Oh good to know Peter, I was wondering my position in this world and now I know I am a piece if shit that rents from a private landlord. It would be nice to be a genuine human being with a 40yr interest only loan but that's life I guess, we can't always get what we want hey?'
Hope your not one of those spades a shovel kind of guys. I am talking to the "landlords". Renters are a special kind of cat. If you took what i am saying one logical step further you would have the true message of the thread. In a mirror the left hand appears to be the right hand. Open your mind. Peter The financial system is enabling paradoxically through higher house prices to have lower house prices. Rents here in Western Australia are collapsing. That will benefit you. The landlord is the renter, the bank the ultimate landlord position, where are you??
miw
14 Sep 2014, 06:12 PM
Does that $400/wk include other holding costs like rates and water? How about maintenance?
If it did, then everyone would go out and buy their own dwellings, pushing prices up and rents down until equilibrium was reached.
In fact this re-balancing is going on all the time. Rents have been soft in Brisbane for over a year now, at least in part because tenants have been not renewing their leases and going out to buy their own places.
it's happening in Western Australia big time. Landlords you are on notice. paradigm shift time. so many low price units in Western Australia for sale, empty and being built.
very good.
Everyone in this country in my humble opinion should be able to afford a house.
Good luck.
You guys just got to get over the "I have to live in Sydney" syndrome. Your like whores selling yourselves for that new pair of shiny red shoes.
Well you can fix rates at 4.99% for 5 years. Income loss would be the stopper. Interesting times, if people are unable to buy when stock is available and interest rates at all time lows, i ask you when will they. Risk you are right. A renter is a renter. I just wish you all the very best. The rise and fall of the waves is interesting to watch. God luck. Peter
"Banks have replaced the private landlord as for now"
What a total load of crap mustaph mondo nutter , when you not in league with the banks control of the finances then that's not an accurate term.
Btw..
I think you are a schizoid, why on earth do you "speak" for someone's else's opinions ??? Why can't the poo brain post??
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
it's happening in Western Australia big time. Landlords you are on notice. paradigm shift time. so many low price units in Western Australia for sale, empty and being built.
Hmm. Just went through the excercise with one of my properties.
Weekly rent is actually not much shy of the interest on a loan for 80% of its value plus forecast expenses for the year minus land tax. ($366 vs. $350 rent). (Gross yield at that rent is just on 5.3%).
I'm gonna have to lower the rent or those fuckers will be off buying their own place.
Well actually there are a number of reasons why they will likely choose not to, but the equation is closer than it has been in my lifetime. And many are making exactly that choice - my PM bitches about it all the time.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Haven't the bears been posting non stop about how we are going into economic melt down. This means rates are going down not up.
Central Bank rates fall... Bond Market rates rise as greater perceived risk and an expectation of a higher return to offset that risk...
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Hmm. Just went through the excercise with one of my properties.
Weekly rent is actually not much shy of the interest on a loan for 80% of its value plus forecast expenses for the year minus land tax. ($366 vs. $350 rent). (Gross yield at that rent is just on 5.3%).
I'm gonna have to lower the rent or those fuckers will be off buying their own place.
Well actually there are a number of reasons why they will likely choose not to, but the equation is closer than it has been in my lifetime. And many are making exactly that choice - my PM bitches about it all the time.
interest bill below rent payments now thats what i am talking about. Peter Landlords your cream just disappeared, and you did not even see it happen. Your days of ripping off single mothers and old age pensioners is over.
interest bill below rent payments now thats what i am talking about. Peter Landlords your cream just disappeared, and you did not even see it happen. Your days of ripping off single mothers and old age pensioners is over.
Rubbish. 5.3% yield is just more than it used to be. The longer interest rates stay low, the more it will compress, but LLs are arguably better off now than they were 10 years ago.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Rubbish. 5.3% yield is just more than it used to be. The longer interest rates stay low, the more it will compress, but LLs are arguably better off now than they were 10 years ago.
I resect your opinion, could you please answer the following 1) what is your "net" yield. 2) what interest rate do you pay on your loan Or opportunity cost of your money. 3) what is your tax rate??
In other words how many beers can you buy at the end of the week from renting a house to someone.
I resect your opinion, could you please answer the following 1) what is your "net" yield.
Better than it was 10 years ago, because my gross yield is 0.5% lower but my interest rate is 2% lower. (Actually gross yields were sucking in BNE in 2004, but there were higher than they are now in 2001.)
Quote:
2) what interest rate do you pay on your loan Or opportunity cost of your money.
See above
Quote:
3) what is your tax rate??
Not relevant to the discussion.
Quote:
In other words how many beers can you buy at the end of the week from renting a house to someone. Oh and please adjust for inflation.
More than 10 years ago, and where I own, prices have kept ahead of inflation which is what you want to know when you talk in yield terms.
If you really want to have a point, LLs with no debt are worse off, except that yield on everything else has got more worse so on a comparison basis, they are no worse off. LLs with debt are significantly better off.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
Haven't the bears been posting non stop about how we are going into economic melt down. This means rates are going down not up.
According to who? Post up a chart of interest rates covering the last 100 years of economic meltdowns and then make your point about what you think the bears do or do not believe.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
What total BS! The author of this post has created two mythical populations of renters, The good hardworking renters and the poor lazy whitetrash renters. First the second population either live in a public housing unit or on the street as currently landlords want people that can pay a bond and have a good tenancy history. The first group of renters why would they want to rent from a bank as it has all of the costs of renting with none of the perks. Renters enjoy not being responsible for stamp duty, council tax, strata, water rates, maintenance and it is not flexible I can't move to chase work or move cities easily. Also in Sydney the cost of renting apartments in particular is far cheaper than paying the interst on a mortgage. The only benefit I could see is that you would pocket the capital gains but by the same token if the price went down you would be in trouble.
I think that his plays into the idea that there is a massive population of high income earners in Australia where the truth is that the bloke making 65000 is better of than roughly 70 percent of full time workers and if he lives in Sydney he is probably better off renting and renting from a bank.
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.
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