Australian Housing Affordability Discussion

[cove]

We are fully out of life insurance now. At 67 it isn't really like when you have small children needing an education.
Avoiding flood zones would be something you must absolutely consider when buying any property. You can still get flooded by a broken water supply pipe.

 

[pauly7]

BTW there is a Tent city in Martin Place sydney. Ironically juxtaposed to the Reserve Bank of Australia and Clover Moore

I thought they cleared that :/

 

[JohnK]

Stamp duty is a big hurdle to overcome before you make any money - so make your due diligence equally huge.

Some interesting thoughts.

Money is sitting there earning 2.6% interest less ~40% tax. Not really interested in buying shares. I wouldn't be comfortable in a managed fund. Can't afford expensive Sydney real estate. Not sure what else to do. Buy a business? Restaurant? That comes with lots of hassles.

 

[Steady]

Some interesting thoughts.

Money is sitting there earning 2.6% interest less ~40% tax. Not sure what else to do.

If it's just going to sit there have a look around as 3% isn't too hard to find in a savings account

 

[Mogul]

Some interesting thoughts.

Money is sitting there earning 2.6% interest less ~40% tax. Not really interested in buying shares. I wouldn't be comfortable in a managed fund. Can't afford expensive Sydney real estate. Not sure what else to do. Buy a business? Restaurant? That comes with lots of hassles.

Industrial or commercial property?

 

[JohnK]

Industrial or commercial property?

Possible but wouldn't have enough funds to go alone.

My main criteria is looking for some income for retirement without the risk.

 

[cove]

Have you looked at Big4 bank hybrids JohnK. Less safe than a term deposit.
Are you fully loaded in each of your retirement Accounts?
This isn't financial advice.
Some idiot just paid more than $8.5 million for an apartment in our building in Sydney. I just hope we don't get stuck with higher rates and taxes as a result.

 

[JohnK]

Have you looked at Big4 bank hybrids JohnK. Less safe than a term deposit.
Are you fully loaded in each of your retirement Accounts?

They're not offering much on term deposits at the moment. I've been using the search engine to get comparison websites. Think Citibank had some special rates recently but have to go through too many hoops?

Miss the days of 15% term deposits.

 

[cove]

The current earning on a CBA bank hybrid is over 5%.There are several series on the ASX. They deduct 30% for tax as the distribution is made to your bank account.
This is not financial advice.....

 

[drron]

I'd be very wary of bank hybrids.Certainly not like the old convertible notes.Read the fine print very carefully.If there is a severe housing crisis hybrids will be wiped out.
That said I am still feeling about 8-10 years away for that.

 

[JohnK]

The current earning on a CBA bank hybrid is over 5%.There are several series on the ASX. They deduct 30% for tax as the distribution is made to your bank account.

They look a little too risky for my luck.

 

[whatmeworry]

BTW there is a Tent city in Martin Place sydney. Ironically juxtaposed to the Reserve Bank of Australia and Clover Moore

There are tent cities in Suburban Melbourne in parks and railway reserves. Plus the beggars have moved out to small shopping centres.

 

[whatmeworry]

Some interesting thoughts.

Money is sitting there earning 2.6% interest less ~40% tax. Not really interested in buying shares. I wouldn't be comfortable in a managed fund. Can't afford expensive Sydney real estate. Not sure what else to do. Buy a business? Restaurant? That comes with lots of hassles.

Businesses that depend on discretionary spending at the moment are a bad idea because of ridiculous home prices in Melbourne and Sydney and with so many people in mortgage stress. Shopping centres will become under more stress due to Amazon and their outrageous rent levels.

At the moment you can try to buy somewhere in Melbourne or Sydney a property with possibility of subdividing the townhouses/units. You don't necessarily have to build yourself but many people making money on landbanking before the crash comes.

Seems the millennial's also cop some stick in the USA with avo and all that.

[video=youtube;sFqkHIO33Tg]https://www.youtube.com/watch?v=sFqkHIO33Tg[/video]

 

[whatmeworry]

They're not offering much on term deposits at the moment. I've been using the search engine to get comparison websites. Think Citibank had some special rates recently but have to go through too many hoops?

Miss the days of 15% term deposits.

Too much cheap money out there. Doesn't help with most of the western federal banks printing money.

You can deposit money in the bank and they can lend that "money" to many people. Same thing with Gold. More Gold futures then actual physical gold.

 

[straitman]

Possible but wouldn't have enough funds to go alone.

My main criteria is looking for some income for retirement without the risk.

A good investment advisor will get you a lot more than 2.6% and at low risk. Remember that some of us actually have to live off out superannuation and need a reasonable return whilst remaining risk adverse.

 

[whatmeworry]

I watched a bit of the current Labor leader on his recent video clips. I think the only thing he has done well is meeting daughters of millionaires and marrying them. He really has never had what I would call a real job so I hope he can be replaced by a better pick. Meanwhile the crazy prices in Sydney and Melbourne continue to price many out of the market.

That is probably your worst post ever on AFF. This is akin to the PM's cough comment about Mr Shorten. I hope you enjoy the end of all the baby boomer entitlements once Labor wins the next election and has to fix the mess the LNP, under Howard/Abbott/Trumble have left.

 

[Pushka]

Back to baby boomer comments? Reckon that cove had paid '000000's of tax that the rest of us would have had nightmares over. And employed way more people than we might guess. Pretty sure he deserves any 'benefits' that have legally come his way.

I do hate the way politicians of all ilk happily sprout removing 'benefits' from those pesky rich people (this time taxing Trust accounts) whilst happily sitting on their own wonderful superannuation rorts - er - benefits and automatic pay rises.

Does shorten not understand that recipients of trust funds are taxed at those levels and their 17 year old student trust recipients will have an impossible task claiming any centrelink assistance for years to come, even if they receive no benefit?

 

[love_the_life]

I do hate the way politicians of all ilk happily sprout removing 'benefits' from those pesky rich people (this time taxing Trust accounts) whilst happily sitting on their own wonderful superannuation rorts - er - benefits and automatic pay rises.

Though they seem to prefer to remove 'benefits' from those with much lower income levels. There is much more opportunity for the pesky rich to minimise tax obligations.
But that is off topic.
Housing affordability for those with low/medium or single incomes remains elusive.

 

[drron]

Too much cheap money out there. Doesn't help with most of the western federal banks printing money.

You can deposit money in the bank and they can lend that "money" to many people. Same thing with Gold. More Gold futures then actual physical gold.

That is probably your worst post ever on AFF. This is akin to the PM's cough comment about Mr Shorten. I hope you enjoy the end of all the baby boomer entitlements once Labor wins the next election and has to fix the mess the LNP, under Howard/Abbott/Trumble have left.

Oh my.First you make probably your most sensible post on the economy.Fractional Reserve Banking and low interest rates are far more important causes of High housing costs and increasing inequality of wealth than most of the things you talk about.But which politician is going to change that?A quaranteed loss at the next election.

Then you follow up with your post attacking cove.This from a fellow that spews bile on politicians of the right far worse than cove's innocuous comment.Your worst post and such hypocrisy.

 

[JohnK]

A good investment advisor will get you a lot more than 2.6% and at low risk. Remember that some of us actually have to live off out superannuation and need a reasonable return whilst remaining risk adverse.

Understood. Currently not looking at any further investment products other than what I already have in superannuation. I'd like to do it myself. Have been all my life and would like to think it's still possible. Bonds are a possibility. I'm not sure about securities or mutual funds. The stock market is fairly volatile and I have money invested there already and don't want to go down that path further.

What's the investment property market like in Sale?