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Get Up! End Negative Gearing & Property Buyer / First Home Buyer FHB Strike; 40,000 First Home Buyers On Strike - David Collyer
Topic Started: 16 Mar 2011, 08:59 AM (25,077 Views)
Mr Wu
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pauk
28 Mar 2011, 09:11 AM


So you only care about your affordability.....sad Mr Wu.

Yes, Wu look after own finace, he care no about others finance and they no care about mine
Wu no sad, he very much the afford house
But wu no affordt the new mercedes as well, this make Wu sad

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Do you care about young couples starting out? I guess not......

Wu at many open house late last and thuis year
Many young couple at open house at same time as Wu
Wu see them all drive $40,000 + car, som twice that, Wu think young peoples no care about affordability themself, they either rich and own car or can afford repayment and they still want house
Wu see no frugal young couple only spender

Wu say poorer yioung couple look cheap area, down hill from sunnybank be much cheaper
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carter
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Tasman Vagrant

Second place now -- very impressive!
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BubbleBoy
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peter fraser
28 Mar 2011, 09:02 AM


That may have consequences that you haven't thought through. For example I would prefer to accumulate any tax losses and claim them against my capital gains when I sell. That helps keep me in a lower tax bracket in the year of sale, and maximises my tax deduction. NG simply brings that tax deduction forward, it doesn't change the end result markedly, although I argue that a serious investor would be better off without NG.

I hope that you get what you want, that way investing in residential property combined with lower prices in Brisbane (but not lower rents) might just become attractive for me again.

Where do I sign up?????

I'm all for private investment in public housing......
Keep in mind the time value of money. $1000 of deductions today is worth substantially more than $1000 in 10 years.

Secondly, to the degree deductions are added to the cost base for CGT purposes they are only half as effective. As Capital Gains are subject to a 50% concession, anything that reduces them only has half the impact of a deduction to offset everyday income.
My name is based on a Seinfeld character, not on a belief of a housing bubble.
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Mahamed
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Morbidly Obese

1st Place !
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matthew_50
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lol, and of course Mr Wu WOULD live in Sunnybank!

I'm really sick of this STUPID deflection by the bulls toward the affordability CRISIS: "its just dole bludgers complaining they can't afford a house"

someone on a MEDIAN FULL TIME wage in Aus can afford to borrow about 300k... and this will be a BIG commitment! in fact, THE ONLY people who have it anywhere near approaching 'easy' are dinks! and this is the MEDIAN we are talking about here! hardly dole bludgers!

and we are talking about their maximum capacity here! not even their quality of life under the strain!

a single breadwinner family is nearly out of the question!


remember, its not just about what people CAN pay, its what they WANT to pay... you can't just stretch everyone to the maximum limit assuming ALL of their discretionary money will go towards a house... and say "well, we haven't hit that yet, so everything is perfectly fine!"

we aren't talking about how the poor can't even theoretically afford a house... we are talking about how much sacrifice middle Australia has to make just to afford a house!

not even that, we are talking about how POINTLESS it is, and how terrible it WILL be if it does go south!


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Mahamed
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Morbidly Obese

Now we're getting international attention !

http://www.greaterfool.ca/2011/03/27/strike/comment-page-1/#comment-92288

Strike!

March 27th, 2011 | Book Updates | E-mail this blog post to a friend

Imagine a place where housing’s hopelessly unaffordable. Where it takes six or nine times an annual income to get a home. Where young people, despite their inexperience and lack of money, are dangerously pushed into piles of debt. Where folks are told there’s a shortage of land, in a country that’s mostly empty. Where government has purposefully inflated real estate. Where anyone can flip on TV and see what housing excess did to the middle class in Britain or America. But where everything thinks it’s different.

And it ain’t Canada.

Two weeks ago a home buyers strike emerged in Australia.

Interesting, because the country of 22 million is in the throes of a housing bubble just like ours. Prices have raged higher since the economic crisis three years ago, fueled by low rates (now higher), easier credit and a real estate-horny government. Weeks ago The Economist figured Australian houses are overvalued by a withering 56%. And Demographia ranks Sydney among the most expensive cities in the world (9.6 times income), right ahead of Vancouver (9.5).

Speculation is rampant. Investors have snapped up properties, but (like here) market rent won’t even cover the cost of carrying them. And the MSM is filled with opinion pieces and quotes from politicians and experts saying there is no bubble – just a robust market based on economic fundamentals. Hic.

But at least some people aren’t buying it. Like Paul, who reads this pathetic blog. He writes me:

I’m a Gen Y and of all my friends here in Australia very few have actually bought a house, what’s more these few only bought prior to the start of 2010. The majority of my friends however (including myself) rent, and of that majority none of them want to buy a house at the moment. The interesting thing is, go back to 2010 and most of this majority wanted to buy a house at that time, so sentiment has changed fairly quickly (at least for my generation).

It also mirrors what’s happening in the US. Surveys show that while 85% of Americans thought owning a home was a swell idea a few years ago (in Canada it’s now 90%, says RBC), that number has now plunged to 69%. Worse, among people under 30, six in ten want nothing to do with real estate.

So, a group called Prosper Australia, which usually lobbies for tax reform, has issued a call for all property virgins to remain whole. Stay away from house deals, it says, before “the flip into a falling market” which is says is imminent.

Here’s the media release:

“When the Great Australian Land Bubble bursts – just as land bubbles all around the world have – the freshest buyers are totally exposed. They face financial ruin as house prices fall below their debt. The crippling mortgage repayments become pointless. We cannot help those who have recently bought, but we can warn prospective buyers – particularly first-timers whose innocence and heavy borrowing leaves them uniquely exposed.

Residential properties are trading at between six and nine times earnings – depending on assumptions. Historically, they have fluctuated between two and a half and three times earnings. A buyers’ strike is the only rational response to current land prices. Frankly, prices are ridiculous. How anyone can pretend Australia has a land shortage beggars belief!

Some argue prices have arrived at a new and permanently high plateau, but the historical record shows reversion to the long term average – in every case without exception. I remind you there are 1.3 million Australians with negatively geared rental properties. They are diverting all rents and some personal income to meeting interest payment in the hope of capital gains. When only capital losses are expected, investors will flood the market and overwhelm demand. Buyers will step back, making it virtually impossible to sell at any price.

Do not underestimate the scale and significance of the transformation that is about to unfold. Price falls are imminent – protect yourself. Don’t Buy Now!”

So, does the movement has legs? Has it become a media darling? Or is it viral?

“As far as I know,” says Paul, “it has had very little or no attention in the mainstream media. Politically this movement has not had any mention, however the green party is beginning to talk about the housing affordability issue, so if it’s going to get mentioned it will probably start with the greens. As for the public consciousness I think once again it is too early to say, but it seems sentiment is really starting to change anyway.”

If you want to know more, here’s the Prosper Australia page, here’s the Facebook page, and here’s an online forum kicking the idea around.

As you browse this material, think of all the dewy-eyed, hormonal, brainwashed young bovines who stampede to every new home sales trailer in Milton or condo project in Burnaby, snapping up properties in less time than it takes to choose a flattering thong (I know). As this blog’s pointed out, the tiniest of real estate corrections is enough to throw tens of thousands of unsuspecting young homeowners into negative equity. Worse, a protracted housing slump (and it’s coming) would erase their savings, destroy their financial futures and saddle them with debt without the prospect of equity. In short, way worse than rent.

Let me leave you with a couple of facts that cropped up in the last two days – reminders of what a housing correction can look like.

* In the suburbs outside New York, it’s estimated housing values will recover – by 2020.
* It’s now believed US realtors have exaggerated sales of existing homes by up to 20%, meaning the current market is worse than that of the Great Depression.
* New home sales are the lowest ever. (Records have been kept for 50 years.)
* Los Vegas had one of the hottest real estate booms six years ago. A home that sold for $240,000 is today worth $80,000.

Go to your television sets. Now. Turn off HGTV. Rip it from the wall. Fling it into the street.

Stand there, and scream: ‘We’re mad as hell. We’re not gonna take it anymore. I’m on strike!’

Buyers, not sellers, set prices. Pass it on.
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lierlier
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I suspect a lot of Canadians suddenly morphed into striking Aussie FHBs :lol:

Thanks guys :beer:
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Rastus2
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BubbleBoy
28 Mar 2011, 11:51 AM
Keep in mind the time value of money. $1000 of deductions today is worth substantially more than $1000 in 10 years.

Secondly, to the degree deductions are added to the cost base for CGT purposes they are only half as effective. As Capital Gains are subject to a 50% concession, anything that reduces them only has half the impact of a deduction to offset everyday income.


quite correct BB...

The real issue is that it is far easier to manage your repayments rolling forward for most if they have a regular income stream subsidized... you can delay the asset sale for decades (right through any price drop) as long as the subsidy keeps rolling in...

On the other hand, if you have to provide the ongoing costs yourself, the ability to leverage up is limited..

All of this has the effect of artificially inflating prices and speculation for IP's.. none of it has the direct effect of increasing construction of new rentals.
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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Strindberg
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Mahamed
28 Mar 2011, 12:59 PM
1st Place !
..and all the result of the PI clubs getting organised and voting for it. Creating votes is very easy. The stronger this campaign gets the better it is for the PIs.
Rents to the moon.
Housing costs to Income broadly unchanged since 1994 - re-ratified here
The People of Australia have the highest median wealth in the World
2002-2012 10 year house price growth the SLOWEST since 1952-1962
"There are two kinds of people in this world: ones that fiddle around wondering whether a thing's right or wrong and guys like us." (Hugo to Gagin in Ride the Pink Horse)
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earthsta
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Strindberg
28 Mar 2011, 04:03 PM

Quoting limited to 1 levels deep
You're just making shit up

Nagative gearing or more to the point, getting rid of negative gearing will NOT cause rents to rise

This has already been debunked. Nice try though

Debunking Strindbergs Shit

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