This country has no idea how bad things are going to get in 20 to 30yrs with housing. when all these modern buildings start falling apart! Even nails these days are cheap weak metal already rusting when new! Some might say the old houses are better built than modern ones!
When you consider how toxic some buildings are with flammable cladding, and poor construction, inner city apartments are basically a domino waiting to fall.
My son in laws unit was riddled with defects. Insurance wouldn't touch it and the builder died. I drove to Melbourne and made the repairs with him in toe. The bloody cladding is still being argued over the government as to who is to pay. Shonky workmanship in Melbourne I have never seen a 15year old building looking so badly constructed.
@@hemmoau The same types of properties are worthless in the UK. You cannot get mortgages or even refinance because the values are so low. As a speculative investment that’s not an issue, you buy for £10,000 but it could be demolished, you can’t necessarily rent it out because it’s a fire risk, and you can’t get insurance. You might have to stump up £100,000 for cladding and more if others walk away. Then your investment might recover rather nicely, but it’s a big gamble.
Being in the construction industry for 23+ years. I tell you now the renovations and even new builds since around 2015 are a money pit for whomever bought them or had them renovated. (Obviously not all) I'm a tiler by trade taught by my father who was taught by an old Italian man. Houses are better then new apartments by far, I've worked on them been asked to do outrageous things all for timeframe and profit. Stay away from multiple story units......
If 80% of rental properties are owned by an 'investor' with a single property investment - imagine how bad many of the underyling financial decions will be? Many will be already underwater and have been absolutely no consideration for zero growth (let alone negative growth) or rising interest rates. More often than not the primary consideration will have been how much the bank will lend...
Heard a really good argument for this, since hedge funds and super funds have assets and backing from banks, the ones that own homes, apartments, commercial can be given a lower rate, so a crash would actually increase their holding unlike 2009 and allowing them and we'll backed investors to buy more for lower. "You'll own nothing and be happy".
The landlady imposed a 60% increase in rent last month. She owns 7 houses outright and I have been renting here for nearly 8 yrs. Land abutters making the most of the crisis'
Geez, my heart bleeds for property investors, especially the one's that think it acceptable, wait, make that morally acceptable, to own 2,3,4 or more properties. Enjoy what's coming for ya!
@@bradg7701 What a ridiculous comment. Property investments risen dramatically over the last 2 decades. If property investment increased supply then supply should plentiful. The only thing that property investment does is to increase demand and drive prices higher and out of reach of first home buyers trying to enter the market. The notion that investors increase supply is a complete myth. Supply is increased whether it be by investors OR first home buyers. Investors have pushed first home buyers out of contention
So glad I stopped being a residential property investor. It made some sense back when mortgage interest and all holding costs were tax deductible and my marginal tax rate was 47% (with Medicare levy) for decades. But once property was sufficiently paid off with help from tenants, it was time to pocket the capital gain and bail, near to return. I now get twice as much gross revenue (5-6% versus 2-3%) than I did from rent, via near zero risk government guaranteed minor bank TDs plus inflation linked Tier 2 major bank debt, and no longer face any of the outgoings or hassles inherent in property investment. Unlike property, TDs and bonds provide optionality in the event of a share market crash, which seems inevitable soon, given unsustainable government debt.
I don’t get the argument about how investors leaving the market reduces rental supply. Because when an investor sells the house doesn’t just disappear… it either gets sold to another investor (in which case nothing changes) or it gets sold to an owner-occupier (in which case that household no longer needs to rent which balances it out).
Good question. I believe it’s because demand on rental supply is so high, that even if supply is handed over to owner occupiers (who make up the majority of purchases), there is still a revolving door of renters needing to purchase. I.e migration. If building supply was coming into the market it wouldn’t be as much of an issue.
The logic is, if a property changes from a rental to owner occupied, it's removed from the rental pool. Which allows landlords with the remaining rentals to request higher rents. One less rental property on the market is worse for the rental market than one less family looking for a rental. And owner occupier usually means a family solely takes up a previous rental property that could have otherwise been rented to multiple tenants.
Negative gearing should be regulated by having a cut off point at either the number of of properties or the scaling down of claimable interest rates. But in the meantime , that would still not be a answer to the problem of excessive immigration fuelling demand.
Land tax increases and compliance increases.. plus agent fees, rates. they all go up. So rents have to go up too.. What choices do they have. If investors sell up then it will be hard for renters to find a home to live in.
We have sold two investment properties off in Sydney happily pay the capital gains and making 5% on the money in the bank far better than what I was making as rental properties with all the associated costs and more upsetting the dramas with filthy tenants we presently have another four properties up for sale and I can’t Wait to offload them, investors are not buying mostly home buyers So I hope the government have some better plans than what’s on the table now to house people as I don’t care just paid for our round the world 112 day cruise and won’t have a worry about whingeing tenants and greedy government, councils, Real Estate agents and the stupid greens party Even if the government does change the rules back again we won’t be interested in investing in property
If you don't buy now our polititians and rba will devalue your cash though inflation. You lose either way unless you invest in something meaningful overseas
I retired at 55 Y/O (am now 66) and I achieved this via industry superannuation (thanks Paul Keating) and good old term deposits. No worries, no hassles. I looked hard at property in the early 1990's and came to the conclusion that it wasn't worth it.
Blackrock, vanguard, private equity, and Real estate investment trusts will buy everything up from them. Giving them good prices so they get slugged full capital gains.
I suspect that that may be a non issue. They only get the rent people are prepared to pay so they cannot price themselves out of the market. And with very low growth, how do they justify to shareholders to lock up so much equity in this potentially risky sector. There is more at play here. And these companies have more overheads than an individual. Unless Blackrock have drunk the property coolaid, I think they will buy with care.
@@veritasliberabitvos454 There is only low real growth. Nominal growth will be large. And the future, until the full reset into digital, will be a story of nominal over real. The inflation and nominal gains will keep investors happy. Of course the rents will rise, but so will their pay packets, Again, Nominal, Ever rise means their real wealth and purchasing power decreases but 90% of ppl will never understand that. Ultimately, the ownership of the titles will be what batters and they will get traded as collateral for god knows how many derivatives.
Property sector is the low hang fruits to ato. The investors tend to be long term, stable and accommodative. The gov knows that so in the hard time they will be sponged dry
I don't really care what happens in Australia anymore. I've made my money and will make more from my investments and live overseas in Asia where I will be treated better than here... Australia will just fund my early retirement.
a windowless dog box, with cladding issues and an exercise bike in the basement (sold as a gym) for which you will pay $5000 per annum body corp fee's... interested? all property doubles every 7 years in straya is the mantra..just buy anything..
Body corporate makes life a misery in some buildings
Most don't do anything or resign.
To expensive and different rules and who holds them accountable
Mark
Too many whinging owners I found
Or lazy
This country has no idea how bad things are going to get in 20 to 30yrs with housing. when all these modern buildings start falling apart! Even nails these days are cheap weak metal already rusting when new! Some might say the old houses are better built than modern ones!
Even roof tiles are cracking when walked on they're so flimsy. Made from sand.
So true - it's the same with furniture! I prefer to buy antiques and vintage over modern as the modern stuff always falls apart!
When you consider how toxic some buildings are with flammable cladding, and poor construction, inner city apartments are basically a domino waiting to fall.
Absolutely silly argument, investment finance is practically unrelated to living conditions issues.
My son in laws unit was riddled with defects. Insurance wouldn't touch it and the builder died. I drove to Melbourne and made the repairs with him in toe. The bloody cladding is still being argued over the government as to who is to pay. Shonky workmanship in Melbourne I have never seen a 15year old building looking so badly constructed.
@@hemmoau The same types of properties are worthless in the UK. You cannot get mortgages or even refinance because the values are so low. As a speculative investment that’s not an issue, you buy for £10,000 but it could be demolished, you can’t necessarily rent it out because it’s a fire risk, and you can’t get insurance. You might have to stump up £100,000 for cladding and more if others walk away. Then your investment might recover rather nicely, but it’s a big gamble.
Being in the construction industry for 23+ years. I tell you now the renovations and even new builds since around 2015 are a money pit for whomever bought them or had them renovated. (Obviously not all) I'm a tiler by trade taught by my father who was taught by an old Italian man. Houses are better then new apartments by far, I've worked on them been asked to do outrageous things all for timeframe and profit. Stay away from multiple story units......
do you mean, holdmark buldings?
If 80% of rental properties are owned by an 'investor' with a single property investment - imagine how bad many of the underyling financial decions will be? Many will be already underwater and have been absolutely no consideration for zero growth (let alone negative growth) or rising interest rates. More often than not the primary consideration will have been how much the bank will lend...
Heard a really good argument for this, since hedge funds and super funds have assets and backing from banks, the ones that own homes, apartments, commercial can be given a lower rate, so a crash would actually increase their holding unlike 2009 and allowing them and we'll backed investors to buy more for lower. "You'll own nothing and be happy".
where is the referendum on migration?
The landlady imposed a 60% increase in rent last month. She owns 7 houses outright and I have been renting here for nearly 8 yrs. Land abutters making the most of the crisis'
Sickening to hear. Our neighbour did the same - own their investment outright but still put it up for the struggling young family living in it.
You can't change greedy. Once greedy, always greedy.
@@AUNZAnon karma
Properties are for living, not for investing.
Good rid dance!
Spot on Bradda! GTFOH ya leeches!
Geez, my heart bleeds for property investors, especially the one's that think it acceptable, wait, make that morally acceptable, to own 2,3,4 or more properties.
Enjoy what's coming for ya!
Let's see how mortgage rates in the low teens cleans out property. I can almost hear the flushing sound now.
Properties are for living, not for investing.
Good rid dance!
@@addictiveaussieit’ll be ripe for those who get special rates (foreign investors and giant corporations).
Those investors lease out properties. When those properties dwindle, you'll see how high rents can go.
@@bradg7701 What a ridiculous comment. Property investments risen dramatically over the last 2 decades.
If property investment increased supply then supply should plentiful.
The only thing that property investment does is to increase demand and drive prices higher and out of reach of first home buyers trying to enter the market.
The notion that investors increase supply is a complete myth.
Supply is increased whether it be by investors OR first home buyers.
Investors have pushed first home buyers out of contention
Rates are going alot higher! Equity mate is coming back to push inflation higher who would have thought!
So glad I stopped being a residential property investor. It made some sense back when mortgage interest and all holding costs were tax deductible and my marginal tax rate was 47% (with Medicare levy) for decades. But once property was sufficiently paid off with help from tenants, it was time to pocket the capital gain and bail, near to return. I now get twice as much gross revenue (5-6% versus 2-3%) than I did from rent, via near zero risk government guaranteed minor bank TDs plus inflation linked Tier 2 major bank debt, and no longer face any of the outgoings or hassles inherent in property investment. Unlike property, TDs and bonds provide optionality in the event of a share market crash, which seems inevitable soon, given unsustainable government debt.
I bet you lost a lot in crypto though /s
My mate sold three investment property this year even his accountant said they not worth it
Why are they not worth it?
Great so the Federal Budget can stop paying $25bn a year in landlord tax refunds?
We would have to wait for Chalmersand Albo to lay off the crack before anything as sensible as that could happen!
they were never landlords. they were only ever debt lords.😙
exactly
Good. Let it collapse. This will turn out just like London in the late 00s. Ghost tower ghettos. Well done.
The chance of any modern building out lasting the terms of the loan are slim to none at All
Good point.
Limit population import to match the volume of new home build for economic sanity.
Not debtslave farming by gov for private profits.
I don’t get the argument about how investors leaving the market reduces rental supply. Because when an investor sells the house doesn’t just disappear… it either gets sold to another investor (in which case nothing changes) or it gets sold to an owner-occupier (in which case that household no longer needs to rent which balances it out).
My thoughts exactly
Good question. I believe it’s because demand on rental supply is so high, that even if supply is handed over to owner occupiers (who make up the majority of purchases), there is still a revolving door of renters needing to purchase. I.e migration.
If building supply was coming into the market it wouldn’t be as much of an issue.
The logic is, if a property changes from a rental to owner occupied, it's removed from the rental pool. Which allows landlords with the remaining rentals to request higher rents. One less rental property on the market is worse for the rental market than one less family looking for a rental.
And owner occupier usually means a family solely takes up a previous rental property that could have otherwise been rented to multiple tenants.
Negative gearing should be regulated by having a cut off point at either the number of of properties or the scaling down of claimable interest rates. But in the meantime , that would still not be a answer to the problem of excessive immigration fuelling demand.
My Victorian rental property went unconditional on Friday. Get out now before the property taxes, rent caps and compliance costs sink you.
4 year term is 8% at la..tr obe!
The stress of it all .exit stage left.
Joe biden still looking for those stairs!
As an end of lease cleaner.... lots of work. Land Rats are wringing their paws.
7.5 percent levy on Air BNB😂 the world is watching this one.
AirBNB’s are being banned in many cities now. They destroy the local market for long term residents, and don’t provide any benefits to the community.
Thanks Mr. Martin.
Why would u invest in properties when u can get hassle free 5percent from the bank.
No renters trashing the place $300,000 damage not paying rent.
Or get a Div Stock and earn ~5% fully franked.
This minor saftey valve in the private property system won't stop the class war that is sure to come.
Land tax increases and compliance increases.. plus agent fees, rates. they all go up. So rents have to go up too.. What choices do they have. If investors sell up then it will be hard for renters to find a home to live in.
This Xmas will be great!
Plenty of information. Thank you
Thanks for watching!
So Negitive Gearing is bad? I think the name gave it away it isn't good.
hahaha yes only in Straya!! shorten lost the election bc he dared tinker with it and we ended up with scumbo for 3 years.
State governments should have done these new taxes years ago.
We have sold two investment properties off in Sydney happily pay the capital gains and making 5% on the money in the bank far better than what I was making as rental properties with all the associated costs and more upsetting the dramas with filthy tenants we presently have another four properties up for sale and I can’t Wait to offload them, investors are not buying mostly home buyers
So I hope the government have some better plans than what’s on the table now to house people as I don’t care just paid for our round the world 112 day cruise and won’t have a worry about whingeing tenants and greedy government, councils, Real Estate agents and the stupid greens party Even if the government does change the rules back again we won’t be interested in investing in property
What a great time to buy…❤ you normally make money when everyone else is running…
Not when you're buying lemons. You would have to demolish a lot of em.
If you don't buy now our polititians and rba will devalue your cash though inflation. You lose either way unless you invest in something meaningful overseas
But what if it's the crack-up boom before hyperdeflation?
@@dianay6691 i don't think Albonese government will allow inflation to fall. It will devalue property values of politicians
The best time to enter a Ponzi Scheme is at the very beginning--not when everyone else is running.
Martin you keep missing the point here: who will buy this lay off investments properties?
Astute and savvy property speculators sell high and buy low. The lemmings quitting now will end up like the other lemmings at the bottom of the cliff.
The sooner Australia gets itself a big new public owned bank to finance housing for those who need it,etc,the better,ask Russia,China etc about it.
I retired at 55 Y/O (am now 66) and I achieved this via industry superannuation (thanks Paul Keating) and good old term deposits. No worries, no hassles. I looked hard at property in the early 1990's and came to the conclusion that it wasn't worth it.
you were wrong.
I'll contemplate your response as I enjoy another day of fully funded retirement (11 years now)...@@DavidAKZ
Blackrock, vanguard, private equity, and Real estate investment trusts will buy everything up from them. Giving them good prices so they get slugged full capital gains.
agree , and then the govt will inflate the profit away
I suspect that that may be a non issue. They only get the rent people are prepared to pay so they cannot price themselves out of the market. And with very low growth, how do they justify to shareholders to lock up so much equity in this potentially risky sector. There is more at play here. And these companies have more overheads than an individual.
Unless Blackrock have drunk the property coolaid, I think they will buy with care.
@@veritasliberabitvos454
There is only low real growth. Nominal growth will be large. And the future, until the full reset into digital, will be a story of nominal over real. The inflation and nominal gains will keep investors happy.
Of course the rents will rise, but so will their pay packets, Again, Nominal, Ever rise means their real wealth and purchasing power decreases but 90% of ppl will never understand that.
Ultimately, the ownership of the titles will be what batters and they will get traded as collateral for god knows how many derivatives.
Not holding my breath, had a house in my neighbourhood sold 20% higher in 29 months.
not in WA.. lots of investors from east r investing here
Thanks!
Thanks, appreciated.
Cliff?
Where does the money go to... stocks?
Maybe to debt repayments and property for children to live in.
what money? its all leverage
Property sector is the low hang fruits to ato. The investors tend to be long term, stable and accommodative. The gov knows that so in the hard time they will be sponged dry
I don't really care what happens in Australia anymore. I've made my money and will make more from my investments and live overseas in Asia where I will be treated better than here... Australia will just fund my early retirement.
Councils jacking up rates big time.
Last I heard Lemmings were too smart to invest
Hello Martin 🙂
Yes. I have a couple of bridges to sell.😂😂😂😂
Lower teh rates! That will fix thing!! #imissreusa
So are prices going down or up 😂?
crashing has started!
Where has it started, hardly any on the market in the area I’m looking!
houses up up up...flats and units down down down
@@geoffvalero3516 dream on ha haaaaaaaaaaaaa!
@@AM-po5ec Toorak?
Hence the property industry is pivoting apartments as the perfect first home buyer opportunity.
Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank as subscriber
Where’s me Fomo 😂🎉
🇦🇺👍🙏
Does anyone have a good property to sell in Brighton Vic or double bay NSW. I’ll buy.
a windowless dog box, with cladding issues and an exercise bike in the basement (sold as a gym) for which you will pay $5000 per annum body corp fee's... interested? all property doubles every 7 years in straya is the mantra..just buy anything..