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

John Smith

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Re: House Prices on the move... UP!
Reply #90 - Feb 13^th, 2013 at 7:10pm

Carl D wrote on 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.

thats why youu need to consider these things before it's to late

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.

leases are shorter because no one has long term security anymore. .. jobs that you stay at for 20 yrs are gone and people aren't willing to commit long term.

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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longweekend58

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Re: House Prices on the move... UP!
Reply #91 - Feb 13^th, 2013 at 7:54pm

Sir lastnail wrote on 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

conveniently forgetting that americans can claim mortgage interest as a tax deduction which is nto that dissiimilar to negative gearing but without the loss input.

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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 #92 - Feb 13^th, 2013 at 7:58pm

Carl D wrote on 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.

what I said is that she is - like - you - paying for her past mistakes in not buying her own home. When Im her age I will own my own home and probably downsize and take $300,000 in cash as the difference. I will live rent-free while she has to pay continually and has nothing. it has been just a lifetime of bad financial decision-making.

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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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Bobby.

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Re: House Prices on the move... UP!
Reply #93 - Feb 13^th, 2013 at 7:58pm

aquascoot wrote on 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)

Thanks for the heads up.

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Sir lastnail

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Re: House Prices on the move... UP!
Reply #94 - Feb 13^th, 2013 at 8:48pm

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.

it's only deductable if it's an investment. If you want to live in it as a normal necessity of life then you don't get these concessions. The corrupt system favours the greedy and not the needy. Go figure !! Of course the resident christian here favours the greedy 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 #95 - Feb 13^th, 2013 at 8:57pm

longweekend58 wrote on Feb 13^th, 2013 at 7:54pm:

Sir lastnail wrote on 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

conveniently forgetting that americans can claim mortgage interest as a tax deduction which is nto that dissiimilar to negative gearing but without the loss input.

It is not the same at all !!

Those people in the US who are claiming the deductions are buying the joint to live in and not hoarding and renting them out like they do here. A big big difference !!

The system here is obviously corrupt because it favours the greedy over the needy 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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Frances Gold Member Offline Australian Politics Posts: 3577 In a Castle in the Hills Gender:	Re: House Prices on the move... UP! Reply #96 - Feb 13^th, 2013 at 8:59pm So far we've put in offers on two properties but we missed out on both of them. We're going looking at more this weekend...
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John Smith

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Re: House Prices on the move... UP!
Reply #97 - Feb 13^th, 2013 at 9:49pm

Sir lastnail wrote on Feb 13^th, 2013 at 8:48pm:

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.

it's only deductable if it's an investment. If you want to live in it as a normal necessity of life then you don't get these concessions. The corrupt system favours the greedy and not the needy. Go figure !! Of course the resident christian here favours the greedy Sad

if it's not an investment it's not generating income ... what do you claim the interest payments against?

your comment about a corrupt system favouring the greedy is an absolute load of rubbish ... you sell your place of residence , and make $1m profit on the purchase price and you'll pay ZERO capital gains tax .. the investor however has to pay tax on any profit ... you're trying to make it sound like the govt. throws money at you for having an investment property .. not so, it's actually a risky proposition ... if you rely on your rent to make the mortgage repayments and get a tenant who demolishes the place, the owner also risks losing his family home. But with risk comes reward .. if you think it's so easy I suggest you buy so that you too can rake in a fortune .. I bet you're to gutless ... and that's why when you're 80 you too will be complaining that you cannot afford the rent.

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John Smith

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Re: House Prices on the move... UP!
Reply #98 - Feb 13^th, 2013 at 9:52pm

Frances wrote on Feb 13^th, 2013 at 8:59pm:

So far we've put in offers on two properties but we missed out on both of them. We're going looking at more this weekend...

depending on where you are, markets are back on the increase ... you can't just sit on your hands and wait for the seller to get desperate, that being said, there are still a lot of bargains out there ....

I believe you were looking in Sydney .. I'm not very current on the Sydney market at the moment but I'm pretty sure my statement still stands in Sydney. Good hunting.

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Carl D

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Re: House Prices on the move... UP!
Reply #99 - Feb 14^th, 2013 at 1:24am

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

what I said is that she is - like - you - paying for her past mistakes in not buying her own home. When Im her age I will own my own home and probably downsize and take $300,000 in cash as the difference. I will live rent-free while she has to pay continually and has nothing. it has been just a lifetime of bad financial decision-making.

Past mistakes... past mistakes... "shoulda coulda woulda"... blah blah blah...

Firstly, I do not have the time or inclination to explain my life story to you or anyone else.

With that said... OK, Mr. Big Financial Advisor (lol)... let's have it... what advice do you have for me about being able to afford to buy my own home RIGHT NOW. Not decades ago but RIGHT NOW.

1. I'm 55 years of age with no other family here except my 83 year old aunt.

2. If I had a full time job with my present qualifications I would probably earn no more than $40,000-$45,000 per annum. Is that enough to get a home loan? Nah... didn't think so.

Mind you, I'm still laughing about what happened after I finished my last full time job at the end of 2006 (the place closed). I went to the bank to see them about something and while I was there I started discussing houses and house prices and the bank lady (who I'd only told 5 minutes earlier that I was out of work) said "Do you need a home loan? We can arrange one for you". Grin

3. I have about $20,000 in savings and about $30,000 in superannuation so far.

4. I am taking care of my abovementioned elderly aunt and she has NO INTENTIONS of EVER moving house again. We've moved twice since 2005.

I'm starting to think that all this wonderful financial advice (lol) you've been giving people here over the years has mainly consisted of telling them what they should have done years ago and the mistakes that you think they've made.

While you're pondering all that I'll just keep working on that time machine...

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« Last Edit: Feb 14^th, 2013 at 1:39am by Carl D »

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Sir Spot of Borg

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Re: House Prices on the move... UP!
Reply #100 - Feb 14^th, 2013 at 4:53am

longweekend58 wrote on Feb 13^th, 2013 at 7:58pm:

Carl D wrote on 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.

what I said is that she is - like - you - paying for her past mistakes in not buying her own home. When Im her age I will own my own home and probably downsize and take $300,000 in cash as the difference. I will live rent-free while she has to pay continually and has nothing. it has been just a lifetime of bad financial decision-making.

Rates are exorbitant and all those other fees and levies they stick on the rates makes it almost as much as rent. If you have a unit it is more than rent because of the body corporate. It is only going to get worse.

SOB

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I'm a
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- edited by some unethical admin - you think its funny? - its a slippery slope

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Sir Spot of Borg

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Re: House Prices on the move... UP!
Reply #101 - Feb 14^th, 2013 at 4:54am

Sir lastnail wrote on Feb 13^th, 2013 at 8:57pm:

longweekend58 wrote on Feb 13^th, 2013 at 7:54pm:

Sir lastnail wrote on 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

conveniently forgetting that americans can claim mortgage interest as a tax deduction which is nto that dissiimilar to negative gearing but without the loss input.

It is not the same at all !!

Those people in the US who are claiming the deductions are buying the joint to live in and not hoarding and renting them out like they do here. A big big difference !!

The system here is obviously corrupt because it favours the greedy over the needy Sad

there would be no "hoarding" if the councils would let ppl build.

SOB

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Whaaaaaah!
I'm a
Moron!

- edited by some unethical admin - you think its funny? - its a slippery slope

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Sir lastnail

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Re: House Prices on the move... UP!
Reply #102 - Feb 14^th, 2013 at 10:23am

Carl D wrote on Feb 14^th, 2013 at 1:24am:

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

what I said is that she is - like - you - paying for her past mistakes in not buying her own home. When Im her age I will own my own home and probably downsize and take $300,000 in cash as the difference. I will live rent-free while she has to pay continually and has nothing. it has been just a lifetime of bad financial decision-making.

Past mistakes... past mistakes... "shoulda coulda woulda"... blah blah blah...

Firstly, I do not have the time or inclination to explain my life story to you or anyone else.

With that said... OK, Mr. Big Financial Advisor (lol)... let's have it... what advice do you have for me about being able to afford to buy my own home RIGHT NOW. Not decades ago but RIGHT NOW.

1. I'm 55 years of age with no other family here except my 83 year old aunt.

2. If I had a full time job with my present qualifications I would probably earn no more than $40,000-$45,000 per annum. Is that enough to get a home loan? Nah... didn't think so.

Mind you, I'm still laughing about what happened after I finished my last full time job at the end of 2006 (the place closed). I went to the bank to see them about something and while I was there I started discussing houses and house prices and the bank lady (who I'd only told 5 minutes earlier that I was out of work) said "Do you need a home loan? We can arrange one for you". Grin

3. I have about $20,000 in savings and about $30,000 in superannuation so far.

4. I am taking care of my abovementioned elderly aunt and she has NO INTENTIONS of EVER moving house again. We've moved twice since 2005.

I'm starting to think that all this wonderful financial advice (lol) you've been giving people here over the years has mainly consisted of telling them what they should have done years ago and the mistakes that you think they've made.

While you're pondering all that I'll just keep working on that time machine...

yes longloser always talks about the one property purchase he made in the past as though it applies now. My parents paid 5000 pounds for their joint in the 50's and now it's worth over 2 million !! To me it's not worth a tenth of that just to get a roof over your head !!

Successive governments have done nothing to curtail house prices. In fact they have done everything to pump them up and that includes medaling in the background to stop prices from crashing. Negative gearing scams, first home buyers scams, changes to foreign investment rules etc are all designed to keep the bubble pumped up and make people pay through the nose. Little wonder there are now 850,000 in mortgage and rental stress Sad

So like you say what great financial words of wisdom does longloser have for anyone today when buying a roof over their head ? Perhaps a time machine might be handy Grin

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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 #103 - Feb 14^th, 2013 at 10:33am

John Smith wrote on Feb 13^th, 2013 at 9:49pm:

Sir lastnail wrote on Feb 13^th, 2013 at 8:48pm:

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.

it's only deductable if it's an investment. If you want to live in it as a normal necessity of life then you don't get these concessions. The corrupt system favours the greedy and not the needy. Go figure !! Of course the resident christian here favours the greedy Sad

if it's not an investment it's not generating income ... what do you claim the interest payments against?

your comment about a corrupt system favouring the greedy is an absolute load of rubbish ... you sell your place of residence , and make $1m profit on the purchase price and you'll pay ZERO capital gains tax .. the investor however has to pay tax on any profit ... you're trying to make it sound like the govt. throws money at you for having an investment property .. not so, it's actually a risky proposition ... if you rely on your rent to make the mortgage repayments and get a tenant who demolishes the place, the owner also risks losing his family home. But with risk comes reward .. if you think it's so easy I suggest you buy so that you too can rake in a fortune .. I bet you're to gutless ... and that's why when you're 80 you too will be complaining that you cannot afford the rent.

Read the article properly. You want to buy an non productive asset but you want the tax payer to make up for any downside Sad

What sort of risk is that ?

Quote:

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."

The government minimizes your risk and helps you out with corporate welfare. It distorts the market with negative gearing scams, first home buyers scams, changes to the foreign investor rules, bank depositors guarantees etc all designed to keep a floor under house prices to stop them from collapsing. That's why house prices are 7 to 9 times average income in this country. Where is the risk ??

How about a first share buyers grant ? How come you don't see those ?

And speaking of risk how about you invest in a productive asset for a change instead of being a parasite on peoples right to a decent of standard of living. You wouldn't have the balls to invest in anything else because the government doesn't help you out !!

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« Last Edit: Feb 14^th, 2013 at 10:55am 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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John Smith Gold Member Offline Australian Politics Posts: 74520 Gender:	Re: House Prices on the move... UP! Reply #104 - Feb 14^th, 2013 at 12:01pm Sir lastnail wrote on Feb 14^th, 2013 at 10:33am: What sort of risk is that ? if there was no risk you would have done it ages ago ...
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