I reckon a mower, whipper snipper and a trailer is all you'd need. Maybe a jerry can a rake and a broom to go with it.
I'm surprised more people don't do it. $2000 would set you up nicely, and there'd be no cost of buying into a franchise. Ads in the local paper, knock on some doors and maybe a cheap website. Paint your mobile number on the side of the trailer.
The guy who does my brother's place is so busy he's looking for partners to help him cover the territory. It really helps if you can do a bit of handyperson stuff as well.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Anyone that claims that the quarantining of negative gearing between 1985 and 1987 pushed-up rents either doesn’t know what they are talking about, or is lying.
Without a shadow of a doubt, the Hawke Government’s decision to quarantine negative gearing had no discernible impact on rental growth, period.
The spruiker's assertion that negative gearing assists in the provision of rental accommodation is also highly spurious. An examination of of the RBA statistics shows that the overwhelming majority of investors – over 90% – invest in existing dwellings rather than construction, and that the proportion of investors constructing dwellings has fallen spectacularly since negative gearing was re-introduced in September 1987. Moreover, the amount of investor funds going into new construction has barely shifted in 25 years.
Because investors primarily purchase existing dwellings, negative gearing in its current form simply substitutes homes for sale into homes for let. As such, negative gearing has done little to boost the overall supply of housing or improve rental supply or rental affordability.
In the event that negative gearing was quarantined so that losses could no longer be claimed against wage or salary income (as occurred between 1985 and 1987) and a proportion of investment properties were sold, who does the REIA think they would sell to? That’s right, renters (or other investors). In turn, those renters would be turned into owner-occupiers, thereby reducing the demand for rental properties, leaving the rental supply-demand balance unchanged.
Let’s also not forget that Australia is one of only a few nations that allow investors to deduct property losses against unrelated income. And yet we have one of the most unaffordable housing markets in the world and chronic supply problems (despite a massive land mass). What does this tell you about the efficacy of retaining negative gearing?
The evidence shows that negative gearing does little to boost supply, yet the additional demand from tax subsidised investors places upward pressure on home prices, locking-out first time buyers. This might help to explain why most other nations – many with more affordable rental accommodation than Australia – do not allow negative gearing.
Negative gearing also costs the government billions in lost tax revenue, which could be used to fund schools, hospitals, housing-related infrastructure, or any number of other worthwhile endeavours. It is pure and simple rent-seeking.
If they drop neg gearing and if that looks like it will cause housing prices to fall, the RBA will drop interest rates to keep them up and/or the pollies will do something else to keep them up - And if you don't understand that, then you've not been paying attention over the last 5 or 6 years ...
Hmmm - Maybe you personally will win from whatever they do. Or maybe you'll lose. But either way, the end result of any change and any follow up actions will not be lower house prices as and of themselves - IMO. Because the powers that be simply do not want lower housing prices pretty obviously.
Anyone that claims that the quarantining of negative gearing between 1985 and 1987 pushed-up rents either doesn’t know what they are talking about, or is lying.
And anyone that claims that the quarantining of negative gearing between 1985 and 1987 pushed-down rents either doesn’t know what they are talking about, or is lying.
Any expressed market opinion is my own and is not to be taken as financial advice
Anyone that claims that the quarantining of negative gearing between 1985 and 1987 pushed-up rents either doesn’t know what they are talking about, or is lying.
This has been discussed pretty thoroughly on this forum in the past.
1. The period was far to short to discern what impact the quarantine had, if any.
2. Contrary to the lies of a few people like Saul Eslake, rents did in fact rise quite strongly during that period.
3. But they probably would have risen strongly anyway if you look at what inflation was doing at the time.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
As for thinking like an investor, if I bought an apartment to rent out, I would have strata fees to add to my annual outgoings.
I wouldn't consider an apartment over a house as being either better or worse as an investment. I know people who have built new to rent out and none of them have bought apartments.
If you want a new build house you need to tie up money for a long time in the build process. Few Developers spec build houses. Australia is not like the uk with its stock of Barrett new builds for sale
Jimbo
15 Aug 2014, 12:17 AM
That may be the case everywhere else, but in Perth, I believe it will have a big impact. A lot of mining related high wage earners have dived into investment property due to the "free money" they get from the government via NG. It has been spruiked to hell and back over here and I have lost count of the number of fuckwits that have told me to buy an investment property to reduce my tax bill.
That is my whole reason for being bearish on Perth property. It is full of amateur (dumb) money. You only have to look at the number of suckers who bought Jims franchises to see that WA is full of fools and their money.
I was always taught pride comes before a fall.
There is no evidence of an investor boom in Perth the market has mostly been driven by fhbs.
herbie
15 Aug 2014, 07:59 PM
If they drop neg gearing and if that looks like it will cause housing prices to fall, the RBA will drop interest rates to keep them up and/or the pollies will do something else to keep them up - And if you don't understand that, then you've not been paying attention over the last 5 or 6 years ...
Hmmm - Maybe you personally will win from whatever they do. Or maybe you'll lose. But either way, the end result of any change and any follow up actions will not be lower house prices as and of themselves - IMO. Because the powers that be simply do not want lower housing prices pretty obviously.
If they drop negative gearing it is because they think they can get away with a tax increase without affecting house price rises. There is too much riding on the residential construction boom to risk a loss of confidence in the market.
This measure disadvantages middle income people who could invest in property if they get the reduced tax burden on their losses for the first few years.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
If you want a new build house you need to tie up money for a long time in the build process. Few Developers spec build houses. Australia is not like the uk with its stock of Barrett new builds for sale
I know how things work here? I was only in the UK for around 10 years. I have spent most of my working life in WA construction.
skamy
15 Aug 2014, 08:22 PM
There is no evidence of an investor boom in Perth the market has mostly been driven by fhbs.
Please explain why every house under $400k is spruiked as "ideal investment opportunity"?
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Please explain why every house under $400k is spruiked as "ideal investment opportunity"?
It's called advertising. Much like other advertisers will tell you that you need an imported car to be cool, or stay at the right hotel, or shop at the right mall, advertising will tell you to buy their property.
I've often wondered why some of the bears get so upset about 'spruikers'. People fall for advertising bullshit all the time, it's part of what being dumb is all about.
It's called advertising. Much like other advertisers will tell you that you need an imported car to be cool, or stay at the right hotel, or shop at the right mall, advertising will tell you to buy their property.
I've often wondered why some of the bears get so upset about 'spruikers'. People fall for advertising bullshit all the time, it's part of what being dumb is all about.
It's called spruiking and it's why FHBs are at record breaking lows, symptomatic of a corrupt, class welfare range of policies
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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