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AusGAF 11 - Twice the price, a year late but still moving forward

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Darren870

Darren870

Member
ThoseDeafMutes said:
Thinking of joining the club some day, despite acknowledging that doing so makes me part of the cancer that is killing young people's dreams of home ownership
Click to expand...

It's a bit of a weird one. Positively geared is much better, and you shouldn't sign up with anyone that advertises negatively geared properties.

However, there is nothing wrong with reducing your tax liability.
 
T

ThoseDeafMutes

Member
Darren870 said:
It's a bit of a weird one. Positively geared is much better, and you shouldn't sign up with anyone that advertises negatively geared properties.

However, there is nothing wrong with reducing your tax liability.
Click to expand...

Oh ok I misunderstood the terms. I thought it was referred to as negative gearing regardless of whether the flow was positive or negative. But now it makes a lot more sense.

What's your situation?
 
C

ClivePwned

Member
It's bullshit. People buying houses pushes up the price of housing. Inflation puts up house prices, rising wages put up house prices, more demand puts up prices. More people moving to cities pushes up prices. But you know what would make houses prices worse? Less available housing. First home buyers grants for investors wasn't helpful and it was originally meant as compensation for the GST. But I remember how it also made it easier for people to get loans, it still pushed up prices.
People wanting a housing crash so affordability returns are basically wanting people's mortgages foreclosed. Nice.

If you're in a position to invest for your future, do it. You wanna not be an asshole? Be a good landlord who fixes stuff quickly and let people have a fucking small pet.
 
Darren870

Darren870

Member
ThoseDeafMutes said:
Oh ok I misunderstood the terms. I thought it was referred to as negative gearing regardless of whether the flow was positive or negative. But now it makes a lot more sense.

What's your situation?
Click to expand...

Yea, it's only when your income from the investment is less then what you put in. Eg your mortgage is $3000 per month, but you only can collect $2500. So you can write off the loss every year that you don't make against your income and other investments.

I rent out the spare rooms in my house and last year I was negatively geared. This year it's looking like I'll be positive. Which in my mind is better, but not to my accountant.

Though my whole tax situation is fucked to be honest since I'm American.
 
Darren870

Darren870

Member
ClivePwned said:
It's bullshit. People buying houses pushes up the price of housing. Inflation puts up house prices, rising wages put up house prices, more demand puts up prices. More people moving to cities pushes up prices. But you know what would make houses prices worse? Less available housing. First home buyers grants for investors wasn't helpful and it was originally meant as compensation for the GST. But I remember how it also made it easier for people to get loans, it still pushed up prices.
People wanting a housing crash so affordability returns are basically wanting people's mortgages foreclosed. Nice.

If you're in a position to invest for your future, do it. You wanna not be an asshole? Be a good landlord who fixes stuff quickly and let people have a fucking small pet.
Click to expand...

To be honest, I think negative gearing is a thing of the past here. I think the major problem now is "overseas" investors buying places and leaving them empty or packing them with 10 students. Such bullshit.

And yes, double post because I can.
 
O

OfficerZap

Neo Member
If only state governments would release land and build services...

And also mandate any residential buildings inside x km of the CBD had to be apartment towers....
 
S

Shaneus

Member
Rubixcuba said:
The Cheese TV Facebook page is the best thing to happen in forever. Cant deal with all this nostalgia.
Click to expand...
I bet it's not as good as the Brashs one. They congratulated a little known band from NSW called "Spiderbait" on their Hottest 100 #1 track "Buy Me A Pony" Australia Day weekend!
 
B

bodyboarder

Member
ClivePwned said:
It's bullshit. People buying houses pushes up the price of housing. Inflation puts up house prices, rising wages put up house prices, more demand puts up prices. More people moving to cities pushes up prices. But you know what would make houses prices worse? Less available housing. First home buyers grants for investors wasn't helpful and it was originally meant as compensation for the GST. But I remember how it also made it easier for people to get loans, it still pushed up prices.
People wanting a housing crash so affordability returns are basically wanting people's mortgages foreclosed. Nice.

If you're in a position to invest for your future, do it. You wanna not be an asshole? Be a good landlord who fixes stuff quickly and let people have a fucking small pet.
Click to expand...

How would a crash affect people that own a single house to live in? You only realise a loss when you sell.

If you own more then one home then it's an investment and nothing should be guaranteed.
 
Darren870

Darren870

Member
bodyboarder said:
How would a crash affect people that own a single house to live in? You only realise a loss when you sell.

If you own more then one home then it's an investment and nothing should be guaranteed.
Click to expand...

Err. Well it did impact people in the U S! Basically people would have to start defaulting on their mortgages first and then there would be more empty homes on the market then needed.

In reality though, if a crash was to happen, itwould be because they are building up apartment blocks and townhouses as fast as they can. You can already see a slow down in real estate, there has been a much lower % of completed auctions compared to last year. Likely due to the fact that people are buying more and more off the plan.

Problem with that is that you are overspending on something because its new, and there eventually be more dwellings then required. I can already see it happening around me.

The banks are getting stricter too on who they can lend too, the % needed and the size of the home for investment properties. Which is a good thing!
 
B

bodyboarder

Member
Darren870 said:
Err. Well it did impact people in the U S! Basically people would have to start defaulting on their mortgages first and then there would be more empty homes on the market then needed.

In reality though, if a crash was to happen, itwould be because they are building up apartment blocks and townhouses as fast as they can. You can already see a slow down in real estate, there has been a much lower % of completed auctions compared to last year. Likely due to the fact that people are buying more and more off the plan.

Problem with that is that you are overspending on something because its new, and there eventually be more dwellings then required. I can already see it happening around me.

The banks are getting stricter too on who they can lend too, the % needed and the size of the home for investment properties. Which is a good thing!
Click to expand...

Kind of different here as debt is tied to a person, not the house. My point is more if you take a loan out for house (or anything) you should be prepared to pay what you owe. If you your property value drops so what, your mortgage payments won't change, and the banks don't reasses the house value mid mortgage.
 
S

Shaneus

Member
Darren870 said:
Err. Well it did impact people in the U S! Basically people would have to start defaulting on their mortgages first and then there would be more empty homes on the market then needed.

In reality though, if a crash was to happen, itwould be because they are building up apartment blocks and townhouses as fast as they can. You can already see a slow down in real estate, there has been a much lower % of completed auctions compared to last year. Likely due to the fact that people are buying more and more off the plan.

Problem with that is that you are overspending on something because its new, and there eventually be more dwellings then required. I can already see it happening around me.

The banks are getting stricter too on who they can lend too, the % needed and the size of the home for investment properties. Which is a good thing!
Click to expand...
Yeah, I can see an oversupply issue around where I live, too. Houses frequently get passed in at auction, and investment houses that people have bought to rent out (perfectly good houses for first-home buyers) are typically sitting on the rental market for months before getting rented out. Can see the owners getting fed up and just selling.
 
Darren870

Darren870

Member
bodyboarder said:
Kind of different here as debt is tied to a person, not the house. My point is more if you take a loan out for house (or anything) you should be prepared to pay what you owe. If you your property value drops so what, your mortgage payments won't change, and the banks don't reasses the house value mid mortgage.
Click to expand...

Well yea, its the same in the US though, the debt is tied to you. I agree also, you should only buy what you can afford. However, Variable mortgages are big here, I'd say its probably the most common mortgage. Which means your mortgage payment CAN change and WILL change over the life of your loan.

That of course is tied to the current interest rates.

You want to see crashes in Australia? Look into mining towns here. Talk about people who are FUCKED.
 
R

reptilescorpio

Member
I've already accepted that I won't own a home for at least another decade. Single income family with 2 kids. Ain't happening unless I get a massive pay rise and save for a few more years.

Missed the boat, sucks being a millennial :(
 
Q

quabba

Member
reptilescorpio said:
I've already accepted that I won't own a home for at least another decade. Single income family with 2 kids. Ain't happening unless I get a massive pay rise and save for a few more years.

Missed the boat, sucks being a millennial :(
Click to expand...

Getting into a position where I had a 20% deposit for a house took way too many years of living at home and not travelling a lot. Can't imagine doing it with kids.

Cairns has a really low vacancy rate on rentals (I think it's 1%) which really made it a pain when renting here. Now I jusr have a huge mortgage to worry about instead. But my min repayments did at least go down with the interest rare while the rent on the place I used to have is still increasing.
 
B

bodyboarder

Member
Darren870 said:
Well yea, its the same in the US though, the debt is tied to you. I agree also, you should only buy what you can afford. However, Variable mortgages are big here, I'd say its probably the most common mortgage. Which means your mortgage payment CAN change and WILL change over the life of your loan.

That of course is tied to the current interest rates.

You want to see crashes in Australia? Look into mining towns here. Talk about people who are FUCKED.
Click to expand...

Variable mortgages are fine, interest rates fluctuate and people should be aware when they sign up it could jump up at anytime. Not exactly related to a housing crash though.

reptilescorpio said:
I've already accepted that I won't own a home for at least another decade. Single income family with 2 kids. Ain't happening unless I get a massive pay rise and save for a few more years.

Missed the boat, sucks being a millennial :(
Click to expand...

Yeah it's a crappy situation all around.
 
Darren870

Darren870

Member
bodyboarder said:
Variable mortgages are fine, interest rates fluctuate and people should be aware when they sign up it could jump up at anytime. Not exactly related to a housing crash though.

Yeah it's a crappy situation all around.
Click to expand...

Hmm.. Housing crashes are also tied to crashes in other sectors of the economy.

Lets take Moranbah for example, a mining town gone bust. A quick search shows there are 202 properties available with the average price being $225k for a 4br.

In 2012 when the boom was going on?
Average 4br house was $784k.

That means anyone who didn't get out is now at a loss of $550K+. You can't just say "so what you don't have to sell". A crash massively effects people that only have their own home. Chances are people aren't working there, can't afford the ridiculously high debt and their only saving grace now is that the interest rates are lower.
 
B

bodyboarder

Member
Darren870 said:
Hmm.. Housing crashes are also tied to crashes in other sectors of the economy.

Lets take Moranbah for example, a mining town gone bust. A quick search shows there are 202 properties available with the average price being $225k for a 4br.

In 2012 when the boom was going on?
Average 4br house was $784k.

That means anyone who didn't get out is now at a loss of $550K+. You can't just say "so what you don't have to sell". A crash massively effects people that only have their own home. Chances are people aren't working there, can't afford the ridiculously high debt and their only saving grace now is that the interest rates are lower.
Click to expand...

But when people buy in a place like that where houses weren't $800k a few years earlier surely must have realised the risk. You are also more then likely spending $800k because you are on mining money, not working at McDonald's for minimum wage.

If you aren't prepared for a downturn don't buy a house, rent. But then you are giving up stability of somewhere to live. It's a balancing act.
 
S

Stackboy

Member
reptilescorpio said:
I've already accepted that I won't own a home for at least another decade. Single income family with 2 kids. Ain't happening unless I get a massive pay rise and save for a few more years.

Missed the boat, sucks being a millennial :(
Click to expand...

I don't know if I will ever own a home and I am ok with that.

Australia is bonkers about owning property.
 
G

Gazunta

Member
I still think it was a clerical error that we got OK'd for a home loan. It was pre-GFC but only juuuuust. Now there'd be no way to do it, and I live in the middle of nowhere.
 
Darren870

Darren870

Member
bodyboarder said:
But when people buy in a place like that where houses weren't $800k a few years earlier surely must have realised the risk. You are also more then likely spending $800k because you are on mining money, not working at McDonald's for minimum wage.

If you aren't prepared for a downturn don't buy a house, rent. But then you are giving up stability of somewhere to live. It's a balancing act.
Click to expand...

You'd think! But people are stupid. This all happened in the course of 5 years too! People thought the mine would be open forever, their would always be jobs. Then China slowed down and demand decreased and jobs were laid off.

I'd say the main reason behind the housing crash and recession in the US was because of idiot Americans over borrowing and buying something they couldn't afford. Should they have been allowed to borrow this money? Or course not, and that's on the banks, but surely you would think well I don't make this much so why would I buy this?

Loads of Americans lost their houses because they either lost their jobs, bought something they couldn't afford, market declined so much their was no demand. A mixture of all 3.

In general Australians are much better and smarter then Americans with their money. The consumerism isn't as high here like it is in the US, though it does seem to be increasing. A housing crash would impact everyone, though no where near on the scale of the US. But yes, people who live in their own homes wouldn't be as impacted you'd think.
 
Ozzy Onya A2Z

Ozzy Onya A2Z

Member
Aside from the troubles of actually getting to own a home or moving due to renting it's far better in the long game to own. Negative gearing works for some but the real payoffs are:

1. Rental payments from tenants take care of mortgage interest while you fast track principal to own outright faster.

2. Rentals are currently near 1 to 1 for mortgage payments, crazy stuff.

3. You save massively on compound interest over the life of the loan by reducing the length of the loan term.

4. The big payoff is appreciation over decades and your timing for selling. Retirement money is but your property sale(s) away when you're older. This is not the case with renting at all.


I can understand if your rent is lower and less maintenance/bills surrounding that but you'd have to be pretty consistent with your financial management/investments to produce what real estate does over say 10-25 year cycles.
 
I

industrian

will gently cradle you as time slowly ticks away.
Speaking of buying property, when I go back to Scotland I'm tempted to ask my parents if they'd be interested in buying property in Gold Coast. Then put 10 bunk beds in it and charge working holiday folks $150 a week to stay. I'm pretty sure it'd pay itself off within a few years.
 
Darren870

Darren870

Member
What are some things to do in Cairns? I'm going in two weeks for 5 days.

I like hiking and outdoor stuff and all that jazz.
 
F

Fredescu

Member
ThoseDeafMutes said:
Any scumbags into negative gearing on Ausgaf?
Click to expand...

You can be opposed to the policy but still use it. You have to recognise that the existence of the policy distorts the market so that property prices and rents are all based around it, so it's very difficult to buy a positive cash flow property. If you want to invest in property you have to at least consider it.
 
F

FormallyMegadrive

Member
Darren870 said:
What are some things to do in Cairns? I'm going in two weeks for 5 days.

I like hiking and outdoor stuff and all that jazz.
Click to expand...

Do the sky rail and train. Just do it. So amazing. There's a walk or bus to he crystal cascades which is fucking fantastic, take your swimmers for that. Also spend the money for the bus. The walk there isn't bad but the walk back is a nightmare.

Me and the misses went to cairns dinner theatre which was lovely too, surprisingly. They did a "best of" theatre songs like from Oliver, beauty and the beast, newsies and so on.

Hiring a car and just driving along the captain cook freeway was awesome too. We drove about two hours out one of the days we were there and saw some amazing views.

Aside from he humidity, cairns is awesome
 
Q

quabba

Member
Darren870 said:
What are some things to do in Cairns? I'm going in two weeks for 5 days.

I like hiking and outdoor stuff and all that jazz.
Click to expand...

Megadrive said:
Do the sky rail and train. Just do it. So amazing. There's a walk or bus to he crystal cascades which is fucking fantastic, take your swimmers for that. Also spend the money for the bus. The walk there isn't bad but the walk back is a nightmare.

Me and the misses went to cairns dinner theatre which was lovely too, surprisingly. They did a "best of" theatre songs like from Oliver, beauty and the beast, newsies and so on.

Hiring a car and just driving along the captain cook freeway was awesome too. We drove about two hours out one of the days we were there and saw some amazing views.

Aside from he humidity, cairns is awesome
Click to expand...

These are good suggestions. It is really humid here at the moment so sorry about that.

For hikes/walks alot of them are detailed here
http://www.cairns-australia.com/cairns-bushwalking.html

The Douglas/Smith tracks start a few hundred metres from my house.

A tip If you only want to do the skyrial or train one way to Kuranda there's actually a really cheap bus that will take you back to the city, but going one way train and back on skyrial would be nice.

You'll want to hire a car for the most part will make things easier.

Drive to Port Douglas, it is a really beautiful drive along the coast. If you go on Sunday the markets are on.

Check out Josephine falls too everyone loves sliding down the flat rock slides.

Trip to the reef if you havnt before. Day trip to green Island or night on Fitzroy Island.

Drive to tablelands, have lunch at dairy called gallo where they make their own chocolates and cheese. See curtain fig tree while your there.

Coffee/lunch or stay at palm Cove.

That's the usual stuff I've done when family visits, there's also a ton of other touristy stuff to do like crocodiles, rafting etc.

Oh there's a jungle surf/zip lining in the Daintree, I havn't done it yet,plan to go when my niece visits next.
 
S

Stackboy

Member
Few more hours and I can Xcom 2 it up, my wife is out for the night.

Off to Laneway tomorrow. Major drawcard for me is seeing Battles live again.
 
B

Benzychenz

Member
Ooh EB has Transformers Devastation and Dragon Quest Heroes for $35 each new, that's very tempting.

And I'll be all caught up on PS4 games I want with those two.

JimmyRickard said:
any word on a release for Fire Emblem Fates?
Can't find it anywhere
Click to expand...

No word yet, I'd assume it's swapped with Bravely Second in the release schedule between NoA and NoE, so April sounds likely.
 
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