The Australian housing bubble furphy

buster said:
Once again you prove you have no understanding. Just because the tax rate is 99%. It does not mean that is how much tax you pay. Heard of Tax free threshold, tax brackets Building allowance and depreciation, FMDs, DPPs, supperannuation, LVRs, defered income, warehousing, EQUITY it is tax free at 99% tax rate great deduction. As you cant mount a sensible argument to justify your posistion, you have to resort to nonsense. Dont tell people who have done it, it cant be done. You can put brains in a pumpkin but you cant make them think.
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I never said it can't be done. So you bring in irrelevant stuff. We didn't say the top tax bracket was 99% we said that the tax rate ended up being 99%.

You can't just bring in all this complicated stuff to a simple example and try and claim the underlying principle is wrong without backing it up.

Next you'll be telling me there was a global recession and interest rates fell ! What about that !

The point was that the price of the house relevant to your displosable income after tax does matter. In the second example the payments were probably more than you'd earn. Where the previous poster was claiming that it didn't matter what the multiple was because if the tax rate was 99% the house would be basically free.

I don't even know what the hell you're trying to say ? Are you saying property is not expensive ? That price of a property doesn't matter because you just get a tax break ? I'd like to see you start over again today at todays prices.. you bought in 1990, well done.
 
Beebop said:
I never said it can't be done. So you bring in irrelevant stuff. We didn't say the top tax bracket was 99% we said that the tax rate ended up being 99%.

You can't just bring in all this complicated stuff to a simple example and try and claim the underlying principle is wrong without backing it up.

Next you'll be telling me there was a global recession and interest rates fell ! What about that !

The point was that the price of the house relevant to your displosable income after tax does matter. In the second example the payments were probably more than you'd earn. Where the previous poster was claiming that it didn't matter what the multiple was because if the tax rate was 99% the house would be basically free.

I don't even know what the hell you're trying to say ? Are you saying property is not expensive ? That price of a property doesn't matter because you just get a tax break ? I'd like to see you start over again today at todays prices.. you bought in 1990, well done.
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You just dont get it Beepop. I dont think in terms of money I think of acquiring assetts. I think in terms of net wealth. I could pay 200k+ in tax if I wanted to and not claim any deductions. How does that make it a better idea to buy a house, than if I use strategies to minimize my tax so that I stay below about 20cents in the dollar. I prefer to pay about 10k tax and instead of paying the taxman use the other 190k holding apperciating assets or leveraging, How does reducing your net wealth by about 300k make buying a house more viable. Disposable income and taxable income are completely different. I can liquidate assets if I need to but I usually only need to do that about every three years if it is a low income year but than I will be in lower tax bracket any way. You only pay tax when you realize profit, but you can still access eqiuty in that asset. I have acesss to far more money than what my taxable income is. The less tax I pay the more money I have access to. You are not the only one who has trouble comprehending this even some bank managers and mortgage brokers have trouble understanding this.
 
If property is so overpriced why you are so fixated on buying one when 'values become reasonable?'

You don't understand that this mentality that 'I will have to buy a house' means that prices are always supported...
 
Wunderbar said:
If property is so overpriced why you are so fixated on buying one when 'values become reasonable?'

You don't understand that this mentality that 'I will have to buy a house' means that prices are always supported...
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b.c as I have stated before owning a home is a forced savings plan and the interest you pay also declines, while rent will usually only ever increase.

there is a lot of security in owning a home too, and chicks, even if they won't admit it, find a young man who owns a property sexy. see it is all part of my master plan. i want to own a house so i can pick up chicks. you figured me out.
 
buster said:
You just dont get it Beepop. I dont think in terms of money I think of acquiring assetts. I think in terms of net wealth. I could pay 200k+ in tax if I wanted to and not claim any deductions. How does that make it a better idea to buy a house, than if I use strategies to minimize my tax so that I stay below about 20cents in the dollar. I prefer to pay about 10k tax and instead of paying the taxman use the other 190k holding apperciating assets or leveraging, How does reducing your net wealth by about 300k make buying a house more viable. Disposable income and taxable income are completely different. I can liquidate assets if I need to but I usually only need to do that about every three years if it is a low income year but than I will be in lower tax bracket any way. You only pay tax when you realize profit, but you can still access eqiuty in that asset. I have acesss to far more money than what my taxable income is. The less tax I pay the more money I have access to. You are not the only one who has trouble comprehending this even some bank managers and mortgage brokers have trouble understanding this.
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you bought houses in 1990 and now live off the income. I really don't care about your boring personal success stories because you are not in the same situation to me.
 
Beebop said:
you bought houses in 1990 and now live off the income. I really don't care about your boring personal success stories because you are not in the same situation to me.
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...and what do you say to those young guns who have actually become property millionaires in the noughties? :confused:

You'll find it really boring around here on the forum, 'cause it is pretty much how to get wealthy through property.

Your "situation" is all in the space between your ears......but that's fine, LL's need people with the same attitude as you, to rent their properties. :rolleyes:
 
Beebop said:
...there is a lot of security in owning a home too, and chicks, even if they won't admit it, find a young man who owns a property sexy. see it is all part of my master plan. i want to own a house so i can pick up chicks.
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Ah so really you are just here for tips on how to pick up chicks? :p
All those posts you made are just an expression of frustration about being desperate & dateless?
Well done :)
Maybe while you are saving a deposit you can impress them with your "get-ahead", "moving forward", "successful mindset" - chicks love that too.
 
Propertunity said:
...and what do you say to those young guns who have actually become property millionaires in the noughties? :confused:

You'll find it really boring around here on the forum, 'cause it is pretty much how to get wealthy through property.

Your "situation" is all in the space between your ears......but that's fine, LL's need people with the same attitude as you, to rent their properties. :rolleyes:
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early noughties was also ten years ago.
 
Beebop said:
early noughties was also ten years ago.
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It has been the same for the past decade, the one before that, the one before that etc etc.

Pull your head out and either buy something or stop trying to convince those of us who have done it, and those who are currently just starting out that we are fools.

Do you think you will change the mind of someone who is determined to get into the market? Really???
 
Beebop said:
there is a lot of security in owning a home too, and chicks, even if they won't admit it, find a young man who owns a property sexy. see it is all part of my master plan. i want to own a house so i can pick up chicks. you figured me out.
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Dood! You’re doing it wrong. Rent a flash pad for half the cost of a mortgage and LIE about owning it, lease a 118i BMW instantly de-badge it and get the M-sport bodykit and wheels (these can be sourced for cheap, replicas) have a magnum bottle of veuve handy... lies get the womenz
 
Beebop said:
omg.... it does MEAN something. maybe b.c it is not the ratio of disposable income to house prices is what it doesn't take those things into account
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That sentence makes no sense.

Beebop said:
why the hell would it account for different houses being built ? why would it care if the woman is working when it is not displosable household income ? do you know anything about statistics at all ?
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You are totally missing my point. Income to house prices is ONE measure being used, mainly by D&Gers and tabloid newspapers, but it doesn't give a full picture of the housing market.

To get a picture of the market, most rational people will look at a number of different statistics, rather than just one. An experienced investor wouldn't look at one flawed statistic and draw a conclusion.
 
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