Welcome Guest [Log In] [Register]


Reply
When will the Bulls eat humble pie on WA?
Topic Started: 24 Mar 2017, 12:18 AM (19,216 Views)
Trollie
Member Avatar


You guys enjoying your little circle jerk?

Perth hasn't crashed jimbo and you've blown a fortune in rent, and still need to buy back in. Not looking good for you mystic Jim.
Profile "REPLY WITH QUOTE" Go to top
 
Simon_S
Member Avatar


Trollie
1 Apr 2017, 08:50 PM
Perth hasn't crashed jimbo and you've blown a fortune in rent,
Is that like blowing a fortune on Interest Repayments..........which by the way are Rising.

Are Perth House prices Rising.......

Oh Wait no......But rates are......

BWAHAHAHAHAHAHHAA
Profile "REPLY WITH QUOTE" Go to top
 
eloi75
Member Avatar


Trollie
1 Apr 2017, 08:50 PM
You guys enjoying your little circle jerk?

Perth hasn't crashed jimbo and you've blown a fortune in rent, and still need to buy back in. Not looking good for you mystic Jim.
you want some soggy saio trollie?
Profile "REPLY WITH QUOTE" Go to top
 
Trollie
Member Avatar


eloi75
1 Apr 2017, 08:54 PM
you want some soggy saio trollie?
Pauk you sickf***

Baby boomers will eat your babies and get free everything
Simon_S
1 Apr 2017, 08:53 PM
Is that like blowing a fortune on Interest Repayments..........which by the way are Rising.

Are Perth House prices Rising.......

Oh Wait no......But rates are......

BWAHAHAHAHAHAHHAA
No nothing like it.

Why are rates rising again?
Edited by Trollie, 1 Apr 2017, 09:00 PM.
Profile "REPLY WITH QUOTE" Go to top
 
eloi75
Member Avatar


Trollie
1 Apr 2017, 08:59 PM
Pauk you sickf***

Baby boomers will eat your babies and get free everything

No nothing like it.

Why are rates rising again?
lmao they better hurry before the dingos eat the babies
Profile "REPLY WITH QUOTE" Go to top
 
herbie
Member Avatar


eloi75
1 Apr 2017, 07:35 PM
agree. if someone is looking longterm, like 20 years, then yes u will find some good opportunities now but u will find even better ones in a few years i feel and save yourself a few 100k's
Save a few 100K in a few yrs on genuinely decent investment properties currently valued at how much?

Hmmm - 'N if ya a genuine ('n 'youngish') investor (rather than a speculator) why wouldn't you be looking long term?
Edited by herbie, 1 Apr 2017, 09:26 PM.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
Profile "REPLY WITH QUOTE" Go to top
 
Rufus
Member Avatar


eloi75
31 Mar 2017, 11:41 PM
well lets do the maths then.

Any expenses incurred go towards your income. So say you earn 120k a year (tax bracket of 37%) and your investment is costing you 20k a year, then you can use that 20k to lower your income which will reduce it to 100k. So now your only taxed on 100k and not 120k. So 37% of 20k is around 7.5k. That leaves another 12.5k that will come out of your pocket and you wont get back. Now add 2 or more houses to that and its looking pretty bleak. So investments are good for lowering your tax but unless you can lower it to 18k (tax free) then your always going to lose money unless your working on capital gains.

Now add to that the property value going down and your now losing the amount plus property value.

Now please enlighten me on how its good to invest when market is dead.
Yeh nah, that's not how I look at it. I want to make my money on the purchase. I would be looking for a 20% discount, so I want a $500K property for $400K so I've made $100K on purchase. if I have to go without any rental for 6 months which would be extreme if I bought in a desirable area, and if I had to take $400 per week instead of $500 per week than that's a shortfall in income of $13K in the first 6 months and possibly $15,600 for the year.

It's not a big loss and tax partly covers it, even at your chosen tax rate of 37 cents I would get about $6K back

Using a 20% deposit would probably give me a modestly negatively geared investment (on paper) that would probably become positively geared after a few years of rental gains.

Our philosophical difference is probably in my belief that prices in the long term will rise whilst you believe the a crash will continue in Perth. It really wouldn't worry me if the median price fell further, I rely on picking the right property and paying the right price. If I don't get it perfectly right it's not a big issue.

For you to win, house price changes would have to go against a trend in housing that has been in place since 1945 - that's over 70 years.
Take risks - if you win you will become wealthy, if you lose you will become wise
Profile "REPLY WITH QUOTE" Go to top
 
hidflect
Member Avatar


Our Economies Run On Housing Bubbles

What we have invented to keep big banks afloat for a while longer is ultra low interest rates, NIRP, ZIRP etc. They create the illusion of not only growth, but also of wealth. They make people think a home they couldn’t have dreamt of buying not long ago now fits in their ‘budget’. That is how we get them to sign up for ever bigger mortgages. And those in turn keep our banks from falling over.

Record low interest rates have become the only way that private banks can create new money, and stay alive (because at higher rates hardly anybody can afford a mortgage). It’s of course not just the banks that are kept alive, it’s the entire economy. Without the ZIRP rates, the mortgages they lure people into, and the housing bubbles this creates, the amount of money circulating in our economies would shrink so much and so fast the whole shebang would fall to bits.

That’s right: the survival of our economies today depends one on one on the existence of housing bubbles. No bubble means no money creation means no functioning economy.

What we should do in the short term is lower private debt levels (drastically, jubilee style), and temporarily raise public debt to encourage economic activity, aim for more and better jobs. But we’re doing the exact opposite: austerity measures are geared towards lowering public debt, while they cut the consumer spending power that makes up 60-70% of our economies. Meanwhile, housing bubbles raise private debt through the -grossly overpriced- roof.

This is today’s general economic dynamic. It’s exclusively controlled by the price of debt. However, as low interest rates make the price of debt look very low, the real price (there always is one, it’s just like thermodynamics) is paid beyond interest rates, beyond the financial markets even, it’s paid on Main Street, in the real economy. Where the quality of jobs, if not the quantity, has fallen dramatically, and people can only survive by descending ever deeper into ever more debt.

Posted Image

Edited by hidflect, 1 Apr 2017, 10:21 PM.
Profile "REPLY WITH QUOTE" Go to top
 
Simon_S
Member Avatar


Trollie
1 Apr 2017, 08:59 PM
No nothing like it.

Why are rates rising again?
Of Course Trolley.......Your Rates would never Rise....

Did the RBA Raise Rates...

Oh No Wait.......The US FED DID.

Oh whats that.....the Banks Raised theirs.....Oh Wait........They Raised Yours straight after.......

BWAHAHAHAHHAHAHA




Rufus
1 Apr 2017, 09:40 PM
For you to win, house price changes would have to go against a trend in housing that has been in place since 1945 - that's over 70 years.
Only 70 years......Why not since the Beginning of time........

Oh wait we had the Great Depression where they Dropped for 16 years........

Couldn't happen again.....Could it......Shhh......Don't mention the GFC

Edited by Simon_S, 1 Apr 2017, 10:22 PM.
Profile "REPLY WITH QUOTE" Go to top
 
Jimbo
Member Avatar


Rufus
1 Apr 2017, 09:40 PM
Yeh nah, that's not how I look at it. I want to make my money on the purchase. I would be looking for a 20% discount, so I want a $500K property for $400K so I've made $100K on purchase.
How did you work that one out?
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.
Profile "REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
DealsFor.me - The best sales, coupons, and discounts for you
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply



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