Miner BHP Billiton cuts 2,100 WA jobs!
#61
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I am with Hevs on this one. You need some equity in your own house to persuade the banks to give you a mortgage on an investment property but not necessarily money in the bank. You also need to be able to afford a (probable) small net cash outflow if the mortgage you pay exceeds the rentals you earn. You also need a bit of cash to be able to cope with the peaks and troughs of cashflow as you renovate / receive tax breaks.
I do not follow the logic of how investment properties stop others buying their own house, other than there has been a couple of years where this once in a lifetime boom drove prices up. What it does mean is those that cannot afford to buy can live in a regular house in a regular street without having to fall back on the state for a roof over their heads.
I do not follow the logic of how investment properties stop others buying their own house, other than there has been a couple of years where this once in a lifetime boom drove prices up. What it does mean is those that cannot afford to buy can live in a regular house in a regular street without having to fall back on the state for a roof over their heads.
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#62
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Erm...no. It started when US banks got greedy and loaned to Americans who could not afford their mortgage repayments.
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But stand back a bit and forget the last couple of years which have been an aberration. Those tax breaks meant that individuals like Hevs took the risk and funded the provision of housing stock for the nation. If it had not been for that the goverments would have had to raise taxes to pay for the construction. And do you think governments would have constructed 4x2's in the middle of privately owned streets like investees or would they have built concrete slums and created sink estates like the UK?
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I learnt from a master! When my Dad died he left my poor Mum with large gambling debts, but a nearly owned home.
Mum set too and bought a crap shack property and did it up room by room. As she got each part of the house finished she'd rent a room and get some cash flow. She then sold the family home, paid off the debts and bought no 2 crap shack, then number 3. These all had endowments.
She sold them mid '89 and made a nice return (deservedly so) and bought a small house for us and invested the other money, oh and she also put enough money aside to cover the terms of the endowments.
She sat back a few years ago as they came in and now owns a house and car and hasn't worked for nearly 15 years.
If anyone says it was easy money or she was greedy I might just kill them
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I do not follow the logic of how investment properties stop others buying their own house, other than there has been a couple of years where this once in a lifetime boom drove prices up. What it does mean is those that cannot afford to buy can live in a regular house in a regular street without having to fall back on the state for a roof over their heads.
Surely more demand (and much of that demand was driven by greed - people seeing the returns on property in say 2004 and then piling in 2005 and 2006) means higher prices.
Higher prices mean that what I believe to be every family's right - the right to own your own house - cannot occur.
And I don't think that saying, "Well you can rent my house" justfies the exclsuion that these people must feel.
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But stand back a bit and forget the last couple of years which have been an aberration. Those tax breaks meant that individuals like Hevs took the risk and funded the provision of housing stock for the nation. If it had not been for that the goverments would have had to raise taxes to pay for the construction. And do you think governments would have constructed 4x2's in the middle of privately owned streets like investees or would they have built concrete slums and created sink estates like the UK?
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Do you mean mining companies paying their staff high salaries so that they can go out and buy multiple properties in an attempt to cash-in on rising prices, thereby causing prices to inflate even more and stopping non-mining families from getting on the ladder?
Or even worse, forcing families on normal salaries to go beyond their ability to pay the price (but allowed to take mortages due to no-doc/low-doc loans) and set them up for negative equity and re-posession?
Hang on - isn't that happening now?
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So they get paid high salaries so they can buy investment properties?
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What did they exactly spend their money on - houses! Sorry but this whole mess was caused by people thinking property only goes up and must have one whatever the cost - the banks in the US, UK, AU etc were lending money out to anybody who wanted a house, theres plenty of stories of minimum wage minority workers in the us going out and buying $1m+ of investment property with an income of $25k etc lying on their applications. The whole western world went off on a crazy housing and debt binge with has ultimately led to the bankruptcy of many banks and countries, soon to be Britain if they're not careful, and the ultimate collapse of the mining boom due to lack of demand for Chinese goods from US and Europe and then China for raw materials. It all started somewhere and that was housing speculation in one form or another.
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Mining.
Do you mean mining companies paying their staff high salaries which enable them to go out and buy multiple properties in an attempt to cash-in on rising prices, thereby causing prices to inflate even more and stopping non-mining families from getting on the ladder?
Or even worse, forcing families on normal salaries to go beyond their ability to pay the price (but allowed to take mortages due to no-doc/low-doc loans) and set them up for negative equity and re-posession?
Hang on - isn't that happening now?
Do you mean mining companies paying their staff high salaries which enable them to go out and buy multiple properties in an attempt to cash-in on rising prices, thereby causing prices to inflate even more and stopping non-mining families from getting on the ladder?
Or even worse, forcing families on normal salaries to go beyond their ability to pay the price (but allowed to take mortages due to no-doc/low-doc loans) and set them up for negative equity and re-posession?
Hang on - isn't that happening now?
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