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  1. #191
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    Quote Originally Posted by monnie24 View Post
    I didn't want a better house.
    I think the point made is there is always something 'better' you can do or get. You are saying just save. But when you pay a vast majority of your income on rent there is nothing left *to* save. Many in this thread have bought their principal property before or on the cusp of the price explosion. You say it's now worth 100k more. That's another 10k+ that a family need to save to buy that place.

    We are now considered the top of low income/bottom of middle income and are very frugal. We live in the country where prices are much lower. But even out here we'll need 25k+ deposit for anything half decent.

    It's way more complex than 'just save'. Of course some people renting blow their money, have poor financial skills and buy expensive prams then cry poor. You can't get a deposit living that way. But lots of us don't live like that and do have some savings but not enough.

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  3. #192
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    Quote Originally Posted by monnie24 View Post
    But we still bought a house 😜 I wouldn't live in Sydney flat out. If I had skills I would still move because it's ridiculously over priced.
    Sydney still needs nurses, teachers, retail workers, cleaners etc. They all should be able to have a decent place to live.

  4. #193
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    Quote Originally Posted by BigRedV View Post
    I didn't say that all renters would be able to afford to buy, I just simply said that if there were more houses on the market because investors were selling there would be an increase in supply and if investors weren't buying then there would be less demand.
    In what alternative reality do you think investors wouldn't buy? If prices go down who do you think will be the first to jump on that bandwagon?

    Also, this is a fact - investors don't buy $1m houses. Unless they are stupid. It makes no sense from an investment point of view. I've seen multimillion dollar houses for rent in my area (about 3 properties - I assume it's desperate people who have moved out of their homes and need to rent) for $1000 a week. You don't need a degree in finance to know that $1000 a week on a $2m property is a bad return on investment. Investors typically buy apartments and rent them out for around 5% return. Anything less than this is a bad investment.

    If houses are too expensive in Sydney it's because there are just not enough available, and you can't just blame investors for that. When people buy a family home it's usually going to stay in their family for decades, which investors sell more frequently and they typically sell cheaper properties.

    The reason prices are so high in Sydney is because everyone wants to live in Sydney. Can you blame them? Blacktown used to be an unattractive place to live, a last resort for middle income earners.. But demographics change, infrastructure improves, areas become more cosmopolitan and prices go up.
    The same will happen in areas which are now deemed "bad" to live in.

    Maybe the government needs to spend more money on improving the infrastructure of communities outside of the Sydney metropolitan area to make housing within a reasonable commuting distance more attractive?

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  6. #194
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    Quote Originally Posted by witherwings View Post
    In what alternative reality do you think investors wouldn't buy? If prices go down who do you think will be the first to jump on that bandwagon?

    Also, this is a fact - investors don't buy $1m houses. Unless they are stupid. It makes no sense from an investment point of view. I've seen multimillion dollar houses for rent in my area (about 3 properties - I assume it's desperate people who have moved out of their homes and need to rent) for $1000 a week. You don't need a degree in finance to know that $1000 a week on a $2m property is a bad return on investment. Investors typically buy apartments and rent them out for around 5% return. Anything less than this is a bad investment.

    If houses are too expensive in Sydney it's because there are just not enough available, and you can't just blame investors for that. When people buy a family home it's usually going to stay in their family for decades, which investors sell more frequently and they typically sell cheaper properties.

    The reason prices are so high in Sydney is because everyone wants to live in Sydney. Can you blame them? Blacktown used to be an unattractive place to live, a last resort for middle income earners.. But demographics change, infrastructure improves, areas become more cosmopolitan and prices go up.
    The same will happen in areas which are now deemed "bad" to live in.

    Maybe the government needs to spend more money on improving the infrastructure of communities outside of the Sydney metropolitan area to make housing within a reasonable commuting distance more attractive?
    Sydney hasn't had 5% rental returns in decades - I think it's around 3% now - our area is at around 2.3% ($1.4 average sale price - $650 average rental ) so yes the only reason some investors can afford to invest is because of negative gearing - but your right I think last year we had only 1 investor buy something over $1 million as the average family ( even with tax breaks) can't afford to invest when you add in expenses versus rental income

  7. #195
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    Quote Originally Posted by BigRedV View Post
    I've not once said I am against negative gearing, but I do think it should be capped at 2 or 3 properties. It's not fair that if you own enough investment properties that your income tax can be reduced to $0!
    Definitely unfair! Or rather, as I said in another topic, a tax system that allows this to be legal is ethically wrong.

  8. #196
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    Quote Originally Posted by Elijahs Mum View Post
    Sydney hasn't had 5% rental returns in decades - I think it's around 3% now - our area is at around 2.3% ($1.4 average sale price - $650 average rental ) so yes the only reason some investors can afford to invest is because of negative gearing - but your right I think last year we had only 1 investor buy something over $1 million as the average family ( even with tax breaks) can't afford to invest when you add in expenses versus rental income
    I guess some parts of Sydney have a higher rate of return than others. As an investor, I just wouldn't invest somewhere that had low rates of return. Clearly some people get into the investment property game without actually knowing anything about investing, and definitely not doing their research... This isn't surprising and it happens across lots of asset classes.

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    Default Negative Gearing - Politics talk

    Quote Originally Posted by BigRedV View Post
    I've not once said I am against negative gearing, but I do think it should be capped at 2 or 3 properties. It's not fair that if you own enough investment properties that your income tax can be reduced to $0!
    But how many people actually do that? Aside from deprecation claims, it would mean that their actual income is less than $18K. So what money do they live off? $18K is nothing!!

  10. #198
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    Quote Originally Posted by babyno1onboard View Post
    But how many people actually do that? Aside from deprecation claims, it would mean that their actual income is less than $18K. So what money do they live off? $18K is nothing!!
    They would still have income. And lots of it.

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    Quote Originally Posted by BigRedV View Post
    They would still have income. And lots of it.
    That not possible unless they are committing fraud. Taxable income = income - work/business rates expenses. Taxable income is basically what you have left over to 'live off'. To pay zero income tax then this amount needs to be less than $18K.

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    Quote Originally Posted by babyno1onboard View Post
    That not possible unless they are committing fraud. Taxable income = income - work/business rates expenses. Taxable income is basically what you have left over to 'live off'. To pay zero income tax then this amount needs to be less than $18K.
    They would reduce the amount of tax they pay to $0 I should've said. Perfectly legal but totally unfair.


 

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