Welcome Guest [Log In] [Register]


Reply
  • Pages:
  • 1
  • 6
  • 31
The high cost of snake oil
Topic Started: 7 Jan 2017, 10:18 AM (10,302 Views)
Khaderbhai
Member Avatar
Wealthy Suburbanite

Chris
8 Jan 2017, 02:45 PM
Are you saying an older pensioner living in a $10mil home in Potts Point but living solely off the pension is worth $10mil? Does she die a millionaire but spends decades in abject poverty?
No, with a $10M home she would be living a life of absolute luxury.

Even if she only had a pension, she could rent out or Airbnb just one room of her house for more than you probably earn in a year, or she could tap into her massive net wealth using a reverse mortgage.

She could even rent out the whole house for about a quarter of a million dollars a year and go live somewhere smaller. Wealth opens up lots of possibilities and options like that.

She would also leave a very valuable asset to her kids/grandkids.
Edited by Khaderbhai, 8 Jan 2017, 03:03 PM.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
Profile "REPLY WITH QUOTE" Go to top
 
Terry
Member Avatar


Khaderbhai
8 Jan 2017, 02:55 PM
Roddy, we were discussing your blunder when you said "Nobel prizes require a body of groundbreaking research" and your subsequent blunder when you said there's a Nobel prize for economics.

Asking me to name prize winners isn't going to make your blunders go away.
I was referring to how a suburbanite would not challenge the likes of Shiller in the likelihood of being offered a Nobel Prize, because the probability that you will be awarded one will be close to zero without a body of research.

Likewise, Robert Shiller won't win a Nobe Prize for literature for the obvious reasons.

Leaves those utterings for the rods and socks MC.
Edited by Terry, 8 Jan 2017, 03:04 PM.
Profile "REPLY WITH QUOTE" Go to top
 
Chris
Default APF Avatar


Rufus
8 Jan 2017, 02:31 PM
Rising asset values can offer a home owner additional options though, like the ability to use that house as security for a business and other investments, borrow against it in the event of an emergency (medical, loss of employment, financial loss etc) and reverse mortgage it to supplement the pension when they retire.

I don't think you can just dismiss those advantages.
I'm not dismissing them, I actually highlighted them in number order in my first post. But it doesn't take away from the fact that as a single asset that. your PPORs value is irrelevant and you have acknowledged this.

As you've stated the only way to realise any value from your PPOR as an OO is to take out debt against it, what I'm saying is that debt has risk.

My overarching point was that house price escalation is sold to the masses in suburbs as a great thing but this is a fallacy. House price growth rewards investors only, it has no value to OO who do not have investments. So in short house price rises assist the 1.7mil investors and either do nothing or detract from the majority of the community. On the previso the investor doesn't spend every extra gain in order to stimulate the economy and fulfil a civc duty of course.
Edited by Chris, 8 Jan 2017, 03:08 PM.
Profile "REPLY WITH QUOTE" Go to top
 
Khaderbhai
Member Avatar
Wealthy Suburbanite

Terry
8 Jan 2017, 03:04 PM
I was referring to how a suburbanite would not challenge the likes of Shiller in the likelihood of being offered a Nobel Prize, because the probability that you will be awarded one will be close to zero without a body of research.

Likewise, Robert Shiller won't win a Nobe Prize for literature for the obvious reasons.

Leaves those utterings for the rods and socks MC.
Waffling won't make your blunders vanish Roddy.
Banks can't repossess your home simply because the market value falls. Australia's Consumer Credit Code says consumers aren't liable for things ordinarily outside their control and can't be held to obligations that could only be met by selling their home. Click for details.

"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
Profile "REPLY WITH QUOTE" Go to top
 
Trollie
Member Avatar


Chris
8 Jan 2017, 02:56 PM
You keep proving time and time again you just don't get it, leave this discussion to the grown ups ok.
You means the grown ups who purchased PPOR's? Time for you to sign out.
Chris
8 Jan 2017, 03:05 PM
But it doesn't take away from the fact that as a single asset that. your PPORs value is irrelevant
Most people's biggest asset is irrelevant? Look I know it must burn you in a sensitive place, but it's not irrelevant - when a PPOR goes up in value so does your wealth.
Edited by Trollie, 8 Jan 2017, 03:31 PM.
Profile "REPLY WITH QUOTE" Go to top
 
Tommy
Default APF Avatar


Trollie
8 Jan 2017, 03:27 PM
You means the grown ups who purchased PPOR's? Time for you to sign out.
Time for you to sign out? ? Never has someone's user name been so accurate.
Profile "REPLY WITH QUOTE" Go to top
 
Trollie
Member Avatar


Tommy
8 Jan 2017, 03:32 PM
Time for you to sign out? ? Never has someone's user name been so accurate.
Didn't you say you got enough abuse as a child?
Profile "REPLY WITH QUOTE" Go to top
 
Tommy
Default APF Avatar


Trollie
8 Jan 2017, 03:36 PM
Didn't you say you got enough abuse as a child?
There you go hahaha the original troll ladies and gentlemen!
Profile "REPLY WITH QUOTE" Go to top
 
Chris
Default APF Avatar


Trollie
8 Jan 2017, 03:27 PM

Most people's biggest asset is irrelevant? Look I know it must burn you in a sensitive place, but it's not irrelevant - when a PPOR goes up in value so does your wealth.
Pete and shadow seem to get it, so does everyone else but you.

Explain to me in these terms. If I own a $10mil home in Potts Point I've had for 50yrs but live solely on the pension does that make me a millionaire? I'm not going to sell it, reverse mortgage or draw from it for investment, I'm just going to live on it.

An I a multi millionaire trollie? Do tell.

And if I die in those circumstances do I die as a millionaire?

You are an imbecile!
Edited by Chris, 8 Jan 2017, 04:36 PM.
Profile "REPLY WITH QUOTE" Go to top
 
Trollie
Member Avatar


Chris
8 Jan 2017, 03:46 PM
You are an embacile!
Do I say something, or will you work it out on your own?
Chris
8 Jan 2017, 03:46 PM
Explain to me in these terms. If I own a $10mil home in Potts Point I've had for 50yrs but live solely on the pension does that make me a millionaire?
Absolutely you are a millionaire. Having an asset that you refuse to sell doesn't make you less wealthy, it just gives you options.
Edited by Trollie, 8 Jan 2017, 04:06 PM.
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
ZetaBoards - Free Forum Hosting
ZetaBoards gives you all the tools to create a successful discussion community.
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply
  • Pages:
  • 1
  • 6
  • 31



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