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that might depend if you can be lured ( or coerced ) into a reverse mortgage ( and the consequences of that )
that might depend if you can be lured ( or coerced ) into a reverse mortgage ( and the consequences of that )In nominal values that's likely true.
In practical terms though high house prices are of no benefit to an owner occupier. Sure, your house is worth however much but so what? You need somewhere to live so the money isn't a lot of use in practice.
Given the average interest rate to yield ratio selling a house and renting same quality house has some great wealth creation opportunities especially if you can get double digit returns on the funds from selling a house . It has certainly crossed my mind , 2.5 million cash returning 20% type returns rents a 5 million dollar place with plenty left over to live the dream without touching super and current investments . I am torn on doing this . I know paying $2k a week rent seems ridiculous but the freedom that comes with that type of income and to easily be a gypsy cannot be underestimated . Whitsundays is calling me ..... No house insurance , no rates , no maintainence . Hell can get rentals with pool and garden maintainece thrown in . Selling a house today doesnt seem like a big sacrifice of future capital gains in the next decade . I have 1400sqm block and i am getting sick of the work keeping that looking hollywood .In nominal values that's likely true.
In practical terms though high house prices are of no benefit to an owner occupier. Sure, your house is worth however much but so what? You need somewhere to live so the money isn't a lot of use in practice.
I only recently did the sums on this taxation wise with both my wife and I with 30k each annual into concessional super contributions along with the compulsory super contributions we can reduce $500k returns down to sub 400k taxable and potentially reduce each of us to around $50k tax each a year , this would give up $300k to live of and given $100k covers shelter thats a handy level of $200k ( $4k a week to enjoy life ) I am sure we could likely actually save half of that tbh . I need to speak to a good accountant and get the pros and cons of trusts etc but its definitely something i will be doingGiven the average interest rate to yield ratio selling a house and renting same quality house has some great wealth creation opportunities especially if you can get double digit returns on the funds from selling a house . It has certainly crossed my mind , 2.5 million cash returning 20% type returns rents a 5 million dollar place with plenty left over to live the dream without touching super and current investments . I am torn on doing this . I know paying $2k a week rent seems ridiculous but the freedom that comes with that type of income and to easily be a gypsy cannot be underestimated . Whitsundays is calling me ..... No house insurance , no rates , no maintainence . Hell can get rentals with pool and garden maintainece thrown in . Selling a house today doesnt seem like a big sacrifice of future capital gains in the next decade . I have 1400sqm block and i am getting sick of the work keeping that looking hollywood .
I see the point, but renting isn't without very real downsides in Australia.Given the average interest rate to yield ratio selling a house and renting same quality house has some great wealth creation opportunities especially if you can get double digit returns on the funds from selling a house .
Not sure what you are alluding to here , whats your thought process on these downsides ? I rented houses for a couple decades before i bought and maybe i was lucky and never suffered these downsides . Always keen to get all POVI see the point, but renting isn't without very real downsides in Australia.
I am just far less optimistic than you on the 20% return..i do my calculations at cpi plus 3%..and it is not a given.....Given the average interest rate to yield ratio selling a house and renting same quality house has some great wealth creation opportunities especially if you can get double digit returns on the funds from selling a house . It has certainly crossed my mind , 2.5 million cash returning 20% type returns rents a 5 million dollar place with plenty left over to live the dream without touching super and current investments . I am torn on doing this . I know paying $2k a week rent seems ridiculous but the freedom that comes with that type of income and to easily be a gypsy cannot be underestimated . Whitsundays is calling me ..... No house insurance , no rates , no maintainence . Hell can get rentals with pool and garden maintainece thrown in . Selling a house today doesnt seem like a big sacrifice of future capital gains in the next decade . I have 1400sqm block and i am getting sick of the work keeping that looking hollywood .
Simple ones i can see:Not sure what you are alluding to here , whats your thought process on these downsides ? I rented houses for a couple decades before i bought and maybe i was lucky and never suffered these downsides . Always keen to get all POV
It'll depend on location but the basic problem is scarcity.Not sure what you are alluding to here , whats your thought process on these downsides ? I rented houses for a couple decades before i bought and maybe i was lucky and never suffered these downsides . Always keen to get all POV
I do get what you are saying here but i think the hassle of locating a rental is more of a problem at the lower end of the market tbh . Still something i do need to consider if i go down the road of my idea nevertheless . I have a couple REA i have been talking to about selling my house and will hit them up on higher priced rental metrics . Thanks for your feedbackIt'll depend on location but the basic problem is scarcity.
It's not simply a case of paying the money and that gets you a house. Rather, it has become a game of musical chairs where it's a given someone will miss out and nobody wants that to be them.
Hence the language used today is "applying for a rental property". You're applying to be considered to rent it in much the same way as applying for a job. You're going to be put through a selection process that aims to reject almost all applicants. Because there's one house to rent, and there's 100 people lined up outside waiting to have a look through it.
So it depends if you've got any red flags as to how easy you're going to find it but that's the crux of it, you're competing for what is at present a scarce resource.
I am talking about my abilities to return those numbers , i do realise not many out there will be getting that , but if you manage your own SMSF and dont beat the generic super why are you even doing it .I am just far less optimistic than you on the 20% return..i do my calculations at cpi plus 3%..and it is not a given.....
But agree on the idea
Look i am not saying its for everybody . Most people dont like change and thats fine . I am the guy that before buying a house never lived in the same place for over 3 years and never held down the same job in the same place for about the same time , a mercenary contractor chasing earnings for want of a better word . Ive had so many interesting jobs and lived in some places i never thought i would . I am a diesel heavy machinery tech by trade and i am sick of fixing things tbh . Trading/markets is my passion today which i can do anywhere with reliable internet . I have already started to minimize my foot print to get some choices , i have 5 cars and will get that down to 2 i have probably $100k of tools and thats going . Ive built enough furniture , planted enough gardens , renoed enough house . Possesions can become an anchor and i am cutting that chain . I desire to make the remainder of my life about experiences . This all about options/choices for me . I am a hustler by nature and change is a part of that . I am just sharing my views , not forcing em on anyone . Where most see problems i see solutions . I am doing it while i still am fit and able and mentally sharpSimple ones i can see:
Not knowing if you are going to be living there or moving next month, hassle of finding new place, hassle of not actually being able to quickly repair something yourself..i know..i am an engineer...
Unable to start a garden, plant a fruit tree... Or improve a fencing or pasture....i know .i am a farmer...
Just to say that different types of people at different stages in life have different needs..and tenancy is not for everyone
Good points and good thinking in your position Chipp.Look i am not saying its for everybody . Most people dont like change and thats fine . I am the guy that before buying a house never lived in the same place for over 3 years and never held down the same job in the same place for about the same time , a mercenary contractor chasing earnings for want of a better word . Ive had so many interesting jobs and lived in some places i never thought i would . I am a diesel heavy machinery tech by trade and i am sick of fixing things tbh . Trading/markets is my passion today which i can do anywhere with reliable internet . I have already started to minimize my foot print to get some choices , i have 5 cars and will get that down to 2 i have probably $100k of tools and thats going . Ive built enough furniture , planted enough gardens , renoed enough house . Possesions can become an anchor and i am cutting that chain . I desire to make the remainder of my life about experiences . This all about options/choices for me . I am a hustler by nature and change is a part of that . I am just sharing my views , not forcing em on anyone . Where most see problems i see solutions . I am doing it while i still am fit and able and mentally sharp
This is a bit of a negative but apartment renting makes you a little more minimalist and therefore an easier move . But having to move can be a positive , new surroundings , new adventures , a new place for a meal etc . Being from Brisbane the range of choice within a 90m drive is incredible . Noosa to Coolangatta has a massive amount of places i think id enjoy living . I will remain within a 2 hour drive of Brisbane until my wifes mum passes but then my horizon becomes unlimited . I know people will say but what about family and friends but trust me if you move to Noosa or Whitsundays you will probably get sick of em landing on your doorstep eyeing that spare bedroom for a week or 2On the down side he has had to move twice now because the flat was sold. He's pretty conservative so he is now considering rebuying if only for security of home.
Looks like we are all on the same song sheet.Good point, Vancouver has gone that way definitely, I was there in May and caught up with friends, they weren't happy with the mega appartments.
But it was definitely happening and Canada is importing bulk people also plus has a similar economy/demographic as us, so you might be right.
The thing is with Canada though, they have the U.S next door, we don't.
So the trade/economy dynamics is very different, but having said that, there was a very strong Asian small business presence, so maybe the Asia tie is stronger than the U.S tie?
Jesus..most of Europe do dynamite these..
Collapses of builders have more than doubled in the last year...I'm hearing from agents that big developers are not building. There's properties for sale but they are not buying up the development sites to build large scale units.
To frightened to be caught out by being unable to finish the build with a profit.I'm hearing from agents that big developers are not building. There's properties for sale but they are not buying up the development sites to build large scale units.
Makes perfect sense.While tourism, resources and education usually dominate trade between Asia and Australia, a surprising new trade has been flourishing under the radar in recent years – the booming business of prefabricated “prefab” housing and building materials.How Chinese-made prefab homes could solve Australia’s housing crisis
Chinese prefab home exports offer Australian builders a cost-effective way to tackle the housing affordability crisis and deepen trade ties.www.scmp.com
Though the numbers may pale in comparison to the billions of dollars in two-way trade between the regions, Australian imports of prefab goods from Asia have been steadily climbing year over year.
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