Kiwipaul

To become rich you have to take some chances and I agree you could loose the lost (unlikely). The best possible investment is to own your own your own house clear of a mortgage, because any capital gain is tax free and you can use your own effort to increase the CG without a tax hit when you sell.

If you rent you need to earn more money to pay the rent, because the rent money is taxed so it pushes you into a higher tax band. By owning your own house you need a lower income and so you can spend more enjoying yourself.

If you don't invest putting money into bank accounts, you just stand still with no potential of capital gain.

pommie bastard

Nice that its come down to 30% but still to high for gambling man.

renth

I look at it this way, I pay $270 a week for a lovely house with ocean views. What sort of a house would I be living in if I "owned" it and my mortgage was $270 a week, somewhere in Armadale probably.

With all these new rental propertys coming on the market I can hope to move into an even better house soon.

The Tooth Fairy

If you are a gambler then 50% win 50% lose - net result: no income, no tax.

pommie bastard

No cash means no funds to gamble not the result I need.

pommie bastard

The Saturday paper had over 10,000 rentals to choose from , as you say its a renters market plus the first home grant has ex-renters buying into the housing market .
Too few punters and too many homes means lower rents and unhappy investors.

dotty

Most people who bought in SEQld or Perth 18 months ago now have a stack of equity in their home. A lot of houses have doubled, Ozzies feel rich at the moment due to this hence the spending.

Lots of ads in newspapers from Banks to use the equity in your home to buy a rental property. Sunny Coast paper had pages of rentals on Saturday compared to a few columns a year ago. Basically people want a slice of the action property wise.

The scary bit is what banks will loan people here. I know people on one wage, wife at home with 2 kids, receiving huge welfare top ups but they have a loan on their own home and a second one too. Now that is scary, the guy works in a industry that could go down at any time.

Ozzies do borrow a lot of money tho, perhaps cause the wages are not so great its accepted that you borrow for it.

Doctor mate of ours has a $800,000 mortage. His wife lives in fear of a interest rate hike. Personally I'd prefer to sleep at night.

Kiwipaul

You cannot have it both ways yesterday you were telling us their was a shortage of houses in Perth.

So which is it shortage or glut.

Thats the problem with posting so many lies you lose track of what lies you've told.

pommie bastard

For sale there is a lack of homes as the post said not rentals, and you lack a brain that works your wide open mouth.
Young man the word lier fits you well wear it.

Kiwipaul

DER If their is a shortage of properties for sale it means prices will go up, so what will the owners of these empty rental properties do.

I think even your adled brain should be able to work that one out.

Well maybe not SELL EM and take the capital gain. Could be Pokies is about the limit of PB investment knowledge.

pommie bastard

You have a point but a flood of new homes onto the market drives it down , most rentals are in bad shape as renters care not about maintance so they are marked down on price.
Land sales are rocketing as is the building of new homes , any up turn in interest rates will hurt either market .
You are a simple goverment drone , the so called investers need renters to stop going broke any week without rent is a bad week.

Florida_03

God you two do drone on.

You've worn out me few neurons I've got left.

I need a BEX and a good lie down.

pommie bastard

2 you have 2 , I demand you share with us who require 1 .

paula m

I am pleased to get such debate going it is good to hear all sides. We may be taking a risk, but life is one and we think we know what we are doing and the worse that can happen is that we have to sell and pay capital gains. When I said it could never happen in the uk i mean to a nurse and a chef who have never inherited or won any money.
It is not easy and hard work but hopefully worth it all in the end if we can give our kids a great life and get the boat and spa we all would like.
paula

Kiwipaul

Sounds to me like your doing really well, good on yer, just don't over extend yourself cos interest rates will go up eventually. In my situation the ideal is when the rent covers the costs of the investment property.
The trick is to make money on the capital gain as that is taxed at half the rate of tax on rental or salary, and so you get rich quicker this way, without the tax man getting so much.