120,000 x 75,000 = 9 billion dollars of raw land gouge in Aus each year just for house blocks.
Even though that's the biggest gouge, there's still a few more on top of that.
The Hong Kong freely admits that it artificially keeps land prices high by limiting release of crown land to developers. In this way the Hong Kong government can have one of the lowest income and corporate tax rates in the developed world.
In Australia we have high income tax,corporate tax AND land tax gouging as well. What do those 1.6 million public sector employees actually DO I wonder.
Im not familiar with NSW at all but Jesus Christ that looks expensive for what it is.
There are blocks on the maribyrnong river 15kms from melbournes cbd for 300k that are surrounded with very nice 2-3 story homes.
It's the Yippie effect. Planet raping Baby Boomers want to save their soul by moving to Byron Bay and taking up Yoga. So they improve their Karma further by pushing all the locals out of the property market (who move to Ballina or Lennox Heads) and stopping any and all development so they can add selfishness to their long list of Karmic Issues they need to work through.
Wow if it's so easy you should launch into land developments.
Best of luck.
Yep Pete, that's what a piece of subdivided raw land is worth on the city fringe........25k..........not 100k. The improvements are worth about 25k as well.
Real base price......50k.........but 200k for you!
You seem to forget Pete, we're only talking about the price of one block.......not an entire development.
How much of the magic dance is justified that takes a 50k house block to 200k????????????????
Told ya, the bulls would hate this!
The entire Aus property industry has a turn over of 200billion a year. And 9 billion of it is just thin air creation on raw land alone....forgetting all the other gouges.
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
Wow if it's so easy you should launch into land developments.
Best of luck.
Wow care to explain how you interpretted anything being discussed here as claiming it's "easy" to "launch into land developments."
Best of luck.
Well the Count is claiming that it is highly profitable, which should make it easy for a cashed up investor, except that he has knowingly underestimated costs, left off developer contributions and GST.
He has conveniently forgotten to mention that developments are high risk enterprises that might make a small killing or they might make a not so handsome loss and lead to suicide. If there is one way for an inexperienced investor to lose his shirt and underpants, then property development is the best way.
The Count (aka Wulfgar) and I have discussed this before when he rather honestly conceeded that he was incorrect, and that developers did indeed have to pay both statutory fees and the costs of installing roads, electricity, water, gas if appropriate, parks, as well as kerbing, channeling and storm water, sewerage etc. If you or the Count think that can be done easily or cheaply with no holding costs, high interest costs or other ongoing fees such as land tax and council rates, then I urge you both to have a go.
Any expressed market opinion is my own and is not to be taken as financial advice
Well the Count is claiming that it is highly profitable, which should make it easy for a cashed up investor, except that he has knowingly underestimated costs, left off developer contributions and GST.
He has conveniently forgotten to mention that developments are high risk enterprises that might make a small killing or they might make a not so handsome loss and lead to suicide. If there is one way for an inexperienced investor to lose his shirt and underpants, then property development is the best way.
The Count (aka Wulfgar) and I have discussed this before when he rather honestly conceeded that he was incorrect, and that developers did indeed have to pay both statutory fees and the costs of installing roads, electricity, water, gas if appropriate, parks, as well as kerbing, channeling and storm water, sewerage etc. If you or the Count think that can be done easily or cheaply with no holding costs, high interest costs or other ongoing fees such as land tax and council rates, then I urge you both to have a go.
Where's my violin? The poor specufestors......oh the humanity!
Underestimated?
Note, I said base cost. That's about the base cost of a bit of Greenfield and bit of infrastructure.
Quote:
and the costs of installing roads, electricity, water, gas if appropriate, parks, as well as kerbing, channeling and storm water, sewerage etc. If you or the Count think that can be done easily or cheaply with no holding costs, high interest costs or other ongoing fees such as land tax and council rates, then I urge you both to have a go.
And how much does a bit of all this cost. Because we a talking about the bit of the cost associated with each block.
Quote:
and the costs of installing roads, electricity, water, gas if appropriate, parks, as well as kerbing, channeling and storm water, sewerage etc. If you or the Count think that can be done easily or cheaply with no holding costs, high interest costs or other ongoing fees such as land tax and council rates, then I urge you both to have a go.
Quote:
statutory fees
Bugger all in Vic and most of Aus. They are up for about 7k per block in council fees.
The Bulls in the pursuit of truth will wind out the story about the one suburb in NSW that pays 27k. Note, in most of Aus...this cost is zip.
Quote:
holding costs, high interest costs or other ongoing fees such as land tax and council rates,
This is where Pete reveals his warped view of the universe. The major developers will quite deliberately keep land out of the hands of the public for periods of 20 to 30 years. It's a game of "keeping off"....yeah sure you collect fees for all those years but. But the land banks run on the idea that the inflation of the price exceeds all the holding costs.
You get it....you poor saps have to pay the cost of the crimes against you. A stinking land baron sits on property for years and thinks it's just, that you the victim have to pay the cost of him planting his fat arse on the land for all those years.
If I sell my house do I make the buyer pay for the costs of my two decades of occupation?.....all the council fees, utility fees etc? Pete would call it "honest" to charge all these fees. That's what I mean, the guy has a warped view of the universe.
Profit before people, profit is god, profit is holy!
Quote:
He has conveniently forgotten to mention that developments are high risk enterprises that might make a small killing or they might make a not so handsome loss and lead to suicide.
The gamblers create their own risk.....why should I pay for it?
As I said, the price of my block was 20k in 1985. Common wages have risen 2.75x since that date.
2.75x 20k = 55k...................but mysteriously we are paying 4x the real cost.
Oh sorry, + GST...............55k x 1.1 = 60.5k.
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
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