There is always a chance of IR movements above 9%, but its a good start to cater for around that level (3% above market).
External factors such as the AUD depreciating rapidly(not if but when), chinese currency fix adjusting/floating, or other event have a habit of occurring every 5 years or so.
Dont just assume continued growth and stable IR’s.
dmichie, did you get sick of using your normal username?
ssab has an amazing writing style comparable to yours.
Robert Bou-Hamdan
Mortgage AdviserUS: top rate of 35% starting at $315K
I need to jump in here and explain how useless this statistic is, as it is often quoted. Fact is US pays FAR more tax than Australia. California holds closer to 1/4 than 1/5 of the US population and has state tax capping at over 10%. NY is > 7% above 100k.
Then there is the social security tax of 6.2%. A flat tax paid on ALL income, even the US equiv of the tax free threshold. But here is a great one, all moneys above ~80k are exempt. A sort of upside down tax bracket. Comon this is America, can’t have the rich pay for the poor!!! [baaa]
And even after that we still have roughly the same medicare cost 1.45%.
Finally, just because they figure they can get away with it, each state can charge additional income taxes. Again for California, there are two:
State Disability Insurance
State Unemployment Insurance
Which total to 1.08%It’s not as simple as adding these numbers together due to the social security payment cap, but if you were to, for California it is ~53%
and if you take social security out it is ~47%.An all inclusive example: on 58k (chosen because it is the current kick-in for 42% in Aus) Australia pays ~13k, the US 18k! Yes 5k more on just 58k. The myth that US pays less tax is busted
Of course if you live in Nevada or Alasksa you end up paying less, but you can guess the big industries in each of those (gambling, energy).Yup the Aus dollar is worth less, but many domestic goods and services (incl. rent) are nominally the same or cheaper.
My wife and I are returning, end of this year, and we will have far superior AUD savings ability on Australian salaries, paying Australian taxes. Alas we sacrifice our snow addiction [wacko]. But kids need grandparents.
And keep the thread up guys
I’m actually inclined towards dmichies opinions, but it is always valuable to read both sides.dmichie, did you get sick of using your normal username?ssab has an amazing writing style comparable to yours.
Sorry to disappoint but no.
dmichie, did you get sick of using your normal username?
ssab has an amazing writing style comparable to yours.Not me. Promise.
US: top rate of 35% starting at $315KI need to jump in here and explain how useless this statistic is, as it is often quoted. Fact is US pays FAR more tax than Australia. California holds closer to 1/4 than 1/5 of the US population and has state tax capping at over 10%. NY is > 7% above 100k.
Good point and absolutely correct. The 35% top rate is a federal tax. If you live in a low tax state (like Texas) this might be all you pay, but in NY and CA there are so many state and local taxes you end up paying a lot more. Thank God Australian states can’t impose income tax!
Mortgage Adviser, I apologise again for posting an informative link, but there is a very good comparision of tax systems in different countries here:
http://www.house.gov/jec/tax/04-20-04.pdfNote the “Forbes Index” for each country, which is the amount of tax a single person on 100,000 Euros would pay:
Japan…….24.90%
USA………28.93%
UK……….33.03%
Spain…….36.67%
Canada……38.07%
France……40.75%
Australia…41.57%
Italy…….41.95%
Germany…..50.47%There is no need to apologise to me. I have no problem with ‘informative’ links.
I take issue with the absence of impartiality and ongoing posting of negative articles and commentary in an attempt to achieve your desired goals – ie: lower property prices on the northern beaches and a decreasing Australian dollar. This has no regard for the ‘battlers’ (who you keep referring to) who already have a property and will lose the lot just so you can make more money and buy a cheaper property.
Robert Bou-Hamdan
Mortgage AdviserI take issue with the absence of impartiality and ongoing posting of negative articles and commentary in an attempt to achieve your desired goalsThese articles can only be seen as “negative” if its in your interest to see the house prices continue to rise. From a first home owner’s perspective lower house prices can only be a postive thing.
I’m actually inclined towards dmichies opinionsSeems like more and more people are agreeing with me [biggrin]
Originally posted by dmichie:These articles can only be seen as “negative” if its in your interest to see the house prices continue to rise. From a first home owner’s perspective lower house prices can only be a postive thing.
They are seen as negative because they potray a negative economic outlook. To yourself, they are seen as positive because they mean more profit on your export business and a cheaper purchase price for your PPOR. I am happy to change the term ‘negative’ economic outlook to ‘selfish’ economic outlook if you like.
First home owner’s make up a very small part of property owners and those wanting to buy. From the majority’s persepctive, declining prices can only be a ‘negative’ thing. This is a very simple concept.
I’m actually inclined towards dmichies opinionsSeems like more and more people are agreeing with me [biggrin]
WOW!!!
One whole person has publicly agreed with you. Lets all be ‘selfish’ then!
Robert Bou-Hamdan
Mortgage AdviserRobert
I don’t thing that posting a link to a newspaper article on this forum is going to have much impact on the state of the Australian Property market.
If any individuals decision to buy or sell based on the impact of reading one article , then they probably don’t know what they’re doing and shouldn’t be buying anyway.
I think that it’s worthwhile having links to any property related article. Then we can make up our own minds.
See Change
I agree totally although I believe positive articles should also be included with the numerous negative articles that have been posted so a more informed and balanced decision can be made.
Robert Bou-Hamdan
Mortgage AdviserI agree totally although I believe positive articles should also be included with the numerous negative articles that have been posted so a more informed and balanced decision can be made.Go ahead, post some “positive” articles then. I’m not stopping you.
One whole person has publicly agreed with you. Lets all be ‘selfish’ then!Lemme see, AUSPROP and ANIBUS were in general agreement with me on tax reform. foundation, obiwan, SeeChange, baloo, ssab, carlin (amongst others) seem pretty bearish on property. That’s not bad tally for a property investment forum which you’d expect to be pretty bullish on property.
The only person that doesn’t agree with me on every single issue is YOU. We must have some common ground surely? Are you in favour of state government stamp duty?
dmichie, I could not be bothered spending my time searching for, reading and then posting articles to support my arguments. This is not my chosen field so I consider it too time consuming. I am content with the information I receive myself to formulate my own opinions and do not feel the need to share them publicly in this area through a multitude of supporting evidence.
I think you will find that all those people you mentioned do not share your ‘doom and gloom’ views but do share your view of the economy going backwards in some way. I certainly don’t have a bearish view (for the millionth time) but I disagree with most of your comments because I know your motives. You are not impartial!
I am also against State Government Stamp Duty.
Regarding common ground, I do agree you are a champion for succeeding in your chosen business due to its highly competitive nature. Don’t let this go to your head though.
It seems that you will continue posting what I consider to be propaganda until I agree with you. If I just say I agree with you, will you give up on this constant negative posting campaign of yours regarding the economy and property prices?
Robert Bou-Hamdan
Mortgage AdviserI am also against State Government Stamp Duty.At last we agree on something!
It seems that you will continue posting what I consider to be propaganda until I agree with you. If I just say I agree with you, will you give up on this constant negative posting campaign of yours regarding the economy and property prices?Seems like you’re trying to get rid of me. It would be a dull forum if you did.
As for propaganda, we’ve endured a decade of propaganda from the property industry. How many get-rich schemes have we seen in recent years? How many investment property books are there? How many property seminars have there been? How many home renovation shows are there?
My tiny contribution going the other was is hardly going to make a dent in the mountain of propaganda from the real estate industry.
Originally posted by dmichie:I am also against State Government Stamp Duty.At last we agree on something!
I hope that excites you.
Seems like you’re trying to get rid of me. It would be a dull forum if you did.It seems like you interpreted this well following my comment about being happy to discuss other topics with you. This one has been done to death and is getting very old and repetitive.
Robert Bou-Hamdan
Mortgage AdviserOriginally posted by The Mortgage Adviser:I’m actually inclined towards dmichies opinionsSeems like more and more people are agreeing with me [biggrin]
WOW!!!
One whole person has publicly agreed with you. Lets all be ‘selfish’ then!
Let it be on record that I wholeheartedly agree with every post I recall reading from dmichie.
Now Robert, why is it any more selfish to wish for house prices to fall (in order to make money) than it is to wish for house prices to rise (in order to make money)?
Once again, this seems either illogical or hypocritical or both.I take issue with the absence of impartiality and ongoing posting of negative articles and commentary in an attempt to achieve your desired goals – ie: lower property prices on the northern beaches and a decreasing Australian dollar.Can one person can really do that? [blink] Wow, what power.
Anyhoo, F.[cowboy2]
Foundation, I am not wishing for either. I just want to see impartial commentary regarding what is actually going on instead of a one-sided propaganda fest in this forum from someone with alterior motives.
No, I do not believe one person can change the economy. However, I do believe dmichie is trying to have a further negative impact to obtain personal financial benefit. I never said he would succeed but was merely pointing out the motives.
Robert Bou-Hamdan
Mortgage AdviserI reckon that’s about the tenth time you’ve mentioned “alterior motives” and “personal financial benefit”. You’ve also accused of posting using aliases (?!)
Nice.
I admit I vent my frustration at high property prices (and the sharks that inhabit the real estate industry) in this forum, but to think that I hope to somehow influence the property prices by posting here is absurd, and I hope other readers give it all the credibility it deserves.
BTW, what possible alterior motives could I have for discussing taxation reform? Perhaps I am trying to influence the government via this forum?! Its a ludicrous proposition.
David, we are going in circles.
I think I have explained enough.
I am happy to discuss another topic with you.
Until then, ciao.
Robert Bou-Hamdan
Mortgage Adviser
Of course if you live in Nevada or Alasksa you end up paying less, but you can guess the big industries in each of those (gambling, energy).
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