Welcome Guest [Log In] [Register]


Reply
  • Pages:
  • 1
  • 2
Wow 50% lose playing the rent house to dumb dumb game; Who would have thought???
Topic Started: 4 Sep 2014, 09:43 PM (2,254 Views)
ThePauk
Member Avatar
Diamond Member
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.
Until you get caught by the ATO for not charging market value and pay the fines..
Dumbest advice even...
Profile "REPLY WITH QUOTE" Go to top
 
herbie
Member Avatar


ThePauk
6 Sep 2014, 09:27 PM
Until you get caught by the ATO for not charging market value and pay the fines..
Dumbest advice even...
Don't cry to me if the ATO rips ya gonads out of you 'n ram 'em up ya arse.

As a dude what's tried it on with them once or twice in the past (tho whats a reformed sinner now ... :) ), if they shaft you ya DEFINITELY DESERVE gettin' shafted ... :)
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
Profile "REPLY WITH QUOTE" Go to top
 
Foxy
Member Avatar
Zero is coming...

pay to god what is gods, pay to Caesar what is Caesar's and the rest is yours to keep.

Peter
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
Profile "REPLY WITH QUOTE" Go to top
 
miw
Member Avatar


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.
By my calculations, over 50% of the economic return of Brisbane IPs comes from rent. It is dependent on yield, so that is at about 5.3% gross yield. As yield goes down, the capital gain component becomes larger. If you don't believe me, try buying an IP and not renting it out and see if you can make money out of it over a 10-year holding period.

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.
Rubbish. That is illegal and you will get caught. You don't think the ATO has algorithms to catch non-commercial rent? If they think you are charging non-commercial rent, they will decide for themselves what a commercial rent is and allow you tax deduction pro-rata. Not to mention penalty tax on any amounts you got away with in previous years.

Edited by miw, 7 Sep 2014, 05:15 PM.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
Profile "REPLY WITH QUOTE" Go to top
 
Guest
Unregistered

silverman47
6 Sep 2014, 09:21 PM
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.

you have absolutely no idea
This bull has multiple investment properties too, in as crappy a market as yourself. I'm sure he talks about it all the time, all the IPS he owns, but how's the dope really going.

Typical idiot below has paid nothing off in over all the years and is forty years old. Sounds like shadow, thinks he is rich but is too broke to even venture outside the house in years.

Typical bulls and there bullshit. Think they are rich but live in on the poverty line.

http://somersoft.com/forums/showthread.php?p=1210700
"REPLY WITH QUOTE" Go to top
 
Guest
Unregistered

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.
Capital gains is the money the bears thought they were saving by not buying.
"REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
« Previous Topic · Australian Property Forum · Next Topic »
Reply
  • Pages:
  • 1
  • 2



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy