+ Reply to Thread
Page 5 of 17 FirstFirst ... 3456715 ... LastLast
Results 41 to 50 of 164
  1. #41
    Join Date
    May 2009
    Posts
    4,786
    Thanks
    1,020
    Thanked
    2,246
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Quote Originally Posted by BigRedV View Post
    Well if you can't afford a house in Sydney or Melbourne but still want to live there, you can always just buy a cheap property elsewhere, like Brisbane or Adelaide or Hobart, negatively gear it and then push the house prices up for the people wanting to buy there
    That's not a joke, that's pretty much the best thing you could do.

  2. #42
    Join Date
    Aug 2009
    Location
    Sydney
    Posts
    2,086
    Thanks
    1,285
    Thanked
    1,179
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Quote Originally Posted by Elijahs Mum View Post
    The reasons it's inflated is because of low interest rates and demand , our population is increasing but houses in most suburbs are not - thus creating a huge demand - the government can't stop it so it needs to focus on better transport , releasing new land and employment opportunities to the outer suburbs so first home buyers and young families can find affordable housing or like a lot of my buyers do who need /want to stay in the area buy units or smaller properties they can afford now
    This! So well put! 👏🏼

  3. #43
    Join Date
    Oct 2007
    Posts
    22,838
    Thanks
    6,199
    Thanked
    16,883
    Reviews
    10
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 postsRuby Star - 15,000 postsDiamond Star - 20,000 posts
    Awards:
    Bubhub Blogger - Thanks100 Posts in a week
    Is there really a lack of housing in capital cities though? Genuine question, I live rurally

  4. #44
    Join Date
    Feb 2015
    Posts
    2,040
    Thanks
    2,294
    Thanked
    1,387
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    One thing that I don't quite understand is why some people think negative gearing is a good thing for your personal finances... Yay let's intentionally lose $1,000 a month so I pay $350 less tax!!! Of course that's great if your property is going up in value by more than $650 a month (plus whatever the agents fees will be to sell it and whatever you paid in stamp duty when purchasing the property - which can be a lot) but outside of Sydney and Melbourne that's just not happening. When the market in Sydney and Melbourne slows down and the younger investors start settling down and having children, watch them drop these houses fast when they are on a single income and need that $650 a month to pay for nappies.

  5. #45
    Join Date
    Oct 2007
    Posts
    22,838
    Thanks
    6,199
    Thanked
    16,883
    Reviews
    10
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 postsRuby Star - 15,000 postsDiamond Star - 20,000 posts
    Awards:
    Bubhub Blogger - Thanks100 Posts in a week
    So an example:

    A LL's mortgage is $2000 a month. He has a tenant in there paying $1500. He's making a loss of $500 a month. He neg gears and gets back say $150-200. He's still making a loss on paper of 300 a month right?

    But his 2 grand mortgage is being paid for essentially 300 a month with some possible expenses for the tenant.

    That's a pretty sweet deal....

  6. The Following User Says Thank You to delirium For This Useful Post:

    Wise Enough  (11-05-2016)

  7. #46
    Join Date
    Jul 2015
    Posts
    6,862
    Thanks
    4,773
    Thanked
    4,210
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Awards:
    100 Posts in a week
    Quote Originally Posted by Tinkers View Post
    There had also been a lot of overseas investors buying property in Sydney and Melbourne.
    I have more of an issue with this than negative gearing and cgt discounting!

  8. The Following 2 Users Say Thank You to turquoisecoast For This Useful Post:

    Tinkers  (10-05-2016),VicPark  (10-05-2016)

  9. #47
    Join Date
    Jul 2015
    Posts
    6,862
    Thanks
    4,773
    Thanked
    4,210
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 posts
    Awards:
    100 Posts in a week
    Quote Originally Posted by delirium View Post
    So an example:

    A LL's mortgage is $2000 a month. He has a tenant in there paying $1500. He's making a loss of $500 a month. He neg gears and gets back say $150-200. He's still making a loss on paper of 300 a month right?

    But his 2 grand mortgage is being paid for essentially 300 a month with some possible expenses for the tenant.

    That's a pretty sweet deal....
    it's not that full mortgage payment that creates the rental loss, it's the interest expense only that is able to be claimed as a rental deduction. so unless they're paying an interest only loan, the full $2k is not contributing to the loss.

    that's an important distinction here, I hope everyone reading along gets that too?

  10. The Following 3 Users Say Thank You to turquoisecoast For This Useful Post:

    babyno1onboard  (10-05-2016),Elijahs Mum  (10-05-2016),Rose&Aurelia&Hannah  (10-05-2016)

  11. #48
    Join Date
    Feb 2015
    Posts
    2,040
    Thanks
    2,294
    Thanked
    1,387
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Quote Originally Posted by delirium View Post
    So an example:

    A LL's mortgage is $2000 a month. He has a tenant in there paying $1500. He's making a loss of $500 a month. He neg gears and gets back say $150-200. He's still making a loss on paper of 300 a month right?

    But his 2 grand mortgage is being paid for essentially 300 a month with some possible expenses for the tenant.

    That's a pretty sweet deal....
    But only if the house is going up in value, and enough to cover the cost of stamp duty and agent selling fees. If that's not happening then it's a waste of $300 a month.

  12. The Following User Says Thank You to babyno1onboard For This Useful Post:

    Rose&Aurelia&Hannah  (10-05-2016)

  13. #49
    Join Date
    May 2009
    Posts
    4,786
    Thanks
    1,020
    Thanked
    2,246
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Quote Originally Posted by delirium View Post
    So an example:

    A LL's mortgage is $2000 a month. He has a tenant in there paying $1500. He's making a loss of $500 a month. He neg gears and gets back say $150-200. He's still making a loss on paper of 300 a month right?

    But his 2 grand mortgage is being paid for essentially 300 a month with some possible expenses for the tenant.

    That's a pretty sweet deal....
    Yea that's the whole point the tenant pays your mortgage. You still make a loss even after negative gearing. So you need to be in a position to manage that. You also need a deposit and stamp duty, agent fees and insurance. And you have to make sure you have money to cover repayments if the property is not tenanted for a period of time.

  14. The Following User Says Thank You to Janesmum123 For This Useful Post:

    Rose&Aurelia&Hannah  (10-05-2016)

  15. #50
    Join Date
    Oct 2007
    Posts
    22,838
    Thanks
    6,199
    Thanked
    16,883
    Reviews
    10
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 postsRuby Star - 15,000 postsDiamond Star - 20,000 posts
    Awards:
    Bubhub Blogger - Thanks100 Posts in a week
    Quote Originally Posted by turquoisecoast View Post
    it's not that full mortgage payment that creates the rental loss, it's the interest expense only that is able to be claimed as a rental deduction. so unless they're paying an interest only loan, the full $2k is not contributing to the loss.

    that's an important distinction here, I hope everyone reading along gets that too?
    Good point, but especially in the early stages of the loan, a big chunk is deductable unless they had a huge deposit or are paying big repayments. Which of course they don't to get the loss.

    Ultimately renting out and NG is a sweet deal, or people wouldn't do it. Why rent out your house if you aren't getting significant gains?


 

Similar Threads

  1. Negative Gearing - Politics talk
    By A-Squared in forum General Chat
    Replies: 271
    Last Post: 30-04-2016, 00:13
  2. Change to Negative Gearing tax breaks
    By ExcuseMyFrench in forum News & Current Affairs
    Replies: 13
    Last Post: 17-02-2016, 10:56
  3. Housing - what would you do?
    By Little Ted in forum General Parenting Tips, Advice & Chat
    Replies: 43
    Last Post: 31-07-2015, 14:22

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
free weekly newsletters | sign up now!
who are these people who write great posts? meet our hubbub authors!
Learn how you can contribute to the hubbub!

reviews
learn how you can become a reviewer!

competitions

forum - chatting now
christmas gift guidesee all Red Stocking
Tambo Teddies
Visit our online store and select your individually handmade natural sheepskin teddy bear. Our soft and loveable bears come in a range of styles and colours. Created in Outback Queensland each bear is unique individual. 100% Australian made!
sales & new stuffsee all
Wendys Music School Melbourne
Wondering about Music Lessons? FREE 30 minute ASSESSMENT. Find out if your child is ready! Piano from age 3 years & Guitar, Singing, Drums, Violin from age 5. Lessons available for all ages. 35+ years experience. Structured program.
Use referral 'bubhub' when booking
featured supporter
Hunter Women's Health Centre
Hunter Women’s Health Centre care for women of all ages, in the full spectrum of their gynaecologic and obstetric health.
gotcha
X

Pregnant for the first-time?

Not sure where to start? We can help!

Our Insider Programs for pregnancy first-timers will lead you step-by-step through the 14 Pregnancy Must Dos!