is enough” and large numbers put their property on the market. Not only did their expensive homes fall in value, but many couldn’t be sold.
This had a chilling impact across the Victorian landscape because affluent Victorians heard the dismay of their friends and realised what they had counted as a stable asset was no longer saleable at anything like previous prices.
Meanwhile, what compounds the impact of the Victorian property, health, solar, wind, education, tourism and container taxes is the feeling of hopelessness. There may be more taxes in the pipeline.
The ALP in Victoria is funded mainly by the CFMEU and the union can see a decline in major projects, so demanded a long term source of employment — whatever the cost.
The government has chosen a $120bn-plus so-called “underground suburban train to nowhere” project.
Victoria is sadly headed towards more borrowing and taxing. Federal intervention may be required.
Victorians are cutting back and it’ll be a nightmare for the RBA
Without the tax deduction on income tax , the numbers just don't add up for sound investment in R. E. .
When I was a property investor the mantra was the numbers have to add up long before you get to negative gearing, never make an investment based on negative gearing that was only ever the hook used by sprukers.
PVC piping gets UV damaged.Copper pipes spring leaks after they get to a certain age to, they thin and pitt over time, I think 50 to 70 years is their design life, Plastic PVC is meant to last 100 years.
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We need investment in new housing and that is what should be encouraged with the tax breaks.That brings back memories. It was in the days when income above $50k was taxed at 48.5%. A person I worked with was all excited about getting an IP and having a $6k tax deduction. At their income level it meant they dropped at tax bracket and despite getting a tax refund they effectively lost of $4k or so. The look on their face when someone (it wasn't me) pointed that out was interesting to say the least.
And this has been my issue on the Ponderosa. Many of the risers to the outside taps are PVC. I have no idea how old they are but one slight touch when I am working around them and they just shatter.... Obviously these are all exposed to sunlight.PVC piping gets UV damaged.
When I specify electrical conduit, it is always steel galvanised if outside.And this has been my issue on the Ponderosa. Many of the risers to the outside taps are PVC. I have no idea how old they are but one slight touch when I am working around them and they just shatter.... Obviously these are all exposed to sunlight.
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