Society/Culture Australian Property Prices to Crash?

[Taylor]

Companies buying residential property is relatively only a new thing, AND it only really started as interest rates plummeted, as interest rates go up (especially the forecasted long term rates cycle we see now) wholesale purchases of residential property is less attractive as companies taking them out are all of a sudden paying massive amounts more of interest payments, as well as banks will see them as more high risk investments thus limiting lending.

Go watch below. Very interesting talk about what have said about BlackRock and other Financial Companies buying mass amounts of housing in the states.



if you wanted to park cash during inflation things like, OIL, gold etc are much better safe havens than property. only an idiot would park money in housing for inflation, unless they are willing and able to wait multiple years to get their money back.

They started investing when the world pushed out more money than ever before, by orders of magnitude, and shut down supply chains.

But I'm sure those trillions of dollars are managed by idiots, that's who society works after all - idiots are pushed to succeed while smart people complain that the system is unfair and don't listen when someone tells them the chiseled in granite truth about what is about to happen.

Gold and oil backed currency? No. Land backed. The wealthiest people in the world are buying up bulk land for a reason.

 

[Madas]

yes, of course i am part of the problem, and I'm certainly not bragging about it, i didn't even mention my situation before you brought it up this morning. But it is not my job to fix it, my job is to ensure my family has the best possible life within the laws of the country. All I can do is say i would support the removal of my tax benefits, i didn't say i am a beacon of morality. If you think me selling my property would change the system , than great ill sell mine tomorrow, but we both know this is a cheap line by you, an uneducated one at that.

You have a different opinion to me, whatever, that's great. But you are the one on here making personal attacks calling me a w***er and such. Why? because i believe high income earners like me should not be able to claim a tax benefit to buy additional housing?. Pull the other one mate. You are 100% jealous whether you claim it or not.

There are plenty of housing packages 1.5 hours commute each away from CBD's that's great. I don't believe this should be the only option for people to buy a house when the benefiters of tax investments are typically already wealthy people.

You don't like my stance, great. Lets discuss it rather than you acting like a *******.

Nah I agree with Frumpy
You gotta walk the talk mate
Think global act local

eg :
I hate plastic bags and litter , therefore don’t use them and pick up others .
I Don’t just walk around saying “ everyone else is doing it “

 

[Taylor]

I think the only issue with what HirdsTheWord is saying is that he is pulling the ladder up after he has climbed it, everyone should absolutely look after themselves and their own within the laws of the country. It's perfectly valid to identify a problem with an advantage you've enjoyed and suggest it should be changed to make it more fair.

 

[Madas]

I think the only issue with what HirdsTheWord is saying is that he is pulling the ladder up after he has climbed it, everyone should absolutely look after themselves and their own within the laws of the country. It's perfectly valid to identify a problem with an advantage you've enjoyed and suggest it should be changed to make it more fair.

Yeh na
If you strongly believe something is wrong it’s nonsensical to partake in that act as it just perpetuates the problem

Even if it doesn’t change the world you know you are doing the right thing by your own standards

 

[HirdsTheWord]

Yeh na
If you strongly believe something is wrong it’s nonsensical to partake in that act as it just perpetuates the problem

Even if it doesn’t change the world you know you are doing the right thing by your own standards

Yeh na
If you strongly believe something is wrong it’s nonsensical to partake in that act as it just perpetuates the problem

Even if it doesn’t change the world you know you are doing the right thing by your own standards

I am not financially illiterate. I will take whatever tax breaks I’m allowed too. Doesn’t mean I think they are right.

Would be more nonsensical to fall behind financially when others are not living by the same standards. It’s the governments job to do the right thing for the population, not mine. I’m just identifying the issue and saying I would support it.

 

[HirdsTheWord]

Nah I agree with Frumpy
You gotta walk the talk mate
Think global act local

eg :
I hate plastic bags and litter , therefore don’t use them and pick up others .
I Don’t just walk around saying “ everyone else is doing it “

Yeah but do you still use electricity,gas,petrol & other day to day products that also cause litter/damage in the environment?

Your analogy is not a good one.

 

[Madas]

Yeah but do you still use electricity,gas,petrol & other day to day products that also cause litter/damage in the environment?

Your analogy is not a good one.

No
They are needs not wants .

Investment property is a want which you have at great pains pointed out over the past 100 pages or so

 

[Taylor]

Yeh na
If you strongly believe something is wrong it’s nonsensical to partake in that act as it just perpetuates the problem

Even if it doesn’t change the world you know you are doing the right thing by your own standards

I would argue that if you're playing the game and seeking to have the rules of the game changed to make it fairer then it carries more weight than someone refusing to play the game because it's unfair and seeking to change the rules so they win without playing.

 

[HirdsTheWord]

No
They are needs not wants .

Investment property is a want which you have at great pains pointed out over the past 100 pages or so

Kinda seems like you doing something just because everyone else is doing it, go live off renewable energy, its there for you. Just way more expensive. Pot.Kettle.Black. that's exactly why I'm saying investment properties should not be allowed to be claimed as a tax deduction...i suppose you get it now?

it seems your main issue is just because i think myself getting a benefit its not the right thing, than i should be ghandi and give it up immediatley? Rather than say i would be supportive of policy changes to fix the issue. I'm literally saying I'm happy for it to be changed, but because i don't just give it up straight away I'm somehow wrong?

A very odd stance by you.

 

[Cuzz09]

Locking in last year at 1.99% fixed-rate until mid 2025 was money for jam.

WoW I thought my 2.29% til end of 23 was decent.

Good one

Ive deliberately increased my fortnightly payments, by a decent amount... not a crazy amount, over the last few months so by the time my fixed loan tuns out Im used to the amount Im gonna end up paying and also smash it down a bit.

On SM-G925I using BigFooty.com mobile app

 

[HPKS]

Like I said yesterday the cycle will continue in a few years and we’ll be back to where we started. But and it’s a big but imo it’s inevitable that around the end of this decade NG will be gone or very much diminished. It will go the same way as climate issues. The last ten years were denial from a lot of people then eventually the youth got older and voted for parties that were prepared to attempt to tackle the issue, Greens, Teal & ALP.

 

[Frank Grimes]

WoW I thought my 2.29% til end of 23 was decent.

Good one

Ive deliberately increased my fortnightly payments, by a decent amount... not a crazy amount, over the last few months so by the time my fixed loan tuns out Im used to the amount Im gonna end up paying and also smash it down a bit.

On SM-G925I using BigFooty.com mobile app

I'm going by vague memory and I may be wrong on details but about 15 odd years ago I looked at paying down one of my fixed loans but there is a limit on how much you can pay down during the fixed period. I think they said $20k is the most, but that may be dependent on the size of the loan.

 

[Cuzz09]

Fees are charged if you pay more than $10k in a year for mine.

Im not risk of breaking that. Just paying the amount it will be if it gets to say 4-5%

On SM-G925I using BigFooty.com mobile app

 

[FRUMPY]

Ive deliberately increased my fortnightly payments, by a decent amount... not a crazy amount, over the last few months so by the time my fixed loan tuns out Im used to the amount Im gonna end up paying and also smash it down a bit.

On SM-G925I using BigFooty.com mobile app

Everyone should have been putting more into their loan account with interest rates so low. Get an offset account and have a buffer for when times get tougher.

If they couldnt afford to put more in then there is sfa chance they can afford to pay the loan when rates get back up to the 4-5% range (if not higher) and they shouldnt have a loan

 

[FRUMPY]

I'm going by vague memory and I may be wrong on details but about 15 odd years ago I looked at paying down one of my fixed loans but there is a limit on how much you can pay down during the fixed period. I think they said $20k is the most, but that may be dependent on the size of the loan.

they'll always have fees for paying off loans or part there of in a lump sum - they're in the business of making money and are losing on interest for the agreed term of the loan if you pay off a lump sum or all of the loan

i dont know how much but it i presume it wouldnt be much compared to the interest you'd pay if you didnt pay off a lump sum etc

 

[HirdsTheWord]

I'm going by vague memory and I may be wrong on details but about 15 odd years ago I looked at paying down one of my fixed loans but there is a limit on how much you can pay down during the fixed period. I think they said $20k is the most, but that may be dependent on the size of the loan.

depends on your bank.

We are with ING and we paid an extra 60k last year on our fixed mortgage.

I think ING allow an annual extra was 10K payment and then you had to make a "admin" payment for anything above 10k. For some reason when we paid the 60k we were waived the additional payment. May have just been a COVID thing cant remember.

 

[Taylor]

depends on your bank.

We are with ING and we paid an extra 60k last year on our fixed mortgage.

I think ING allow an annual extra was 10K payment and then you had to make a "admin" payment for anything above 10k. For some reason when we paid the 60k we were waived the additional payment. May have just been a COVID thing cant remember.

The banks at the time were trying to raise capital for security so it could have been right at the right moment they really wanted the money.

 

[HirdsTheWord]

The banks at the time were trying to raise capital for security so it could have been right at the right moment they really wanted the money.

yeah possibly worked out for both of us then.

I mean you could always just set up an offset account. You don't really need to make a payment against the mortgage, just have it in the offset account. Same thing really.

 

[Cuzz09]

$60k extra

Thats awesome!

I dont even clear that much


On SM-G925I using BigFooty.com mobile app

 

[HirdsTheWord]

$60k extra

Thats awesome!

I dont even clear that much


On SM-G925I using BigFooty.com mobile app

Was only a once off. In heindsight it wasn’t even that smart. Should have just left in offset

 

[Brad Goodman]

Yeh na
If you strongly believe something is wrong it’s nonsensical to partake in that act as it just perpetuates the problem

Even if it doesn’t change the world you know you are doing the right thing by your own standards

Agree with you in principle, but I support Newcastle United and I want that sweet, sweet taste of football glory.

 

[Madas]

Kinda seems like you doing something just because everyone else is doing it, go live off renewable energy, its there for you. Just way more expensive. Pot.Kettle.Black. that's exactly why I'm saying investment properties should not be allowed to be claimed as a tax deduction...i suppose you get it now?

it seems your main issue is just because i think myself getting a benefit its not the right thing, than i should be ghandi and give it up immediatley? Rather than say i would be supportive of policy changes to fix the issue. I'm literally saying I'm happy for it to be changed, but because i don't just give it up straight away I'm somehow wrong?

A very odd stance by you.

I don’t think it’s odd at all and I’m not sure why I’m even wasting time replying

If you don’t think something is right don’t partake in it

 

[HirdsTheWord]

I don’t think it’s odd at all and I’m not sure why I’m even wasting time replying

If you don’t think something is right don’t partake in it

Your wasting your time being wrong, doesn't bother me really.

So basically, its black and white for you? if you don't like it stop. We aren't allowed to talk about changing policies etc you know, for the betterment of the actual economy? I should just be a white knight and stop? Say i did, what change will that make holistically, as opposed to me supporting policy change.

That's how you live in the real world?

 

[Suspense]

No, it isn't.

The people who benefit from negative gearing are generally in the top 25% of income earners.

https://australiainstitute.org.au/wp-content/uploads/2020/12/Who-really-benefits-from-negative-gearing_0.pdf

That doesn't show the true picture.

The richest tenth of households owns almost half Australia’s private wealth followed by a “comfortable middle" of 30 per cent with 38 per cent, leaving the lowest 60 per cent - who tend to be younger – with 16 per cent of household wealth.

Income is more equally distributed than wealth. The best-paid 20 per cent of households had an average pre-tax income of just under $300,000 a year, the middle 20 per cent $116,000, and the bottom 20 per cent $41,000.

The rich, the comfortable middle and the rest: Australia’s wealth and income ladder revealed


The "comfortable middle" love a bit of negatively gearing because it's all that they can do to bring down their taxable income - as opposed to the wider tax minimisation strategies that those in the "rich" category have access to. Those in the top 5% aren't pissfarting around with Negative Gearing.

 

[HirdyLannister]

They wealthy households like HirdsTheWord who are on 300k+, removing negative gearing won't impact them so he is happy to remove the tax exemption. Means less competition to buy more properties with the minnow fish dead in the water.

Me personally, Luckily these rate rises won't impact us financially, our debt to income is 2:1 not including the rental which service's itself (positively geared).
I just hate paying interest which is dead money.
We live a pretty frugal lifestyle already, enjoy cooking at home and have no kids while enjoying plenty of holidays.