What will stop this downturn?

I said I paid 1m.

And property tax is based off purchase price, there's a cap on increases unless resold.

 

There may be some costs that you are not aware of. Why the heck are you arguing with someone who knows what they paid for their property - and knows what their tax bill is? In the end, it's none of your business

 

We are comparing taxes. The poster originaly replied to my post with his example.

If I got the calculation wrong show me where. I would actually love to see Total taxes and how they are derived.

I included a link to the chart of applicable tax rates.

If you are saying I'm wrong show me.


If I included an example and some one questioned it I would explain how I got the calculations.

Shouting me down for questioning is not really productive.

 

Further it was his private business until he/she posted on a public forum.
At this point people can question the numbers.

 

Bank will likely do a revalue in 2020. They could probably call it in if the valuation doesnt stack up, for eg. If prices were down 30%+ to when u bought. Reckon its better to call them up and discuss before the IO is due, quite a few investors here have switched over already preemptively.

 

Of course anyone can say anything, it’s just you clearly have no idea what you’re talking about in this case.

I’ve already told you what the house cost and the property tax bill, and that that is standard. And that I’m basing it off my actual experience of having lived there for a decade until recently, and paid property taxes there. Which I’m going to go out on a limb and guess you never have.

No idea why you’re trying to argue it. It’s not my burden to itemise a U.S property tax bill for you but you are wrong.

 

Increased demand will be a requirement, but one swallow doesn't make a summer.

Home loans jump as RBA sticks to rate hike call

The solid result was driven by first-home buyers, while the investor segment rose for the first time since February.

https://www.theage.com.au/business/...sticks-to-rate-hike-call-20181210-p50lbb.html

 

In context, what will quantitative easing by the RBA do...if they do it?

 

I just had to go down this road, scared shirtless as I thought bank value would not stack up, property is in Perth. Pleasantly surprised, value up by $200K from last value 5 years ago...…
But sadly most in Perth wont experience this scenario, in particular apartments

 

I think that is way too broad to know, its just guess work at best... there are way too many variables

ie number of properties investor owns, where they are//location?, product?,
what buffers they have in place? valuations on the properties critical, age of the person.

I think there are more variables but above are just some major items to consider, sure I have left some out

MTR

 

I disagree, I have seen quite the opposite when markets turn, its all about supply and demand, rents will only go up if there is a demand. If there is an oversupply of apartments for example, rents will drop, as we are seeing today in some markets.
Investor stock does not dry up just because people stop buying today, they have to soak up supply first



MTR

 

What's negative gearing? Oh that's right, where you lose money from day 1.

 

tack on about 40% onto the loan repayments..... ouch

 

Thanks for sharing, welcome to forums, what they don't tell, some insist on arguing for no reason, perhaps that's called trolling, no idea?

I have been investing in US since 2011 in various markets, tax bill varies significantly dependent on State.... just saying... I don't touch Texas … ouch

 

And some people present unsubstantiated numbers that don't correspond to actual tax rate to prove a point When challenged get the ***** and say they don't have to explain. To me this is arrogant. To you I'm a troll.

He said $1,000,000 house in California $14,000 land tax(state tax bill)

California tax rate is .79,%

I questioned that it doesn't add up

 

I was not referring to anyone on this forum??

As far as taxes go in US if this is what you are referring to....easy to find this info on zillow, just need the address

 

Tax rates in California counties vary according to the level of bond payments added to the state base rate of 1%

Typically all up you will pay 1-2% purchase price per year in property tax.

perhaps you can move on with your life now?

 

Dead Cat Bounce?

 

Who knows, I'm sure the pseudo economists will be able to answer that question and continue their search for the perfect plan, while those with a good plan will get on with implementing.

 

Not necessarily. I have multiple properties that run at surpluses PRE TAX, but also run at a taxable loss after depreciation is applied. So the properties are CF+ and negatively geared simultaneously. All the Dual Occ's I sell run this way under IO conditions. The generate between 3.5 - 4 K of positive cash flow PRE tax and then they end up running at a loss of 12,13,14K after applying 16-17K of depreciation. This results in an additional 4k - 6K of after tax income being refunded by the ATO ( depending on Marginal Tax Rate) , for a total of 7.5 - 10K CF+ AFTER tax

So that's 3.5-4K positive before a tax return is lodged, and 7.5-10K positive after a tax return is lodged and the 16-17K of depreciation is claimed.

Voila ! CF+ and negatively geared simultaneously.