Not worth investing in property

Could someone tell me what the point is in investing in property? Just received my land tax bill today for $7500! I understand many of you would be paying triple this amount but it seems to me the Government does not want you to get ahead in life. They want us to be self managed retirees but what are the incentives of working hard, investing now for the future, and then to be taxed to the max.

I have lost my passion for property and no longer believe you can make a return from buy and hold.

When you purchase a property their is stamp duty.

When you hold their is land tax, rates, water rates, insurance, maintenance.

When you decide to sell their is CGT.

It seems to me the tax man gets more of the cut than me??

I am better off working 9 to 5, blow my money now and enjoy life and get the pension when I am 65.

Does any one agree or am I just grumpy for no reason?
 
Most of the taxes you mentioned are tax deductable if that's any consolation. Cheer up, you're way in front of most people.
 
I understand Datto but still need to find the money. Right now there is no real incentive to invest for the future. Let the government pay you a wage come pension time.

It would be nice if they "looked after us" for not living off the government when we are older.

Leave the stamp duty but scrap land tax, or vice versa.
 
You can hold millions worth of property and not pay any land tax. My land tax bill was $300 (though I don't have that big a portfolio).
But in QLD for example, you can have an unlimited amount of property without paying land tax, as long as you structure it right.
 
We don't live in a perfect world Hodge. Property investment (even with the pit falls) will make you richer than in the alternative lifestyle you mentioned. We are property investors Hodge. You, me and a shti load of of others. Don't let us down!
 
With shares you get
- no land tax
- no stamp duty
- no broken toilets
- franking credits
- ease of sale
- can sell part of your parcel

But,
- dangerous to leverage
- dangerous to hold

If you want to keep with property just try to structure so you minimise the land tax and/or think of it as a cost of doing business. It shouldn't come as a surprise, but plan for it.
 
I don't understand the sentiment. If you've done it for, say, more than 10 years, you must see that this property investing thing will make you much more than standard saving.

If you have other investment opportunities that give better returns, commercial, development, business, whatever, go for that.

If you think it's not worth it, sell. If it's the best option you have, the returns must still be outweighting the costs. If you have better alternatives, sell and choose those.

What's to complain about?
 
My problem is all my properties are in Victoria. Purchasing interstate isn't really for me. From my understanding purchasing inside a trust doesn't save on Land tax, and if it did the extra cost for the trust fees would just about balance things out.
 
My problem is all my properties are in Victoria. Purchasing interstate isn't really for me. From my understanding purchasing inside a trust doesn't save on Land tax, and if it did the extra cost for the trust fees would just about balance things out.

Isn't this like complaining repairs on your Merc is expensive because you just HAVE to drive imported cars? Or, for that matter, people complaining they can't get ahead because investing just isn't 'them'?
 
My problem is all my properties are in Victoria. Purchasing interstate isn't really for me. From my understanding purchasing inside a trust doesn't save on Land tax, and if it did the extra cost for the trust fees would just about balance things out.

Thats your problem. Try QLD. NT maybe better as no land tax.
 
I don't understand the sentiment. If you've done it for, say, more than 10 years, you must see that this property investing thing will make you much more than standard saving.

If you have other investment opportunities that give better returns, commercial, development, business, whatever, go for that.

If you think it's not worth it, sell. If it's the best option you have, the returns must still be outweighting the costs. If you have better alternatives, sell and choose those.

What's to complain about?

That's the thing - I've only been investing for 5 years and yet to experience a bloody boom or real growth. :rolleyes: All my properties are in good locations, 15km to CBD, walking distance to transport, etc. I think I have a while yet to experience growth with all these job losses and factories closing.
 
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