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  1. #81
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    Quote Originally Posted by Janesmum123 View Post
    I'm going to be blunt here. You don't like investors because you see them pushing up house prices and you can't buy. What you need to do is make a plan to buy. This may entail doing things like increasing your income buy going back to work or buying with a smaller deposit and paying mortgage insurance or buying a smaller home/villa etc. Speak to a broker and see what your options are. Plenty of banks will lend with less then 20% on a good credit rating.
    I get that you are upset and frustrated but instead of blaming those horrible investors make a plan and put 2 years hard work into making it happen. Get work night shift, work at a supermarket, tag team with your husband child care. Get a cheaper rental or move in with family if possible. Do whatever it takes if you really want to buy.
    Or buy an investment property first in a cheap area and negative gear it. Come to the dark side
    I find this incredibly patronising. Isn't this the same bs that joe hockey got slated for? Saying people just need to get better jobs?!?
    "do whatever it takes"... Luckily I'm not in this predicament but with 3 kids needing care / oosh I personally would find it hard to break even if I worked. Tag team? My toddler doesn't go to sleep without me and that's 8.30/9pm. Of course I'd work weekends or find a way to do evenings if necessary but never just to scrimp and save for years for a deposit. And the reality for many families is they have been doing just this for years but house prices keep going up and up and there's only so much they can do. I know there's inequity in all realms of life but the housing one feels particularly cruel as it comes down to timing for many - locked out because they were born too late! That first step on the ladder is getting smaller and further out. It's not that they've been lazing in bed all morning and now at the back of the queue. Not sure that makes sense I just feel sad at this attitude towards property as a first in best dressed asset. It should just be a home. Sure we need some investors but NG is skewing things and besides the govt should be doing something (I don't know what) to prevent house ownership becoming exclusive to the old or rich. Life should be about more than saving for a deposit or paying the mortgage

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  3. #82
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    Quote Originally Posted by delirium View Post
    The reason rent is so ridiculous is bc housing prices are so high.
    The reason why prices are so high could be because supply isn't enough to meet demand?. (...Because building a home is not *that* financially attractive for investors)

  4. #83
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    Quote Originally Posted by Freyamum View Post
    I find this incredibly patronising. Isn't this the same bs that joe hockey got slated for? Saying people just need to get better jobs?!?
    "do whatever it takes"... Luckily I'm not in this predicament but with 3 kids needing care / oosh I personally would find it hard to break even if I worked. Tag team? My toddler doesn't go to sleep without me and that's 8.30/9pm. Of course I'd work weekends or find a way to do evenings if necessary but never just to scrimp and save for years for a deposit. And the reality for many families is they have been doing just this for years but house prices keep going up and up and there's only so much they can do.
    Yes it's hard. Very hard to save for a house when you have kids. That's why if someone had the time and life works out that way they would probably have more chance of buying a home if they studied/worked/saved before having kids.

    Yes - life gets in the way sometimes.

  5. #84
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    Quote Originally Posted by A-Squared View Post
    I have NEVER said I was, nor do I believe that I personally am doing a community service in doing so. But if you had no investors where would people rent? Legitimate question. It's a fact for every (most) investment property, there is a tenant, is there not? Yes if housing was more affordable then a chunk of renters would become home owners, but reducing the number of investors will just not do enough to create more affordable housing.

    I don't have a 'right' to negatively gear an investment property, I don't have a right to a CGD, I see myself as being lucky and that it is a priveledge that I am in the position I can own an investment property (which I actually don't at present). Trust me I count my blessings every single day!

    This is why I get so peeved at the attitude that all investors are super rich greedy bast*r#s who think they're doing a community service.

    It's a fact of the world, there are owner occupiers, investors and renters the world over, not just in Australia because of NG and the CGD.

    And if you've actually paid attention to anything I have said, I have said there needs to be caps on the amount of NG and CGD people are entitled to, not just to protect my own interests but because there are so many positive roll on effects o those things being in place.

    The investment property I once had, when you add up all of the NG tax I got back compared to the amount of tax I paid in capital gains and stamp duty, the government has actually MADE money off me. And it is often the case with many other investors.
    Will you buy another investment property in future?

    Would you still buy it if there was no negative gearing?

    The amount of tax revenue that has been lost because of negative gearing is over $13 billion for only one financial year.

    There are countries around the world that don't even allow negative gearing.

  6. #85
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    Quote Originally Posted by VicPark View Post
    Yes it's hard. Very hard to save for a house when you have kids. That's why if someone had the time and life works out that way they would probably have more chance of buying a home if they studied/worked/saved before having kids.

    Yes - life gets in the way sometimes.
    We bought before having kids too. It's definitely harder if only one of you is working. Harder to save, harder to cover expenses etc.

    For those who want to get into the market but can't afford a house, you could buy a small investment property that will pay for itself and use the growth in equity as a future deposit on your home. This is a good way to get into the property market and still get a house in the future. Once you're "in" the market, you immediately start benefiting from the capital growth, and that's a significant amount of savings, considering you get growth on the amount you borrowed, not just the amount you invested yourself.

    Eg you buy a $500k property, using $100k savings. Ignoring all other costs for now, let's assume your investment is $100k but the property grows by 10% each year, that's $50k growth per annum. You've just made $50k on a $100k investment. Bare in mind, you are getting rental income of around $380 a week, and it's only costing you around $340 a week on an interest only loan. It doesn't have to be a $500k property, it could be $300k or whatever, anywhere in Australia. Just something that will give you capital growth and cover your running costs. You don't need to kill yourself saving up for years and trying to catch up with the market, it's not going to work unless you come into money.

    Just some food for thought. This isn't an investment strategy that is only accessible to rich people. Anyone can do this.

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  8. #86
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    Quote Originally Posted by VicPark View Post
    Yes it's hard. Very hard to save for a house when you have kids. That's why if someone had the time and life works out that way they would probably have more chance of buying a home if they studied/worked/saved before having kids.

    Yes - life gets in the way sometimes.
    I don't think my kids will ever be able to afford to buy in Sydney. Even if they stay at home until they are 30.

    http://www.news.com.au/finance/real-...5ceb5a7d17af81

    http://m.thenewdaily.com.au/money/20...-home-deposit/

  9. #87
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    And just want to add that in 2005, Malcolm Turnbull described negative gearing as a "sheltering tax haven"

  10. #88
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    Quote Originally Posted by witherwings View Post
    We bought before having kids too. It's definitely harder if only one of you is working. Harder to save, harder to cover expenses etc.

    For those who want to get into the market but can't afford a house, you could buy a small investment property that will pay for itself and use the growth in equity as a future deposit on your home. This is a good way to get into the property market and still get a house in the future. Once you're "in" the market, you immediately start benefiting from the capital growth, and that's a significant amount of savings, considering you get growth on the amount you borrowed, not just the amount you invested yourself.

    Eg you buy a $500k property, using $100k savings. Ignoring all other costs for now, let's assume your investment is $100k but the property grows by 10% each year, that's $50k growth per annum. You've just made $50k on a $100k investment. Bare in mind, you are getting rental income of around $380 a week, and it's only costing you around $340 a week on an interest only loan. It doesn't have to be a $500k property, it could be $300k or whatever, anywhere in Australia. Just something that will give you capital growth and cover your running costs. You don't need to kill yourself saving up for years and trying to catch up with the market, it's not going to work unless you come into money.

    Just some food for thought. This isn't an investment strategy that is only accessible to rich people. Anyone can do this.
    Yes but what happens when interest rates go up and house prices flatten out? Suddenly they have to chip in $350 a week to top up the mortgage and the house isn't going up in value. It's not a fail safe way to make money and people can lose the savings they did manage to scrape together after years and years of saving.

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  12. #89
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    How about limiting NG to new property only? Wasn't the point of NG to help with supply?

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  14. #90
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    Quote Originally Posted by Elijahs Mum View Post
    Remember though they predicted the same thing in 2007 and it never happened, a slight down turn in prices but nothing severe and it bounced back in a year - I still think our population growth is pushing demand which is keeping prices high, also the one good thing about our banks compared to the rest of the world is they are quite tough with loan applications and deposits , a lot of banks have been requesting 20% deposits now for a few years and they are very tough with their valuations
    That's true.
    Salaries and wages aren't increasing just as fast as property value though.
    Well I guess the new entrants will have to purchase 20-30k out of the city and waste their life commuting


 

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