No, if you believe tenants don't spend any money on the garden, you are incorrect.
Nobody needs to 'worry' about extensions/renovations. They're a choice. If people want to do them, fine. If not, also fine.
Yes it is.
Strawman argument.
Are you now claiming you have spent $ 0 on any expense for your rental property related to the lawn, garden or fence.... ever ?
No one needs to worry about ownning a property... its a choice... however people do it none the less... they also spend money on reno's, repairs and extensions as well... they are costs they incur as lart of holding the property... despite your shrill cries... it's a reality.
Go back and read... the rental yield is offset against holding and other costs of property .. you might not want to be talking about offsets, but whe n you responded to my post, we were.
You were happy to talk ot the holding costs of gold... well the holding costs of property exist also
Are you now claiming you have spent $ 0 on any expense for your rental property related to the lawn, garden or fence.... ever ?
Strawman. Are you now claiming renters spend $0 on any expense related to the lawn or garden... ever?
Quote:
No one needs to worry about ownning a property... its a choice... however people do it none the less... they also spend money on reno's, repairs and extensions as well... they are costs they incur as lart of holding the property
Relevance?
Quote:
Go back and read... the rental yield is offset against holding and other costs of property
Holding costs are a tiny fraction of the rental income.
yup, I read it and it still has not changed... "You have only said it makes up a small portion of your wealth. You are slippery that way. "
Why don't you explain to us just how me being slippery 'in that way' somehow does not relate to me not disclosing just how much of my wealth is in gold... I would be amused to see your explanation
Trollie
Because I'm not a snob about where my IP's are I'm now automatically a slum lord according to you.
Well I am no snob, but when I read " all I care about is the money it pays me"... it reeks of slum lord... so $$$ is all you care about... nice
Trollie
Simple answers for simple minds I guess.
Yes, that sums up your posts quite well indeed.
Shadow
8 Dec 2015, 07:44 PM
Shady
Strawman. Are you now claiming renters spend $0 on any expense related to the lawn or garden... ever?
Comprehension is not your strong point, nor is honest representation of others posts.
I am claiming that the yield is offset by holding and upkeep costs... you seem to want to deny it...
You have claimed that landlords do not have to pay anything towards the gardening/landscaping.... which is why you did not include it in your holding costs of the IP's... now you are backing away from that claim with shrill strawman claims.... well done shady... your usual performance.
Shady
Relevance?
Let me explain.
Many people buy IP's and spend money on them to improve the yield... that is a fact of life... they may not need to do it in your eyes, but they would not attain the yield they have attained without doing so...
You wish to include the yields achieved, but not the costs to achieve them....
The real cost of any yield that exists in the real world for IP's includes any work done to the IP... regardless as to if the PI had to do the work, or elected to do it.
How do you think the current yields exist for non new properties that are bought as IP's ? Magic fairy dust sprinkled over the properties to make them better than when purchased ?
How do you think that current property values and 'theoritical yields' for PPOR's exist ? by having properties that are not run into the ground and that have been improved over time... not everyone has slum lord thinking like Trollie...
Shady
Holding costs are a tiny fraction of the rental income.
Well we seem to be back to my claim of yields being offset by holding costs... glad you finally swallowed the pride pill and agreed.
Now.. define holding costs ? Do you include every dollar spent on the property from the time the property is purchased till the time it is sold or just the dollars that the owner had no choice but to spend ?
IMHO... if you are talking yields on IP's, (or theoretical yields on PPOR's), then every dollar spent maintaining, insuring, repairing, improving, extending, etc etc on the property is part of the real world holding costs... all of those are real expenses you have because you own (hold) the property... and all of them should contribute in some way to the calculation of desired yield for any investor.
yup, I read it and it still has not changed... "You have only said it makes up a small portion of your wealth. You are slippery that way. "
Why don't you explain to us just how me being slippery 'in that way' somehow does not relate to me not disclosing just how much of my wealth is in gold... I would be amused to see your explanation
It does relate to it, but I never asked you for details in that post. It's a simple concept you seem to have trouble with.
Rastus2
8 Dec 2015, 09:22 PM
Well I am no snob, but when I read " all I care about is the money it pays me"... it reeks of slum lord... so $$$ is all you care about... nice
I do only care about the income it provides me, that's what investment is about. It's up to the tenants to get the best value they can in the market.
If I don't provide they will go else where and I'll make less money.
Because you are a naive idiot you don't have any concept of what a slum lord really is. It's a situation 100's of millions find themselves in where they have no choice and are often held against their will in terrible conditions. Even the worst aussie suburbs have nothing on a true slum.
Offset definition : something that counterbalances, counteracts, or compensates for something else; compensating equivalent.
No, not equivalent in this case. Property holding costs only partially offset the yield - they're a tiny fraction of the rental income.
Rastus2
http://australianpropertyforum.com/single/?p=8092433&t=8344986 Well.. there are a number of reasons to buy a PPoR... In Australia, any capital gains are 100% tax free... this is a major reason to buy.... it locks you into a rung on the property ladder... consider it insurance
Any? Really? So there are no examples where PPOR capital gains are taxed, no matter how it is defined? Want to bet?
No, not equivalent in this case. Property holding costs only partially offset the yield - they're a tiny fraction of the rental income.
Any? Really? So there are no examples where PPOR capital gains are taxed, no matter how it is defined? Want to bet?
Nit picking again... an offset does not hafe to counterbalance to zero in every circumstance. It can be equivilent, but does not have to be.
The ATO use of the word offset is the same a mine, where an offset reduces an amount. The use of the word partial is not required.
Quote:
Tax offsets (sometimes referred to as rebates) directly reduce the amount of tax payable on your taxable income.
Context... There are examples, howefer in the context of the discussion I was having in that thread which you selectivly chose, the OP was not indicating any intent to buy a far, operate a business or rent out the property.
What js your excuse for your gaffe ?
My understanding is that many PI's have holding costs far in excess of the yield... kt's called negatife gearing
My point is that the huge gap between property and gold yield is offset by the huge gap between holding and maintence costs
In the context of this discussion, you described both gaps as 'huge'. In reality, the gap between property yield and gold yield is huge, but the gap between property holding costs and gold holding costs is small. Therefore it's only a partial offset. Holding costs on property are tiny fraction of the rental income.
Quote:
My understanding is that many PI's have holding costs far in excess of the yield... kt's called negatife gearing
If you want to apply leverage in each case, then the income return on property is still far higher than on gold. With leveraged property, the rent fully or partially covers the interest repayments. With leveraged gold, there's no yield to cover the interest repayments.
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