Depends on where you plan to invest. For example I have a friend who bought property in Thailand https://tranio.com/thailand/ just because it is much cheaper there and started to rent it out on popular websites like booking and so on. From renting it for several days or weeks he gets much more money in compare if he is renting it for long term. Good thing about Thailand is that tourists go there all years around even when it is a winter season if I may call it like this. Did you think about this country?
Investment property
- Thread starter cleveland
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You should maximise your interest deductions which means offsetting the owner occupied property first. If you dont have a OO and only investment property then having the money in the offset account saves you interest, yes you can deduct less but you also arent paying tax on interest income on that cash which sits in a bank account at a crap cash rate.
Also, if you have an existing loan you cannot refinance to shift equity between OO and investment property loans (to maximise interest deductions). My accountant said this taints the loan and not allowed by the ATO. I didn't probe further so I'm not 100% on it.
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I was thinking of the U.S if it crashes again. It's insane how low the prices go and then climb. I may be shifting my focus. I live in QLD with my original OO in Victoria however now have a planned return to Victoria. Lifestyle is amazing in QLD, but my career opportunities are in Victoria. Only 28 year, so have a while to go
Yeah I ended up taking my money out from the home loan and putting it into an offset account. I did speak to a bank about this, and the plan was to use the equity in the investment property to buy a house to live in. This would raise my investment loan allowing me to negative gear to my benefit. Thinking of options, even considering buying a business and growing that instead and move back into the investment property
Why do we have such an obsession with the property market increasing?
I don’t see how it benefits most people for the principal place to increase in value, obviously it provides equity but how many use it?
All I see happening is that property is going to get out of reach for young people.
I say this having an interest in investment and development through property or beginning to atleast. Property prices increasing helps this process but I don’t see how there is a long term benefit for the majority.
Anyone else have thoughts on this topic?
I feel that the correction in the market is a good thing, obviously not great for the few who bought at the peak, but that is only a risk if you don’t plan to hold it for a while.
I don’t see how it benefits most people for the principal place to increase in value, obviously it provides equity but how many use it?
All I see happening is that property is going to get out of reach for young people.
I say this having an interest in investment and development through property or beginning to atleast. Property prices increasing helps this process but I don’t see how there is a long term benefit for the majority.
Anyone else have thoughts on this topic?
I feel that the correction in the market is a good thing, obviously not great for the few who bought at the peak, but that is only a risk if you don’t plan to hold it for a while.
I hope the whole thing crashes and I will have zero empathy for those who borrowed at the absolute max of their capacity for their one house and even schadenfreude for those who get stuffed with multiple properties
The appetite for property at the peak of the market was astonishing, seemingly only stalled by the royal commission.
And when it doesn't crash and my investment grade properties continue to grow long term ill be financially free while you continue working because you have to =)
I think a medium of affordability and gradual growth is ideal. Surely you are still set up after someone pays off your investment over 30 years anyway.
Its a national sport. People are asset rich but cashflow poor.
Good for the economy.
The more money people think they have, the more money they spend, thus creating jobs for all.
Not really a bad thing though Sydney 2014 to 2017 probably went a little too far
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It's just feeding the perpetual growth cycle. The more money people think they have, the more they borrow.
Not everyone who's house goes up in value knows or is even able to leverage that equity. They do know that's it gone up, they feel richer and spend more though.
would you prefer people to think they’re losing $1,000’s and not be spending $1 more than they need to?
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I would prefer people recognised that money in and money out are the drivers of their budget and lifestyle and that the value of your house has zero material effect on your day to day life.
Houses are worth much more relative to income than they were 10, 20, 30 years ago. Society isn't richer for it.
Houses are worth much more relative to income than they were 10, 20, 30 years ago. Society isn't richer for it.
I would think it’s effect is as a security, maybe we are happier spending money knowing we have capital over and above from our home. I don’t like property growth especially when it is so far above wage growth but it gives peopl the confidence to spend which in turn drives other parts of the economy.
The whole thing doesn’t seem very sustainable, atleast I hope not.
Why?
I don’t know about in Australia, but in terms of Victoria it should do well, along with Ballarat and Bendigo which are even more affordable. A fast rail to any of these destinations which is predicted would cause prices to rise nicely you would think.
Median house price of about 500K and strong population growth predicted over next couple decades, as I mentioned in post above a fast rail which was promised in last election budget would be a kicker.
Also it’s changing into a government job centre also big university town. And undervalued for mine.
The population in Melbourne is growing at the fastest rate and Geelong only 55 minutes drive away. Plenty of Melbourne people who can’t quiet invest in Melbourne invest in Geelong instead. Good rental yields. Especially with uni students. World famous Great Ocean Road and beaches only 20 minutes away and Bellarine Wine region. I see why I’d invest big in this district. And if that speed train comes in that’s next level.
I understand the sentiment. I'd like nothing more than to see the boomer generation wiped the **** out. The problem is a housing crash wouldn't just affect property owners. It would have massive ramifications for our entire economy.
I think you're missing the point though. Geelong has potential. I agree. This does not yet mean it has the same qualities as established suburbs that would be deemed safer.
Potential =/= safe. What it is, is 'higher' risk for higher reward.
What risk? And where is a “safe” place to invest?
Edit- why would an established capital suburb be safer?
And in what way do you mean safer?
