declining property prices?

[alexlee]

Quite. Most of us keep refinancing our properties. Just looking at how long I've owned a property, for example, would probably tell you what loan I had originally. My current loan balance may not be anywhere near what I have now (lower or higher).

I had an experience like this: one of my IPs is tenanted by an older guy. I did an inspection and he asked nervously whether I was planning to sell. I told him I have no intention to. And I don't. But if someone comes along and offers me way above market.......
Alex

 

[skater]

But if someone comes along and offers me way above market.......
Alex

Couldn't agree more. Everything is for sale, if I'm offered the right price.

 

[HiredGoon]

So what's the solution to provide stable houses for families - the main point of a house, by the way.

Do you think a landlords assets and debt should be visible to their customers, so they can make a choice about their families safety and security?

If fact, this could be worked out as a condition of negative gearing (you provide estimates +/- a few percent to the govt which makes statistics avaible publicly)

Why not make this public knowlege? What have you to hide?

I'd vote for whatever party supported this - stable rental environments would help familes.

 

[Les]

G'day HG,

So what's the solution to provide stable houses for families - the main point of a house, by the way.

I think it works pretty well as is. I've never been offered "over the top" prices that would have me selling. And, if I did, then CGT would soon come along to yomp on the gains. I'm just happy to accumulate CG while providing a roof for those good people who need it.

Do you think a landlords assets and debt should be visible to their customers, so they can make a choice about their families safety and security?

No. Why should a tenant have any more "warm and fuzzies" than the average landlord has? But, maybe a TICA for crook landlords - I wouldn't be against that.

If fact, this could be worked out as a condition of negative gearing (you provide estimates +/- a few percent to the govt which makes statistics avaible publicly)

Hmm - now and then, you make good points - but, once more, you just lost me completely !! The Govt. has MORE THAN ENOUGH detail about me already. What more do they need? And what more does "the public" need?

Why not make this public knowlege? What have you to hide?

Me? Nothing - but I'm not about to broadcast every little detail with no realistic benefit. I'm a good landlord who appreciates a good tenant. Nuff said.

I'd vote for whatever party supported this - stable rental environments would help familes.

My tenants have been VERY stable - and they didn't need all of this extra bumph !! Tenants have the upper hand in most situations (legally) - I'm wondering why you think they need MORE??? But, yes, bring on a TICA for crook landlords - then leave it at that.

Regards,

 

[alexlee]

Have the tenant give me copies of their bank statements and a full breakdown of where they're spending their money so that I can determine whether THEY are stable or not, and I'll consider disclosing my leverage. Why should I have to put up with tenants who squander their money and can't pay me rent? Would tenants be willing to put on public record their income and expenses? What do they have to hide, you think?
Alex

 

[HiredGoon]

Every place I've rented in Adelaide I've had to state my income levels and pay an upfront bond.

Today a bond to RENT a house is more cash down than you need to BUY a house!

My records are given up as standard, but it is very seldom given from the landlords. Why not open it up?

 

[Bandita]

I've analysed the situation, made my choice and taken action.

If I think prices are too high, my action is to not buy. And I haven't.

Of course, some of you think that isn't a valid option and everyone should just always buy, at whatever price. I've even been told that I can't judge whether prices are too high because I don't own property.

So if I thought prices were too high, just buy anyway... but what happens if I find out I was right? Wow I find out I was right all along but now I'm stuffed!

You say this, while saying at the same time commenting on Adelaide (where you live)

South Australia is hardly overcrowded, almost everyone can afford a decent house with not much work.

Based on that, if you can afford a decent house without much work, what prices are you complaining about?!?

Now, I don't know much of the Adelaide market - but just did a search on inner market (under 10kms from CBD) - for 3 bedroom houses under $300k and came up with hundreds of results.......I don't see Adelaide as an inaffordable city by any means with those types of results - in fact you might be in for a hefty boom.....I think the crash you're looking for (in Adelaide at least) is not going to happen anytime soon......

Cheers,
Jen

 

[wylie]

HG, you want landlords to show their stuff to assure the tenant that the landlord is stable and will not sell the house from under them.

How about tenants showing their stuff and committing to more than a six month lease? Several years ago, we were churning tenants each six months. When the market is different and tenants have plenty of houses to chose from, it is the poor landlord who is left with possibly a couple of weeks of empty house every six months. Then a few weeks of rent to pay to the PM to re-let it.

Where is the stability for the landlord? I think tenants think we are all rich fat cats sitting on piles of gold..... far from the truth. Plenty of times in the 25 years I have been a landlord where we have not been able to afford to put petrol in the car because a tenant has decided to up and leave.

It cuts both ways.

Wylie

 

[VYBerlinaV8]

Every place I've rented in Adelaide I've had to state my income levels and pay an upfront bond.

Today a bond to RENT a house is more cash down than you need to BUY a house!

My records are given up as standard, but it is very seldom given from the landlords. Why not open it up?

This is quite an interesting concept, but frankly a fairly useless one. Most landlords have very complex financial affairs compared to the average renter, so I doubt most renters would understand what's actually going on, nor would they be able to use this information to make a useful decision. And so what if they could? Also, the owner of the property can sell whenever they choose, for whatever reason they choose. Don't like it? Buy your own house.

Always remember the golden rule: he who has the gold makes the rules...

 

[Les]

C'mon HG,

Today a bond to RENT a house is more cash down than you need to BUY a house!

Umm, to BUY the house usually needs a wee bit more than that.

I've gone to contract with as little as $20 - but to achieve settlement requires a helluva lot more, based on a number of factors (the deposit amount, the LVR, costs to settle, LMI or not, stamp duty, etc.) It isn't a walk in the park. Just be thankful that there are those landlords who are prepared to wait for "the gains down the track" thus providing YOU with a place to rent meanwhile.

At times, your prostestations almost sound reasonable. But this time is NOT one of them,

Regards,

 

[Andrew_A]

Try buying a house and then say it costs less than a rental bond.. It might well but I would like to stay in that rental house if it was the case!

Purchase costs were around 4.5% of contract price for me this year on an IP, even with a 0% deposit that's a roll of coins.

 

[jingo]

While I could buy now and be assured of not making a nominal lost if I held it for long enough, there are holding costs for property over that time, there are opportunity costs of other investments..

Hired Goon, it seems you are missing the opportunity to invest in more term deposits! I know which opportunity I would rather take!

Good luck with your strategy, it doesn't sound like it's making you much money! Now how much interest are you earning on that CBA term deposit?????

Your strategy for investing in the share market sounds really dicey. Why don't you just invest for the long term. It takes a lot of the second guessing out of the process, and who knows, you may just achieve some capital growth in the process. (Sorry if this terminology is not in your vocabulary!).

Regards Jason.

 

[jingo]

So what's the solution to provide stable houses for families - the main point of a house, by the way..

Who said that is what a house is for?? It is to leverage against the increasing equity and to buy more to leverage against the increasing equity, and to buy more to leverage against the increasing equity..... and then to retire on an ever increasing income stream!!

Do you think a landlords assets and debt should be visible to their customers, so they can make a choice about their families safety and security..

You are making me laugh even harder HG!!!!!!! And then I read this...

If fact, this could be worked out as a condition of negative gearing (you provide estimates +/- a few percent to the govt which makes statistics avaible publicly).

Now I am on the floor, clasping my side which is developing a stitch!

Why not make this public knowlege? What have you to hide?

I'd vote for whatever party supported this - stable rental environments would help familes.

Would you think a prospectus would be a good idea for every rental property available for rent in Australia? I can just see the front cover now - a beautiful picture of something natural - just like an investment prospectus!

Now I am still on the floor clutching my side, and hyperventalating. Oh, HG, please don't do this to me again, I am in pain!!

 

[HiredGoon]

You say this, while saying at the same time commenting on Adelaide (where you live)

South Australia is hardly overcrowded, almost everyone can afford a decent house with not much work.

Based on that, if you can afford a decent house without much work, what prices are you complaining about?!?

I was talking about to rent. Almost everyone I know that has at least 1 full time worker in the family can rent a decent house in Adelaide. A lot of household's don't work, and a lot don't have much money because they're on the pension or something.

South Australia is low-density for even low-density Australia. Adelaide is a sprawl, there's so much suburban land it's not funny. Sheep paddocks within 15km of the CBD with suburbs on all sides. It is wasted for cars and stupid designs and some parts are very ugly but it provides cheap suburban life.

Adelaide wages are lower and there is a lower workforce participation rate, so there is less money to spend, and a huge supply (land per person) so Adelaide SHOULD be cheap to live in, and rents reflect that.

Rents are paid for out of wages.

Prices are paid for out of debt.

Often by people on Sydney wages, who look at Adelaide and think it is cheap and then bid up the prices. So Adelaide people can either struggle their guts out to compete if they want to buy, or as I try to suggest - just keep renting a nice place for what it has always cost relative to wages. That's stayed the same because it has not been infected with the debt-madness that has swept up this country like buying and selling houses has.

 

[HiredGoon]

Purchase costs were around 4.5% of contract price for me this year on an IP.

So get a 105% loan and spend the 0.5% on a plasma.

 

[Andrew_A]

So get a 105% loan and spend the 0.5% on a plasma.

You can get a bond loan.

 

[HiredGoon]

Ah, we're all debt junkies now - no money down for anything anymore!

 

[want2bewealthy]

Ah, we're all debt junkies now - no money down for anything anymore!

There is a BIG difference in disposable or depreciating debt vs appreciating debt with tax cuts and depreciation and a long term goal of high growth, higher growth than you will be paying on your loan.
this groeth in turn gets larger and larger with inflkation, rental yields rising with the times etc etc.

remember, good debt vs bad debt.
I could go out and buy a new Staesman sedan today If I really wanted to but Im not going to because thats what I see in my eyes as "bad debt" that depreciates rapidly and leaves you fighting the time value of money, Ill buy one when Im rich and cant get rid of my disposable income fast enough

 

[alexlee]

A musician in a Statesman? Interesting picture.

 

[Dazz]

Someone once wrote....."You are either in debt or in retirement".

Any other position is non-productive....and even then, some of the LOE proponents seem to be proving this to be wrong also.