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The Power of Property, securing your future through real estate
nipper
post Posted: Apr 18 2020, 03:46 PM
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QUOTE
Most landlords are already losing money on their investment, which may explain the hesitance to cut rents for struggling tenants, experts say. Landlords who own a negatively geared property – where the rental income is not enough to cover the associated costs of owning the property, such as home loan repayments – have to personally make up the shortfall.

At tax time, the amount that landlord has lost is deducted from their income tax bill, often delivering them a windfall by way of tax return.

Since the shutdown of non-essential industries and the restriction of movement due to the coronavirus outbreak, a potential rental crisis has emerged.

Renters, more likely to be on lower incomes and employed in the industries first hit by the shutdowns such as hospitality, the arts and tourism, became concerned about how they’d pay rent, and landlords became concerned about how they’d manage repayments, interest and insurance without rents coming in.

Australian Tax Office data from 2016-17 shows 58 per cent of investment properties are negatively geared.
OK, we know that. But isn't there a lot of pain everywhere?
QUOTE
But experts argue landlords who negatively gear are usually richer and are in a better position to take the financial hit.

Because these arrangements could usually be intentional, these landlords should be prepared to take a hit on their rental income, Domain economist Trent Wiltshire said.

“People that negatively gear properties are not using the rental income as an income support as such,” he said. “Mostly these people have deliberately set up their arrangements so they can reduce the amount of income tax paid. Landlords who negatively gear are typically high-income earners; they probably have higher savings so they should be able to deal with the rent reduction, but that’s on average, not everyone’s like that.”
https://www-domain-com-au.cdn.ampproject.or...nants-948993%2F



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: early birds  
 
nipper
post Posted: Apr 6 2020, 06:28 PM
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In Reply To: joules mm1's post @ Apr 6 2020, 06:20 PM

Anything geared gets hit more. REITs carry debt, and the higher the LVR the better the returns ... until they aren't.

Another yield trap. Saw it in GFC and not surprised it's happened. Again..



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne

Said 'Thanks' for this post: mullokintyre  
 
joules mm1
post Posted: Apr 6 2020, 06:20 PM
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interestingly, speaking of which, from the US
#REIT
Tracy Alloway‏ @tracyalloway
https://twitter.com/tracyalloway/status/1246949203357532160
The recent sell-off in REITS was worse than even October/November 2008.
Via Morgan Stanley:



Attached File  REIT_sell_off_worse_than_2008.png ( 88.36K ) Number of downloads: 3




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. . . . . . . . everything has an art.....in the instance of the auction process, the only thing, needed to be listened to; price
 
nipper
post Posted: Apr 6 2020, 06:17 PM
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In Reply To: joules mm1's post @ Apr 6 2020, 05:41 PM

I was reading about Airbnb. A couple of anecdotes.
- mate in Tassie says Hobart (pop. 240,000) real estate has U turned; the hot mainland money looking for yield has lost both the overseas students and the tourist/ backpacker influx.
- a family member, sth coast beach side, getting 25% of all cancelled booking until 30 Apr.
- saw a blog on Canada; was getting $120 a night, going rate now about $30



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 
joules mm1
post Posted: Apr 6 2020, 05:41 PM
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if you've been saving a deposit you maybe in luck as some prices fall your way
https://www.domain.com.au/news/nsw-governme...s-fines-946902/

NSW government cracks down on holidaymakers, threatens fines
Sue Williams Apr 6, 2020




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. . . . . . . . everything has an art.....in the instance of the auction process, the only thing, needed to be listened to; price
 
nipper
post Posted: Aug 19 2019, 03:28 PM
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Six Warning Signs for a Property Spruiker
QUOTE
.... there were enough warning bells ringing for even these inexperienced investors to hear, and here are six things to look for:

1. The approach came from the spruiker. It always does. It offers a ‘free’ seminar showing how to become a millionaire, entry in a contest to win something flashy, or an interview to learn how to save tax while paying off your home faster.

2. The spruiker tries to convince you that they are the only people who can find the right property for you. Any seasoned property investor knows the way to wealth is to search out bargains for yourself.

3. A building contract is involved, with the rationale that you will save stamp duty, get a new home, and enjoy bigger tax breaks. The real reason? It gives the spruiker a better chance to load the price.

4. They offer a one-stop shop: the lawyer, mortgage broker, builder and managing agent. This allows them to stay in control throughout the process.

5. The properties are usually in outlying suburbs in lower socioeconomic areas. And it is no accident that properties offered are usually in a different state to where you live.

6. There will invariably be a mortgage required over your own home. The last thing the spruiker wants is for you to order a valuation on the overpriced property they are trying to force on you.

https://www.firstlinks.com.au/article/six-w...a7ff15-83781601



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"Every long-term security is nothing more than a claim on some expected future stream of cash that will be delivered into the hands of investors over time. For a given stream of expected future cash payments, the higher the price investors pay today for that stream of cash, the lower the long-term return they will achieve on their investment over time." - Dr John Hussman

"If I had even the slightest grasp upon my own faculties, I would not make essays, I would make decisions." ― Michel de Montaigne
 

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wren
post Posted: Mar 21 2013, 07:41 PM
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Every now and again we hear that Sydney is the city where anyone with the cash has to live.Not really:the big end of town prefer London,New York and Paris.

News just in........................."Nearly a year and a half after it hit the market for a whopping $160 million, London's One Cornwall Terrace has sold to British property tycoon Marcus Cooper, according to The Sun.

He reportedly paid $120 million for the home, significantly less than its asking price. Even with the discount, it's a record price for a terraced home, The Sun reports.

The 21,500-square-foot mansion, near Regent's Park, is named after King George IV, who was originally the Duke Of Cornwall. It has seven bedrooms, nine bathrooms, and 11 reception rooms.

It was the official London residence of the New Zealand High Commissioner from 1955 until the 1970s, and was later occupied by squatters, according to The Sun.

But it later went a full restoration, and now includes a sports complex with an indoor swimming pool, iPad-controlled lighting, and a 40-meter landscaped garden.

Cooper, founder of Marcus Cooper Group, is a property developer in London whose portfolio includes residential and commercial properties throughout the city."


 
colaiscute
post Posted: Feb 15 2007, 03:09 PM
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wow.. just finished my copy of Power of Property then.... and it really showed how little I knew about property before I picked up the book. Boy am I glad I did.

I have no intention of using property in my short term investments (maybe managed funds, but not ownership) and reading this book really gave a bit of a heads up into some of the complications.

Dont get me wrong, I loved the book (really easy to read and full of useful exposure to terms and strategies).


From an investment point of view, it covers financing well (in my opinion) and talks frankly about risk and not getting ahead of yourself.

I would say a pretty balanced book, but obviously written by real estate enthusiasts.


Anyone read it recently?



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colaiscute
 
rubba81
post Posted: Nov 22 2006, 12:36 PM
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In reply to: Matt Kirk on Wednesday 22/11/06 09:36am

Thats exactly right Matt Kirk!

Find an investment that "FITS" your personality profile cool.gif

 
dory
post Posted: Nov 22 2006, 11:59 AM
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In reply to: Danville on Wednesday 22/11/06 11:52am

HI Danville

yes pbd - i live next door in falcon {the peppie grove of the south }

cheers







 
 


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