ummester wrote:
You'd say – Australia is different.I'd say – Australia stands alone in the world as not having a housing correction

No, I don't know enough to say 'Australia is different'. Not that smart unfortunately. I only know enough to say that a housing price crash has yet to occur in Australia. A 'correction' however, has already…[Read more]

Shape wrote:
For me most, if not 95% of new property are over priced and targeted for "owners" and not for investors. Regards Michael

Fair call. Just thought that, for the purposes of this discussion, I should at least point to the possibility, rather than ruling out the '+ve part' for brand-new properties entirely.

Be_Rich_By_2012 wrote:
I currently have the 50K in a usaver account which makes me $200 a month or so, I need more than that, I am looking for something that generates $500 a month or more.

Can't help with the rest, but I saw this statement and it raised my eyebrows a bit. I'm not good with numbers, but assuming your $50K is earning you $200…[Read more]

Shape wrote:
Fword- i think you mean one of the advantage of a brand new property..dont know abt the +ve part

Well, I'm no accountant, so I'm getting out of my depth here. But consider the following simplified example on a rental property:Interest on loans (per annum): $20,000Total rental income (per annum): $18,000Shortfall (per annum):…[Read more]

ALF1 wrote:
Perhaps I should re-phrase point 1 as Buy brand new to maximise tax deductions OR buy what you can afford. But, BUY SOMETHING!

Yes, but what you say about buying brand new has a lot of sense in it. Depreciation benefits are one of the means of getting a positively geared property.

ummester wrote:
Our debate is circular fword – but you are a good sport about it:)The government isn't solely to blame. There are so many little bits and pieces that have led to house prices here and elsewhere becoming overvalued.Other than land release, CGT removal and government stimulus, the main drivers of house prices were easy credit and…[Read more]

ummester wrote:
ok fword, you tell me what else is expensive?

Let's consider the meaning of the word 'overpriced' versus the meaning of 'expensive'.Now my English ain't that flash, but here's what a Google search has to say about the meanings of each:Overpriced- 'Charge too high a price for', or 'priced higher than what it is really…[Read more]

First of all, I'd say that your level of motivation is excellent. You have the right frame of mind and that's a very good start.It may have been mentioned above, but perhaps you could start by investing in shares. I'm not implying whether NOW is a right or wrong time to be in the sharemarket, however it's a very good start. With baby steps, even…[Read more]

Now I don't want this to degenerate into a 'housing affordability' debate again. There's been heaps on this forum and I'm beginning to tire even responding to such topics, but…

ummester wrote:
It is the most overvalued consumer commodity realative to general inflation at this point in time.

No, to me at least, housing is not overvalued,…[Read more]

ummester wrote:
So, if rates are not high and the retail sector and other parts of the economy are sufferring, is it just possible that houses cost too much ATM?

Haha, the ol' house prices debate again, and you're mighty quick to jump into it.In my opinion, it's simple really: raise interest rates too quickly against a backdrop of a recent GFC…[Read more]

Sometimes I cynically (and humorously) think the RBA increased interest rates ONLY to combat the explosive housing market (under the guise of trying to control inflation) and bring more peace by cooling it down. They have certainly achieved that, at great cost to the retail sector of course. Edgy local retailers then go on to blame online…[Read more]

ummester wrote:
fWord,I write fiction and am trying to get puplished as a fictional author. Reading about and commenting on the Australian property market is more a hobby which rises from what I suppose is a genuine concern over Australia's future. Though I like thinking about it, reading about it and posting on it, it's way too dry to dedicate…[Read more]

SmartGenY wrote:
At the end of the day the reason why I joined this forum is not to say Property Investing is wrong or doomed, as I have been perusing it for a few years. It was to give a genY perspective rather than let the belief flourish that we are all lazy whiners looking for spiteful lazy gains.

Then it would seem that you are a minority.…[Read more]

SmartGenY wrote:
I feel this forum has a real us vs them attitude. "Us" the financially responsible, hard working property investors vs "Them" the lazy, free loading, whining have nots.

Absolutely spot-on. On the other hand, the FHB have the same attitude: 'us' the struggling, cheated and frustrated FHB who cannot afford a thing, vs 'them' the…[Read more]

ummester wrote:

fWord wrote:
Maybe so. But perhaps they'd prefer to bad-mouth something that they cannot afford, rather than to put in the hard yards and work towards it.

This is an interesting comment.I agree that people should work towards the things they want but they should do that first buy saving a reasonable percentage of the purchase…[Read more]

ummester wrote:
Rents didn't sore during the depression:) You are reading spruik in a book, it seems.

Haha, good one. But a spruik in a book, from an author who actually dared to get themselves published (rather than sit around here as a nameless face, spewing endlessly), is far better than 'stuff' from nameless people who are calling them…[Read more]

ummester wrote:
Property in Australia crashed big time in the 1890s (which is within 175 years) and it also crashed to lesser degree in the 30s.

My knowledge doesn't go back that far to the 1890s. However whether there was a 'slide' or a 'crash' in the 30s is subject to debate. Prices didn't 'crash' 50-, 40-, or even 30%, if I remember…[Read more]

ALF1 wrote:
Instead of all the doom & gloom why not provide this forum with solutions or alternatives with your acute and astute financial brain?

Good point. Furthermore, Matt should write a book with all the predictions in the first post and get it published. It'd be a bestseller when these predictions start to play out.

ummester wrote:
I'm not trying to claim that removing NG will fix the problem – just that removing NG won't create the nightmare rental scenario that it has been politically expediant to try and sell as the truth for the past quater decade.

Apologies, I wasn't referring to you as an individual. I'm referring to the individuals who preach 'end…[Read more]

ummester wrote:
fword,Singapore has something related to housing requirements that Australia does not – an actual land shortage.Oh, Canberra has the 99 year lease thing also. Being landlocked, ACT can argue it has land shortages.And ultimately, re the FHB strike, what does it matter? If the property market is so stable – what difference will it…[Read more]