Not worth investing in property
- Thread starter Hodge
- Start date
That's the thing - I've only been investing for 5 years and yet to experience a bloody boom or real growth.All my properties are in good locations, 15km to CBD, walking distance to transport, etc. I think I have a while yet to experience growth with all these job losses and factories closing.
5 years? lol I think you need some patience!
That's the thing - I've only been investing for 5 years and yet to experience a bloody boom or real growth.
You're still ahead though? Surely...and well ahead of non-investors.
For these reasons shares win for me, more focused on income these days. Conservative leverage is ok & I don't see shares as dangerous at all. Have more in shares than property now.
I've paid a heap of land tax in the past but not much anymore. I think it's a necessary tax, land is a finite resource and speculative acquisition without development needs to discouraged. There are still too many loopholes though (e.g. State thresholds, trusts).
This is what I am asking myself, am I ahead of an average Joe with no interest in investing? Currently I would say no , perhaps ask me in another 5 years.
I think you're just annoyed with the 'unexpected' bill. I feel ya, nowadays I put aside "tax money" and don't calculate into my cash balance. Less heartache when it's gone.
I got grumpy when I got solicitor fees today that's about double their quoted price 2 years ago
but I will pay It's justifiable grumpy I think
Like any long term plan, the first couple of years are hard. Your concentration in one city with properties that are probably lower cashflow doesn't help.
Most don't last. If you do, though, the rewards are there. Usually.
Don't get me wrong I was expecting the bill and had the money saved for it. I was just thinking for along the lines of $5k than $7500K
Funny thing is I have 2 properties that are 1 minute apart. same size block yet one is valued $8k more according to the SRO. My Father who lives 2 minutes away by walk has his valued $50K less. Same size block, suburb, etc...
Funny thing is I have 2 properties that are 1 minute apart. same size block yet one is valued $8k more according to the SRO. My Father who lives 2 minutes away by walk has his valued $50K less. Same size block, suburb, etc...
E.g., diversify - even in Melbourne's sub-markets - demographically, economically and geographically. I found this has worked well for me in the last 5 years so far. IP1 went up a lot then did nothing & dropped. Then IP2 & 3 went up & more than covered any losses. IP1 recovered some ground in 2013.
I have one in Heidelberg Heights and one in Cloverdale, Western Australia. Land tax in WA is much lower and rents are higher. I agree with you, as a yearly slug, it's a fair chunk of cash. Oh yeah, rates are lower in vic. You should see my rates bill in WA!
Land tax is a PITA. And we have two back to back with a $30K value difference.
Can you sell one of your places to your wife? Do you have a wife? There are all sorts of implications and costs to consider, but this could spread your assets between two people and save you some money (and I think no transfer duty in Vic???)
I own around $3m in residential property and pay a land tax bill of around $500.
Stamp duty is an upfront cost, so its up to you: do you buy or not buy, its a totally controllable cost, no problem on my behalf.
CGT is Australia is ok so long as you hold for at least one year.
Tax man definitely doesn't get his 'fair' share from me, mainly because of the difference between assessable profits and cash flow.
My residential portfolio's are all profitably geared (from a cash flow perspective). New purchases are always at a minimum cash flow neutral. I have no 'negatively geared' cash flow properties even when they are first purchased.
what's Pita...like pita bread?
How the bloody hell do you only pay $500!? My portfolio is just under $2m.
Hi Wylie,
Yes I have a wife but I don't think that would make a difference as in vic land tax kicks in once land is valued over $250k. Unfortunately all mine are.
