Australian Politics Forum - House Prices on the move... UP!

Sir lastnail

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Re: House Prices on the move... UP!
Reply #75 - Feb 13^th, 2013 at 2:31pm

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Aside from making homes unaffordable for millions of Australian, negative gearing benefits investment in passive assets like real estate, over more productive assets. It is a poorly thought out policy that benefits a wealthy minority and penalises the majority of Australians, young and old.

http://www.crikey.com.au/2011/05/10/why-abolishing-negative-gearing-makes-comple...

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John Smith

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Re: House Prices on the move... UP!
Reply #76 - Feb 13^th, 2013 at 3:16pm

I'm not so sure why you are so against negative gearing (by the way, did you write that article. .. good opinion poece, low of facts) ...are you against all forms of tax deductions?

our tax system is based on being able to claim expenses use to aquire an income as tax deductions ... if you tax the income, you claim the expenses incurred, simple .... do you claim your wages are higher because of the claims you make against your income?

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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.

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Sir lastnail

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Re: House Prices on the move... UP!
Reply #77 - Feb 13^th, 2013 at 4:15pm

John Smith wrote on Feb 13^th, 2013 at 3:16pm:

I'm not so sure why you are so against negative gearing (by the way, did you write that article. .. good opinion poece, low of facts) ...are you against all forms of tax deductions?

our tax system is based on being able to claim expenses use to aquire an income as tax deductions ... if you tax the income, you claim the expenses incurred, simple .... do you claim your wages are higher because of the claims you make against your income?

there are plenty of other articles that more or less say the same thing. Even Ken Henry told labor to ditch it in his tax review !!

http://news.domain.com.au/domain/real-estate-news/theres-little-positive-about-n...

Quote:

There's little positive about negative gearing

Property manager Eddie Kutner of Central Equity Ltd had just finished putting the case for the rule that allows investors to write off losses made on rental properties against other income before selling the property and pocketing a capital gain taxed at only half their marginal rate.

It was "a responsible part of providing accommodation, a very defensible proposition".

David Koch, the finance journalist and Sunrise host, was at the summit as a community representative.

"Negative gearing on an unproductive asset? Does it just go on for time immemorial or is it time to actually put some limits on it - to say, OK for the first five years, but if it's not producing an income after that why are you there?

"It's done purely for the attraction of letting the taxman pay half. I'm not saying get rid of it all together, but there's got to be a limit - it just can't go on forever."

Mr Australia had spoken. No one returned to the topic.

Earlier the Grattan Institute economist, Saul Eslake, turned the Prime Minister, Julia Gillard, and the Treasurer, Wayne Swan, stony-faced when he said the practice transferred $4.5 billion per year from ordinary taxpayers to affluent ones.

"There are now 1.7 million of them, and they vote," he added. "Which is why the subject is off the agenda for both major political parties."

It was not true that the brief suspension of the practice by former treasurer Paul Keating in the mid-1980s led to a surge in rents. Nine out of 10 negative-geared properties were existing units or houses rather than new ones. Rather than boost the supply of properties negative gearing pushed up the price of existing ones.

"The US has never had negative gearing yet they have never had a rental vacancy rate of less than 5 per cent. We have negative gearing and we have never had a vacancy rate in rental properties of over 5 per cent," Mr Eslake said.

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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

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longweekend58

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Re: House Prices on the move... UP!
Reply #78 - Feb 13^th, 2013 at 5:11pm

Carl D wrote on Feb 12^th, 2013 at 5:37pm:

longweekend58 wrote on Feb 12^th, 2013 at 10:49am:

so why at 80 had she not already bought and paid for her own home? if u take the advice of the lieks of stupid-nail or pansi then you will rent all the time and end up like your aunt. If you take more traditional advice and buy a home when you are younger then when you are old you dont need to rent at all and you can even reverse mortgage or downsize and enjoy the cash.

Well, if you can provide us with a working time machine to take us back about 40 years I'm sure we'll be able to make good use of your advice.

But, back in the real world, we have to make the best of what we have. Paying $177 a week rent as we do now sure beats paying $450 a week (that's the average rent here in Perth at the moment, btw).

I worked out some time ago that I'm better off living in public housing paying a quarter of my income (which, in WA public housing at the moment is $430 a week before tax) than I would be working full time and paying private rent.

That means I work about 20 hours a week with lots of spare time to take care of my aunt and take her out, etc.

At least if anything happens to me, my elderly aunt will have an affordable place to live in. Her pension wouldn't even cover the cost of the cheapest private rental in Perth right now. And, we're not at the mercy of private landlords who might decide to kick you out because they want to sell the place, etc.

its the argument of someone with low ambitions. you don't need a time machine. 60 years ago your aunt should have had the brains everyone else dd and bought a house for her retirement. Instead who probably wasted her money or followed dopey advice like yours Now she is literally paying for it when should could already own her home and be hundreds of thousands of dollars better off. that's what comes from following dopey advice like lastnail's.

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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."

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longweekend58

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Re: House Prices on the move... UP!
Reply #79 - Feb 13^th, 2013 at 5:13pm

Sir lastnail wrote on Feb 12^th, 2013 at 6:00pm:

Carl D wrote on Feb 12^th, 2013 at 5:37pm:

longweekend58 wrote on Feb 12^th, 2013 at 10:49am:

so why at 80 had she not already bought and paid for her own home? if u take the advice of the lieks of stupid-nail or pansi then you will rent all the time and end up like your aunt. If you take more traditional advice and buy a home when you are younger then when you are old you dont need to rent at all and you can even reverse mortgage or downsize and enjoy the cash.

Well, if you can provide us with a working time machine to take us back about 40 years I'm sure we'll be able to make good use of your advice.

But, back in the real world, we have to make the best of what we have. Paying $177 a week rent as we do now sure beats paying $450 a week (that's the average rent here in Perth at the moment, btw).

I worked out some time ago that I'm better off living in public housing paying a quarter of my income (which, in WA public housing at the moment is $430 a week before tax) than I would be working full time and paying private rent.

That means I work about 20 hours a week with lots of spare time to take care of my aunt and take her out, etc.

At least if anything happens to me, my elderly aunt will have an affordable place to live in. Her pension wouldn't even cover the cost of the cheapest private rental in Perth right now. And, we're not at the mercy of private landlords who might decide to kick you out because they want to sell the place, etc.

and this dude longloser is supposed to be a christian that frequents a church each week.

can you believe that from the way he scorns at people's unfortunate circumstances in life ?

Go figure !!

its people like me that support churches that support people like this elderly aunt. people who are in the situation because they followed advice exactly like you are giving. I'm part of the solution while you are part of the cause.

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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."

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longweekend58

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Re: House Prices on the move... UP!
Reply #80 - Feb 13^th, 2013 at 5:16pm

Carl D wrote on Feb 13^th, 2013 at 1:33pm:

Quote:

no that is 850,000 in mortgage and rental stress !!

The thing is what would happen if there are no tax incentives such as negative gearing etc for landlords to hoard properties which essentially denies them to people who genuinely want to own one ? House prices would plummet because genuine buyers would no longer compete with hoarders and speculators who are willing to pay more !!

I wonder what happened to the suggestion that was made several years ago that laws should be passed to allow a person to own one residential property and only one investment property?

Saw it in the newspaper, I think.

Went back into the 'too hard' basket, I guess?

And, since a lot of politicians also own investment properties I would have been very surprised to see it happen.

because most landlords own more than one property which would mean that rental properties would dry up overnight. Did you not think that?

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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."

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longweekend58

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Re: House Prices on the move... UP!
Reply #81 - Feb 13^th, 2013 at 5:17pm

Sir Spot of Borg wrote on Feb 13^th, 2013 at 2:05pm:

John Smith wrote on Feb 13^th, 2013 at 8:53am:

Sir Spot of Borg wrote on Feb 13^th, 2013 at 5:33am:

John Smith wrote on Feb 12^th, 2013 at 9:06pm:

Sir lastnail wrote on Feb 12^th, 2013 at 8:13pm:

Contrary to your beliefs there are a lot of people who lose on property deals

sure there are, there are no guarantees in life for anything apart from taxes and death. Not everyone is cut out to own a home. That does not mean that property is a bad investment just because some people are stupid ... those in trouble or suffering are those that overcommitted or overextended themselves ...

I have several loans, I also have contingency's in place to cover my mortage for at least 12 months if things turn bad or I break my neck and cannot work, and then I have insurance will cover me for a further 12 months if the first 12 months isn't enough. If 24 months isn't enough then I've probably got bigger things to worry about then money.

What if the place where you buy your house goes bad? Like the principle places of employment in the area close down and it becomes a place full of unemployed ppl. Blaming the victim doesnt work then does it.

SOB

you need to consider that before buying .... lots of investors buying in mining towns will get stung when the mines close down, and sooner or later they all close down ...

$200 000 houses are selling for $1 million while the mine is running because of the exorbitant rents they can charge the miners, but buy the property at $1 million and you'd better not still be hanging onto it when the mine closes or you will be guaranteed to lose a small fortune.

You are right int he case of mining but there are other reasons a town can go off the map. Kingaroy (where joh lived) has disappeared off the map now because of subsequent governments getting rid of the transport (trains). A town my mother used to live in died when the abattoir closed. Nobody can predict all that stuff and not everyone can afford to buy in the city. In fact almost nobody can nowadays.
SOB

only 80%+ of buyers...

damn, you are stupid.

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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."

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longweekend58

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Re: House Prices on the move... UP!
Reply #82 - Feb 13^th, 2013 at 5:19pm

John Smith wrote on Feb 13^th, 2013 at 3:16pm:

I'm not so sure why you are so against negative gearing (by the way, did you write that article. .. good opinion poece, low of facts) ...are you against all forms of tax deductions?

our tax system is based on being able to claim expenses use to aquire an income as tax deductions ... if you tax the income, you claim the expenses incurred, simple .... do you claim your wages are higher because of the claims you make against your income?

liquid_nails is against all types of tax deductions that he personally does not receive. that's pretty much his criteria.

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AUSSIE: "Speaking for myself, I could not care less about 298 human beings having their life snuffed out in a nano-second, or what impact that loss has on Members of their family, their parents..."

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Sir lastnail

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Re: House Prices on the move... UP!
Reply #83 - Feb 13^th, 2013 at 5:49pm

longweekend58 wrote on Feb 13^th, 2013 at 5:16pm:

Carl D wrote on Feb 13^th, 2013 at 1:33pm:

Quote:

no that is 850,000 in mortgage and rental stress !!

The thing is what would happen if there are no tax incentives such as negative gearing etc for landlords to hoard properties which essentially denies them to people who genuinely want to own one ? House prices would plummet because genuine buyers would no longer compete with hoarders and speculators who are willing to pay more !!

I wonder what happened to the suggestion that was made several years ago that laws should be passed to allow a person to own one residential property and only one investment property?

Saw it in the newspaper, I think.

Went back into the 'too hard' basket, I guess?

And, since a lot of politicians also own investment properties I would have been very surprised to see it happen.

because most landlords own more than one property which would mean that rental properties would dry up overnight. Did you not think that?

read the article properly f.ckhead.

Quote:

It was not true that the brief suspension of the practice by former treasurer Paul Keating in the mid-1980s led to a surge in rents. Nine out of 10 negative-geared properties were existing units or houses rather than new ones. Rather than boost the supply of properties negative gearing pushed up the price of existing ones.

"The US has never had negative gearing yet they have never had a rental vacancy rate of less than 5 per cent. We have negative gearing and we have never had a vacancy rate in rental properties of over 5 per cent," Mr Eslake said.

How does some hoarder buying an investment property built in the 1920's create more rental properties ? Just more lies from greed incorporated Sad

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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

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Sir lastnail

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Re: House Prices on the move... UP!
Reply #84 - Feb 13^th, 2013 at 5:51pm

longweekend58 wrote on Feb 13^th, 2013 at 5:19pm:

John Smith wrote on Feb 13^th, 2013 at 3:16pm:

I'm not so sure why you are so against negative gearing (by the way, did you write that article. .. good opinion poece, low of facts) ...are you against all forms of tax deductions?

our tax system is based on being able to claim expenses use to aquire an income as tax deductions ... if you tax the income, you claim the expenses incurred, simple .... do you claim your wages are higher because of the claims you make against your income?

liquid_nails is against all types of tax deductions that he personally does not receive. that's pretty much his criteria.

no I'm just against ones on non productive assets which just serve to inflate prices, national debt and nothing else Sad

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« Last Edit: Feb 13^th, 2013 at 5:58pm by Sir lastnail »

In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

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aquascoot

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Re: House Prices on the move... UP!
Reply #85 - Feb 13^th, 2013 at 5:54pm

with negative gearing still existing and probably going to go on for a while,
a good strategy is to buy a place with the first home buyers grant added in .
live in it for 6 months...this should make it stamp duty exempt which saves you about $20,000.
then move back home with mum and dad and rent it.
(you now have an income of about say $400 a week going into the mortgage.).
put as much of you wage as you can into the mortgage (hopefully mum and dad might let you stay for free in exchange for mowing or something).
if you can, get permission from the tenants to go over on weekends and redo carpets, repaint it, fix up the landscaping.
these items now become tax deductions. your interst on the mortgage is now tax deductible., you are paying it off twice as fast (possibly more once you get over the interest hump).

only downside is you will accrue some cgt liabilities if you ever sell it. simple, never sell Wink

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Sir lastnail

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Re: House Prices on the move... UP!
Reply #86 - Feb 13^th, 2013 at 6:01pm

aquascoot wrote on Feb 13^th, 2013 at 5:54pm:

with negative gearing still existing and probably going to go on for a while,
a good strategy is to buy a place with the first home buyers grant added in .
live in it for 6 months...this should make it stamp duty exempt which saves you about $20,000.
then move back home with mum and dad and rent it.
(you now have an income of about say $400 a week going into the mortgage.).
put as much of you wage as you can into the mortgage (hopefully mum and dad might let you stay for free in exchange for mowing or something).
if you can, get permission from the tenants to go over on weekends and redo carpets, repaint it, fix up the landscaping.
these items now become tax deductions. your interst on the mortgage is now tax deductible., you are paying it off twice as fast (possibly more once you get over the interest hump).

only downside is you will accrue some cgt liabilities if you ever sell it. simple, never sell Wink

and hope that some foreign company gives your kid a job because no c.nt here will with all of the money sunk into property deals and nothing else. Sad

what a bunch of wally brains here. No wonder we have to keep paying some foreign car companies to make cars for us Sad

Australia is no germany by any stretch of the imagination Sad

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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

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Carl D

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Re: House Prices on the move... UP!
Reply #87 - Feb 13^th, 2013 at 6:42pm

longweekend58 wrote on Feb 13^th, 2013 at 5:11pm:

Carl D wrote on Feb 12^th, 2013 at 5:37pm:

longweekend58 wrote on Feb 12^th, 2013 at 10:49am:

so why at 80 had she not already bought and paid for her own home? if u take the advice of the lieks of stupid-nail or pansi then you will rent all the time and end up like your aunt. If you take more traditional advice and buy a home when you are younger then when you are old you dont need to rent at all and you can even reverse mortgage or downsize and enjoy the cash.

Well, if you can provide us with a working time machine to take us back about 40 years I'm sure we'll be able to make good use of your advice.

But, back in the real world, we have to make the best of what we have. Paying $177 a week rent as we do now sure beats paying $450 a week (that's the average rent here in Perth at the moment, btw).

I worked out some time ago that I'm better off living in public housing paying a quarter of my income (which, in WA public housing at the moment is $430 a week before tax) than I would be working full time and paying private rent.

That means I work about 20 hours a week with lots of spare time to take care of my aunt and take her out, etc.

At least if anything happens to me, my elderly aunt will have an affordable place to live in. Her pension wouldn't even cover the cost of the cheapest private rental in Perth right now. And, we're not at the mercy of private landlords who might decide to kick you out because they want to sell the place, etc.

its the argument of someone with low ambitions. you don't need a time machine. 60 years ago your aunt should have had the brains everyone else dd and bought a house for her retirement. Instead who probably wasted her money or followed dopey advice like yours Now she is literally paying for it when should could already own her home and be hundreds of thousands of dollars better off. that's what comes from following dopey advice like lastnail's.

lol.

What "dopey" advice are talking about regarding advice I gave to my aunt?

The only advice I gave her was that we sign up for public housing in December 2008 which turned out to be very good advice otherwise we'd now be paying $400+ a week in rent and be at the mercy of private landlords who might decide to kick you out at the end of the current lease.

And, in case you haven't noticed, a lot of leases nowadays tend to be 6 months not 12 so the landlord can increase the rent more often.

At least we now have cheap rent and a secure place to live. 83 year old pensioners like my aunt don't enjoy the prospect of having to move house every few years.

The only way either of us could ever afford to buy a house these days would be if we won lotto.

As I've already said, if anything happens to me, she'll be looked after. And, when I retire in 9 years time, I will also have a secure and affordable place to live in.

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Bobby.

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Re: House Prices on the move... UP!
Reply #88 - Feb 13^th, 2013 at 6:45pm

aquascoot wrote on Feb 13^th, 2013 at 5:54pm:

with negative gearing still existing and probably going to go on for a while,
a good strategy is to buy a place with the first home buyers grant added in .
live in it for 6 months...this should make it stamp duty exempt which saves you about $20,000.
then move back home with mum and dad and rent it.
(you now have an income of about say $400 a week going into the mortgage.).
put as much of you wage as you can into the mortgage (hopefully mum and dad might let you stay for free in exchange for mowing or something).
if you can, get permission from the tenants to go over on weekends and redo carpets, repaint it, fix up the landscaping.
these items now become tax deductions. your interest on the mortgage is now tax deductible., you are paying it off twice as fast (possibly more once you get over the interest hump).

only downside is you will accrue some cgt liabilities if you ever sell it. simple, never sell Wink

Why is the interest now tax deductible?
I never heard of that.

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aquascoot

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Re: House Prices on the move... UP!
Reply #89 - Feb 13^th, 2013 at 6:51pm

Bobby. wrote on Feb 13^th, 2013 at 6:45pm:

aquascoot wrote on Feb 13^th, 2013 at 5:54pm:

with negative gearing still existing and probably going to go on for a while,
a good strategy is to buy a place with the first home buyers grant added in .
live in it for 6 months...this should make it stamp duty exempt which saves you about $20,000.
then move back home with mum and dad and rent it.
(you now have an income of about say $400 a week going into the mortgage.).
put as much of you wage as you can into the mortgage (hopefully mum and dad might let you stay for free in exchange for mowing or something).
if you can, get permission from the tenants to go over on weekends and redo carpets, repaint it, fix up the landscaping.
these items now become tax deductions. your interest on the mortgage is now tax deductible., you are paying it off twice as fast (possibly more once you get over the interest hump).

only downside is you will accrue some cgt liabilities if you ever sell it. simple, never sell Wink

Why is the interest now tax deductible?
I never heard of that.

once youre renting it , it becomes an investment prroperty and so interest, council rates and refurbishing all becomes deductible.
doing it up is a bit of a grey area, putting in a new kitchen or bathroom may even be tax deductible (while you are renting it) if you replace like for like. you couldnt replace say a really old kitchen with granite benchtops and german appliances but its quite amazing what you can claim.

for example if you had a rental property in another city, you may even be able to claim airfares once or twice a year to inspect it (and have a holiday at the same time)

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