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Wow 50% lose playing the rent house to dumb dumb game; Who would have thought???
Topic Started: 4 Sep 2014, 09:43 PM (2,253 Views)
Foxy
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Zero is coming...

http://www.afr.com/p/business/property/investors_claim_in_rental_losses_7xEpfq2M9aqH0jsELf9sfK
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Based on 2011 tax returns. One guess why they feel the need to use 2011 data.
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4 Sep 2014, 09:48 PM
Based on 2011 tax returns. One guess why they feel the need to use 2011 data.
Any later data would probably look worse .

Mustys link shows what a joke housing is as an investment. Look at all the losses, and look at the little positive returns in the end when there 60-65, or 65-70 years of age.

And even at 55-59 or whatever it was, this age group as a whole is still running at a loss.

Some may argue that many are offsetting these with there ppor, and this may be the case for some or many, I don't know. But if that is the case, it means they would have another good whack of debt again.

What about all these 18-24 , 25-29, year old age groups shown. Are they offsetting another ppor , or is this investment property their first purchase into realestate. If they were paying these properties down with record lows rates, it would not be long before it would show a positive outcome, and this goes for all the age groups shown in the earlier link by musty. It shows they are paying little if any at all off these properties, or paying interest only properties, or that the moment they have build some equity somewhere, they have used that to overleverage into something else again.

It shows what a ponzi it has become over the years.

I think the older age groups that show the positive returns, shows what a sad return in the end, and these are the generations that have and will benefit the most from real estate than any generation before or after them. I'm surprised how bad it looks actually, very surprised.
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Jim
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4 Sep 2014, 09:48 PM
Based on 2011 tax returns. One guess why they feel the need to use 2011 data.
Prob cos interest rates were about 50 percent higher then than what they are now so it makes it look a lot worse

IRs have got so low now the later NG data would probably look a lot better, if there's any negative gearers left that is, all PIs I know are neutral or +ve now
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herbie
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Both my debt free IPs tick along at maybe 2% pa after tax and bean counter fee returns.

Might they pick up some more from capital growth going forward? Or lose some from housing price drops? Whilst I personally continue to keep 50% of my assets in cash just "to be safe/sure"?

Dunno ... I accept that I am just "a modest little man with much to be modest about" - As Winnie the C once opined ... :)
Edited by herbie, 6 Sep 2014, 07:41 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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szokolay
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Yes, for all the talk about rental properties giving a good income stream the numbers always disprove that aspect of them. Capital gains is the real payday, but those days seem to have gone for now.
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6 Sep 2014, 06:42 PM
Any later data would probably look worse .

Mustys link shows what a joke housing is as an investment. Look at all the losses, and look at the little positive returns in the end when there 60-65, or 65-70 years of age.

And even at 55-59 or whatever it was, this age group as a whole is still running at a loss.

Some may argue that many are offsetting these with there ppor, and this may be the case for some or many, I don't know. But if that is the case, it means they would have another good whack of debt again.

What about all these 18-24 , 25-29, year old age groups shown. Are they offsetting another ppor , or is this investment property their first purchase into realestate. If they were paying these properties down with record lows rates, it would not be long before it would show a positive outcome, and this goes for all the age groups shown in the earlier link by musty. It shows they are paying little if any at all off these properties, or paying interest only properties, or that the moment they have build some equity somewhere, they have used that to overleverage into something else again.

It shows what a ponzi it has become over the years.

I think the older age groups that show the positive returns, shows what a sad return in the end, and these are the generations that have and will benefit the most from real estate than any generation before or after them. I'm surprised how bad it looks actually, very surprised.
In 2011 the average homeloan rate was 7.5%, today you can pick up a loan for 4.5%. There I've done your critical thinking for you.
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van
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Yeah I would say it is the younger ones with an investment property.

What they do is buy an investment property and rent it out to a friend cheap, the other friend rents the property to the other friend. This way they pay little in rent and make a loss on their rental properties which is offset to their taxable income.

So they pay $100 in rent a week, lose $600 a week on their investment property, work income is 2,000 of which 600 is paid in taxes, but they get the 600 back because they 'lost' it on their investment property, but they saved it on rent....

Heaps of property investors in positioned in similar ways.
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Trojan
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szokolay
6 Sep 2014, 08:41 PM
Yes, for all the talk about rental properties giving a good income stream the numbers always disprove that aspect of them. Capital gains is the real payday, but those days seem to have gone for now.
Through your rose tinted glasses maybe. Every other worthwhile statistic says house prices in Australia are still rising.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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silverman47
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szokolay
6 Sep 2014, 08:41 PM
Yes, for all the talk about rental properties giving a good income stream the numbers always disprove that aspect of them. Capital gains is the real payday, but those days seem to have gone for now.
Most property investors, would have 1 investment property, very very few property investors have more than one IP. To see any kind of real income growth you need to have multiple properties, unless you plan to flip them consistantly.

There are several people on this forum, including myself, with multiple investment properties. The report doesnt represent the 1% of property investors in australia, it represents the 99% of property investors in australia who neg gear everything.
van
6 Sep 2014, 09:18 PM
Yeah I would say it is the younger ones with an investment property.

What they do is buy an investment property and rent it out to a friend cheap, the other friend rents the property to the other friend. This way they pay little in rent and make a loss on their rental properties which is offset to their taxable income.

So they pay $100 in rent a week, lose $600 a week on their investment property, work income is 2,000 of which 600 is paid in taxes, but they get the 600 back because they 'lost' it on their investment property, but they saved it on rent....

Heaps of property investors in positioned in similar ways.
you have absolutely no idea
Edited by silverman47, 6 Sep 2014, 09:23 PM.
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