What stage of the property cycle are we at now?

[Ms Jade]

Thanks, Shadow! How slow am I to have not noticed that?

 

[AUSPROP...]

Nah, it doesn't come to that much (land tax being the most significant), but they're all tax deductible costs, and pretty much canceled out by the depreciation deductions anyway.

Council Rates: 2000
Water Rates: 1000
Insurance: 2000
PM Fees: 3000
Land Tax: 10000 (Assume land value of $1M, NSW LT threshold is $380K)

Wouldn't be planning any significant maintenance in the first couple of years, but if it happens it happens.

Total: $18000
Total after tax deduction: $10800

I'd be claiming that or more back in plant and building depreciation anyway, so it all balances out. No big deal.

Cheers,

Shadow.

gees Shadow.... you are a generous individual! wish I could rent a house from you, you would probably agree to cut my rent in half too as that is another tax deduction. I am selling my PPOR soon, toying with the idea of renting for a while. Would be nice for someone else to cover my expenses for a while whilst they focus on the big picture.

 

[Shadow]

gees Shadow.... you are a generous individual! wish I could rent a house from you, you would probably agree to cut my rent in half too as that is another tax deduction. I am selling my PPOR soon, toying with the idea of renting for a while. Would be nice for someone else to cover my expenses for a while whilst they focus on the big picture.

Haha! Hope it's not in Perth... if it's in Sydney I'll consider it.

 

[BayView]

I'm a uber-bull on property, but I've been around the block a few times (age wise), so I say stabilisation because I can keep a level head in all this stuff these days and not get carried away by the news.

Keep the emotions in check.

The D&Gers say slump.
The dreamers say boom.
The hopefuls say upturn.

I tend to lean towards a hopeful of course!!

 

[Gee Cee]

I at present tend to go towards dropping my debt. Paying extra $$$. On LOW % rates
Watching ALL markets. World ? Aus/Cities/ Siburbs/Streets.
Looking at ALL the people moving towards unemployment
Boom / Bust CYCLES.
Sitting on the fence then buying in layer.

May be good May Not

Ten Yrs will tell


Gee Cee
Old fart

 

[Propertunity]

Looking at ALL the people moving towards unemployment

Its not ALL - probably only 10% at worst of the workforce....which is itself only a % of the whole population.

Sitting on the fence then buying in later

Don't get splinters in your butt then which is what too much fence sitting leads to.

Another Old fart

 

[Gee Cee]

It might be only 10% getting retrenched.
BUT 70% + of people will react to this in a negative way. = CROWD
If so many people are negative I cannot see a massive thrust towards property. ( More like survival at home.)
Which moves on Supply and Demand.
Maybe I am just stupid but i cannot see any massive rises whilst everyone is gloomy.
I do not want to be Labelled as a doom & gloomer but hey/ It is a cycle.
I have posted a lot of positive stuff here over the years previously though


"(History never repeats I tell myself before i go to sleep")

OK in 20 yrs time you could say "You bought in 2009 at a bargain"
But you may be holding till 2016 till there is a capital gain.

And I may be sitting on the fence / beach/ .
But I will be pulling the splinters out and shaking the sand off when the Crystal Ball fires up AGAIN.
It did it in 1978 . 1988 then 2000.

No one can predict these dark waters
Time to check the batteries


Gee Cee

 

[BayView]

BUT 70% + of people will react to this in a negative way. = CROWD

I prefer the word PENGUIN, or SHEEPLE myself.

It has that juicy condescending connotation to it.

Either way; they are people to avoid being like.

 

[csc]

Its not ALL - probably only 10% at worst of the workforce....which is itself only a % of the whole population.

i think your totally missing the real point actually...sure if unemployment goes to 10% that leaves 90% employed, thats a simple observation...the thing is, if unemployment went to 10% the flow on effect into many other sectors or industries both wholesale and retail will be affected greatly... i think thats the key in my opinion and it is why the govt is keeping a very close eye on this issue...the consequences for housing in many areas will definitely see prices slide considerably ie: 10-20% as a minimum...

the only think keeping turnover going right now is this govt bonus which im quite sure is going to bite many who have purchased recently when rates start heading back up if they are on variable rates or fixed for say 3 years or so....

good luck