The reserve banks warning on deposit bonds, that buying a property to speculate even though you cannot afford to buy the property is dangerous.
It is amazing how many people purchase properties that they cannot afford, normally due to bad advice.
The first rule on purchasing off the plan is only buy what you can afford to buy today, otherwise you will run into major problems.
The second rule should be to be selective on what you purchase.
Look for properties with a good owner occupier mix, think why whould a tenant what to rent this property over another.
I also think the Government should be far more concerned with how many people will have enough to retire on, current figure indicate that that vast majority will not have enough to live on and with the average superannuation payout being around $56,000. Clearly we cannot afford to rest on our laurels.
We need to encourage people to purchase property for long term investment. Perhaps the government should drop Capital gains tax for anyone who owns a property for say 15 years as an insentive for people to invest long term.
Currently we have one of the worst savings records in the industrial world clearly this has to change.
Nigel Kibel
The Investment Institute
It is amazing how many people purchase properties that they cannot afford, normally due to bad advice.
The first rule on purchasing off the plan is only buy what you can afford to buy today, otherwise you will run into major problems.
The second rule should be to be selective on what you purchase.
Look for properties with a good owner occupier mix, think why whould a tenant what to rent this property over another.
I also think the Government should be far more concerned with how many people will have enough to retire on, current figure indicate that that vast majority will not have enough to live on and with the average superannuation payout being around $56,000. Clearly we cannot afford to rest on our laurels.
We need to encourage people to purchase property for long term investment. Perhaps the government should drop Capital gains tax for anyone who owns a property for say 15 years as an insentive for people to invest long term.
Currently we have one of the worst savings records in the industrial world clearly this has to change.
Nigel Kibel
The Investment Institute
