Housing cost worst in world

[Ext User(ewq)]

yeah man, anything to cut the friggin' tax bill a bit,
and if I can live in it afterwards...
aaahhh!


"Greg Locock" <greglocock@yahoo.com.au> wrote in message
news:Xns975DAE8792D6377777777777777777777@211.29.1 33.50...
"ewq" <No@Thanks> wrote in news:43df2618$1@quokka.wn.com.au:

> We haggled & settled on $325k sale price, and they
> rent back for $170 a week. We warned 'em our crap bank (Homepath)
> takes months for finance approval, they were happy to wait...
> ...and everyone lived happily ever after...
> ...until the property price crash !!!

Are you handing any other capital out at 2.7% interest (approximately)? I'm
good for it. Honest.

Cheers

Greg Locock

[Ext User(B J Foster)]

http://www.news.com.au/story/0,10117,17951471-421,00.html

[Ext User(The Old Bloke)]

This is such a shame for younger people in Australia. I read that the
average repayments on a house are about $1000 per month.

I think one of the main reasons for the price hike is the top marginal tax
rate, which has encouraged the more wealthy to "invest" in rental properties
to benefit from negative gearing.

Heaven help the young if interest rates rise.


"B J Foster" <bjfoster@yahoo.com> wrote in message
news:43da96cd$0$10626$afc38c87@news.optusnet.com.a u...
> http://www.news.com.au/story/0,10117,17951471-421,00.html

[Ext User(Bonzo)]

Actually, if interest rates rise, which I'm looking forward to, house prices
(Share prices as well) should tumble.

Bring on the mortgagee auctions I say!

Regards

Bonzo

"The Old Bloke" <no@remove.com> wrote in message
news:UFzCf.228919$V7.33728@news-server.bigpond.net.au...
> This is such a shame for younger people in Australia. I read that the
> average repayments on a house are about $1000 per month.
>
> I think one of the main reasons for the price hike is the top marginal
> tax rate, which has encouraged the more wealthy to "invest" in rental
> properties to benefit from negative gearing.
>
> Heaven help the young if interest rates rise.
>
>
> "B J Foster" <bjfoster@yahoo.com> wrote in message
> news:43da96cd$0$10626$afc38c87@news.optusnet.com.a u...
>> http://www.news.com.au/story/0,10117,17951471-421,00.html
>
>

[Ext User(ewq)]

bring on the crash!

on a more personal note, it's great! built a 4x2 house in Perth in 1996 for
$118k, just been valued at $300k (660 sqm block 10km from GPO), bought a
house in rural W.A. in Jan 2003 for $101k, and sold it last week for $175k,
signed an option to buy a hobby farm in rural W.A. in August '05 for $325k,
settled last week, and valuer says we're ahead $50k already. Not as good as
Sydney, but not too shabby.

love inflation, love cycles, love this group.
:)

[Ext User(phil_herring@yahoo.com.au)]

The Old Bloke wrote:

> I think one of the main reasons for the price hike is the top marginal tax
> rate, which has encouraged the more wealthy to "invest" in rental properties
> to benefit from negative gearing.

The effect of negative gearing is grossly exaggerated. I know a lot of
people who think that they're ahead if the price of their negatively
geared property has risen. Ask them to deduct the cash they've lost to
be negatively geared, and it's often a different picture.

It's rather like asking home owners how much they paid for their homes.
They'll invariably quote the sale price. However, most of them paid a
lot more than that; interest seems to be somehow irrelevant.

Besides, low interest rates and falling unemployment are probably the
key factors in the housing bubble. Easy credit and the feeling that
you'll never be out of a job seem to inspire people to take more risks
than they otherwise would.


-- Phil

[Ext User(The Old Bloke)]

<phil_herring@yahoo.com.au> wrote in message
news:1138419161.115823.187860@g47g2000cwa.googlegr oups.com...
> The Old Bloke wrote:
>
>> I think one of the main reasons for the price hike is the top marginal
>> tax
>> rate, which has encouraged the more wealthy to "invest" in rental
>> properties
>> to benefit from negative gearing.
>
> The effect of negative gearing is grossly exaggerated. I know a lot of
> people who think that they're ahead if the price of their negatively
> geared property has risen. Ask them to deduct the cash they've lost to
> be negatively geared, and it's often a different picture.
>
> It's rather like asking home owners how much they paid for their homes.
> They'll invariably quote the sale price. However, most of them paid a
> lot more than that; interest seems to be somehow irrelevant.
>
> Besides, low interest rates and falling unemployment are probably the
> key factors in the housing bubble. Easy credit and the feeling that
> you'll never be out of a job seem to inspire people to take more risks
> than they otherwise would.
>
>
> -- Phil

Hi Phil,

I agree that the benefits of *negative* gearing are overstated. I agree
that many people just look at the purchase price and the sale price and
erroneously call that a profit.

A couple of decades ago, Labor stopped negative gearing tax breaks. House
prices plummeted, and rents soared, and Labor was forced to reintroduce
negative gearing tax breaks.

Doug

[Ext User(The Old Bloke)]

Hi Bonzo,

I agree that there will always be opportunities to make money. But as an
atheist, I have a little more concern for concern for those that will be
hurt.

Doug


"Bonzo" <bonzoo@ozemail.com.au> wrote in message
news:43dac90a$0$18589$5a62ac22@per-qv1-newsreader-01.iinet.net.au...
> Actually, if interest rates rise, which I'm looking forward to, house
> prices (Share prices as well) should tumble.
>
> Bring on the mortgagee auctions I say!
>
> Regards
>
> Bonzo
>
> "The Old Bloke" <no@remove.com> wrote in message
> news:UFzCf.228919$V7.33728@news-server.bigpond.net.au...
>> This is such a shame for younger people in Australia. I read that the
>> average repayments on a house are about $1000 per month.
>>
>> I think one of the main reasons for the price hike is the top marginal
>> tax rate, which has encouraged the more wealthy to "invest" in rental
>> properties to benefit from negative gearing.
>>
>> Heaven help the young if interest rates rise.
>>
>>
>> "B J Foster" <bjfoster@yahoo.com> wrote in message
>> news:43da96cd$0$10626$afc38c87@news.optusnet.com.a u...
>>> http://www.news.com.au/story/0,10117,17951471-421,00.html
>>
>>
>
>

[Ext User(B J Foster)]

The Old Bloke wrote:

> Hi Bonzo,
>
> I agree that there will always be opportunities to make money. But as an
> atheist, I have a little more concern for concern for those that will be
> hurt.
>
> Doug

It's better being religious - you can simply have your sins forgiven
each Sunday (The rest of the world have to live with them...)

>
>
> "Bonzo" <bonzoo@ozemail.com.au> wrote in message
> news:43dac90a$0$18589$5a62ac22@per-qv1-newsreader-01.iinet.net.au...
>
>>Actually, if interest rates rise, which I'm looking forward to, house
>>prices (Share prices as well) should tumble.
>>
>>Bring on the mortgagee auctions I say!
>>
>>Regards
>>
>>Bonzo
>>

[Ext User(blewglew)]

The Old Bloke wrote:
> Hi Bonzo,
>
> I agree that there will always be opportunities to make money. But as an
> atheist, I have a little more concern for concern for those that will be
> hurt.
>
> Doug

Geez, I thought you would treat Bonzo as role model as he just stood up
for what he believes in. :-)

[Ext User(The Old Bloke)]

LOL. But yes, it is tough having no one to forgive me. -:)

"B J Foster" <bjfoster@yahoo.com> wrote in message
news:43daf55d$0$25697$afc38c87@news.optusnet.com.a u...
> The Old Bloke wrote:
>
>> Hi Bonzo,
>>
>> I agree that there will always be opportunities to make money. But as an
>> atheist, I have a little more concern for concern for those that will be
>> hurt.
>>
>> Doug
>
> It's better being religious - you can simply have your sins forgiven each
> Sunday (The rest of the world have to live with them...)
>
>>
>>
>> "Bonzo" <bonzoo@ozemail.com.au> wrote in message
>> news:43dac90a$0$18589$5a62ac22@per-qv1-newsreader-01.iinet.net.au...
>>
>>>Actually, if interest rates rise, which I'm looking forward to, house
>>>prices (Share prices as well) should tumble.
>>>
>>>Bring on the mortgagee auctions I say!
>>>
>>>Regards
>>>
>>>Bonzo
>>>

[Ext User(The Old Bloke)]

"blewglew" <blewglew@hotmail.com> wrote in message
news:1138426302.079842.227360@g44g2000cwa.googlegr oups.com...
> The Old Bloke wrote:
>> Hi Bonzo,
>>
>> I agree that there will always be opportunities to make money. But as an
>> atheist, I have a little more concern for concern for those that will be
>> hurt.
>>
>> Doug
>
> Geez, I thought you would treat Bonzo as role model as he just stood up
> for what he believes in. :-)
>

He *is* a role model, but not for me.

[Ext User(Xylord)]

On Sat, 28 Jan 2006 12:29:47 +1100, "Bonzo" <bonzoo@ozemail.com.au> wrote:

>Bring on the mortgagee auctions I say!

Fine exampl of that higher morality.you spruik
so much about: F*ck you Jack I am inboard.

regards Xylord

[Ext User(B J Foster)]

Good, then you'll probably behave yourself.
It's the fundies that worry me ;-)

The Old Bloke wrote:

> LOL. But yes, it is tough having no one to forgive me. -:)
>
> "B J Foster" <bjfoster@yahoo.com> wrote in message
> news:43daf55d$0$25697$afc38c87@news.optusnet.com.a u...
>
>>The Old Bloke wrote:
>>
>>
>>>Hi Bonzo,
>>>
>>>I agree that there will always be opportunities to make money. But as an
>>>atheist, I have a little more concern for concern for those that will be
>>>hurt.
>>>
>>>Doug
>>
>>It's better being religious - you can simply have your sins forgiven each
>>Sunday (The rest of the world have to live with them...)
>>
>>
>>>
>>>"Bonzo" <bonzoo@ozemail.com.au> wrote in message
>>>news:43dac90a$0$18589$5a62ac22@per-qv1-newsreader-01.iinet.net.au...
>>>
>>>
>>>>Actually, if interest rates rise, which I'm looking forward to, house
>>>>prices (Share prices as well) should tumble.
>>>>
>>>>Bring on the mortgagee auctions I say!
>>>>
>>>>Regards
>>>>
>>>>Bonzo
>>>>
>
>
>

[Ext User(The Old Bloke)]

Amen


"B J Foster" <bjfoster@yahoo.com> wrote in message
news:43db145b$0$9138$afc38c87@news.optusnet.com.au ...
> Good, then you'll probably behave yourself.
> It's the fundies that worry me ;-)
>
> The Old Bloke wrote:
>
>> LOL. But yes, it is tough having no one to forgive me. -:)
>>
>> "B J Foster" <bjfoster@yahoo.com> wrote in message
>> news:43daf55d$0$25697$afc38c87@news.optusnet.com.a u...
>>
>>>The Old Bloke wrote:
>>>
>>>
>>>>Hi Bonzo,
>>>>
>>>>I agree that there will always be opportunities to make money. But as
>>>>an atheist, I have a little more concern for concern for those that
>>>>will be hurt.
>>>>
>>>>Doug
>>>
>>>It's better being religious - you can simply have your sins forgiven each
>>>Sunday (The rest of the world have to live with them...)
>>>
>>>
>>>>
>>>>"Bonzo" <bonzoo@ozemail.com.au> wrote in message
>>>>news:43dac90a$0$18589$5a62ac22@per-qv1-newsreader-01.iinet.net.au...
>>>>
>>>>
>>>>>Actually, if interest rates rise, which I'm looking forward to, house
>>>>>prices (Share prices as well) should tumble.
>>>>>
>>>>>Bring on the mortgagee auctions I say!
>>>>>
>>>>>Regards
>>>>>
>>>>>Bonzo
>>>>>
>>
>>

[Ext User(phil_herring@yahoo.com.au)]

The Old Bloke wrote:

> A couple of decades ago, Labor stopped negative gearing tax breaks. House
> prices plummeted, and rents soared, and Labor was forced to reintroduce
> negative gearing tax breaks.

If I recall correctly, Ross Gittins debunked that story a while ago.

Actually, turns out it's still on the net:

http://www.smh.com.au/articles/2003/08/24/1061663676588.html


-- Phil

[Ext User(The Old Bloke)]

<phil_herring@yahoo.com.au> wrote in message
news:1138441429.692526.170930@g47g2000cwa.googlegr oups.com...
> The Old Bloke wrote:
>
>> A couple of decades ago, Labor stopped negative gearing tax breaks.
>> House
>> prices plummeted, and rents soared, and Labor was forced to reintroduce
>> negative gearing tax breaks.
>
> If I recall correctly, Ross Gittins debunked that story a while ago.
>
> Actually, turns out it's still on the net:
>
> http://www.smh.com.au/articles/2003/08/24/1061663676588.html
>
>
> -- Phil

That's an opinion. I respect everyone's opinion, but I don't agree.

Regards to you Phil
Doug

[Ext User(Bonzo)]

"Xylord" <xylord@yahooNOTTHIS.com> wrote in message
news:ur2mt1t4lru7k71ji6kvavptfau5psna7h@4ax.com...
> On Sat, 28 Jan 2006 12:29:47 +1100, "Bonzo" <bonzoo@ozemail.com.au> wrote:
>
>>Bring on the mortgagee auctions I say!
>
> Fine exampl of that higher morality.you spruik
> so much about: F*ck you Jack I am inboard.
>
> regards Xylord

Earth to Xylord ... earth to Xylord ... please do not assume what my beliefs
are as I have never revealed them on this newsgroup. How many times do I
have to repeat this before it gets into your skull?

Regards

Bonzo

[Ext User(savgoose)]

i thought i saw a link on here that showed the amount of tax the gov missed
out on due to negative gearing. seemed pretty impressivve.

<phil_herring@yahoo.com.au> wrote in message
news:1138419161.115823.187860@g47g2000cwa.googlegr oups.com...
> The Old Bloke wrote:
>
> > I think one of the main reasons for the price hike is the top marginal
tax
> > rate, which has encouraged the more wealthy to "invest" in rental
properties
> > to benefit from negative gearing.
>
> The effect of negative gearing is grossly exaggerated. I know a lot of
> people who think that they're ahead if the price of their negatively
> geared property has risen. Ask them to deduct the cash they've lost to
> be negatively geared, and it's often a different picture.
>
> It's rather like asking home owners how much they paid for their homes.
> They'll invariably quote the sale price. However, most of them paid a
> lot more than that; interest seems to be somehow irrelevant.
>
> Besides, low interest rates and falling unemployment are probably the
> key factors in the housing bubble. Easy credit and the feeling that
> you'll never be out of a job seem to inspire people to take more risks
> than they otherwise would.
>
>
> -- Phil
>

[Ext User(Tim Josling)]

savgoose wrote:
> i thought i saw a link on here that showed the amount of tax the gov missed
> out on due to negative gearing. seemed pretty impressivve.

True but it is not the whole story. What about all the tax people have
paid on nominal interest that barely covers inflation?

Ask yourself: why has the government not got any interest in allowing
for inflation in tax legislation? Here is one clue: bracket creep, which
allows them to announce fake tax cuts every few years, while overall tax
burdens rise inexorably.

Tim Josling