that might depend if you can be lured ( or coerced ) into a reverse mortgage ( and the consequences of that )In nominal values that's likely true.
In practical terms though high house prices are of no benefit to an owner occupier. Sure, your house is worth however much but so what? You need somewhere to live so the money isn't a lot of use in practice.
Given the average interest rate to yield ratio selling a house and renting same quality house has some great wealth creation opportunities especially if you can get double digit returns on the funds from selling a house . It has certainly crossed my mind , 2.5 million cash returning 20% type returns rents a 5 million dollar place with plenty left over to live the dream without touching super and current investments . I am torn on doing this . I know paying $2k a week rent seems ridiculous but the freedom that comes with that type of income and to easily be a gypsy cannot be underestimated . Whitsundays is calling me ..... No house insurance , no rates , no maintainence . Hell can get rentals with pool and garden maintainece thrown in . Selling a house today doesnt seem like a big sacrifice of future capital gains in the next decade . I have 1400sqm block and i am getting sick of the work keeping that looking hollywood .In nominal values that's likely true.
In practical terms though high house prices are of no benefit to an owner occupier. Sure, your house is worth however much but so what? You need somewhere to live so the money isn't a lot of use in practice.
I only recently did the sums on this taxation wise with both my wife and I with 30k each annual into concessional super contributions along with the compulsory super contributions we can reduce $500k returns down to sub 400k taxable and potentially reduce each of us to around $50k tax each a year , this would give up $300k to live of and given $100k covers shelter thats a handy level of $200k ( $4k a week to enjoy life ) I am sure we could likely actually save half of that tbh . I need to speak to a good accountant and get the pros and cons of trusts etc but its definitely something i will be doing
I see the point, but renting isn't without very real downsides in Australia.
Not sure what you are alluding to here , whats your thought process on these downsides ? I rented houses for a couple decades before i bought and maybe i was lucky and never suffered these downsides . Always keen to get all POV
I am just far less optimistic than you on the 20% return..i do my calculations at cpi plus 3%..and it is not a given.....
Simple ones i can see:
It'll depend on location but the basic problem is scarcity.
I do get what you are saying here but i think the hassle of locating a rental is more of a problem at the lower end of the market tbh . Still something i do need to consider if i go down the road of my idea nevertheless . I have a couple REA i have been talking to about selling my house and will hit them up on higher priced rental metrics . Thanks for your feedbackIt'll depend on location but the basic problem is scarcity.
It's not simply a case of paying the money and that gets you a house. Rather, it has become a game of musical chairs where it's a given someone will miss out and nobody wants that to be them.
Hence the language used today is "applying for a rental property". You're applying to be considered to rent it in much the same way as applying for a job. You're going to be put through a selection process that aims to reject almost all applicants. Because there's one house to rent, and there's 100 people lined up outside waiting to have a look through it.
So it depends if you've got any red flags as to how easy you're going to find it but that's the crux of it, you're competing for what is at present a scarce resource.
I am talking about my abilities to return those numbers , i do realise not many out there will be getting that , but if you manage your own SMSF and dont beat the generic super why are you even doing it .
Look i am not saying its for everybody . Most people dont like change and thats fine . I am the guy that before buying a house never lived in the same place for over 3 years and never held down the same job in the same place for about the same time , a mercenary contractor chasing earnings for want of a better word . Ive had so many interesting jobs and lived in some places i never thought i would . I am a diesel heavy machinery tech by trade and i am sick of fixing things tbh . Trading/markets is my passion today which i can do anywhere with reliable internet . I have already started to minimize my foot print to get some choices , i have 5 cars and will get that down to 2 i have probably $100k of tools and thats going . Ive built enough furniture , planted enough gardens , renoed enough house . Possesions can become an anchor and i am cutting that chain . I desire to make the remainder of my life about experiences . This all about options/choices for me . I am a hustler by nature and change is a part of that . I am just sharing my views , not forcing em on anyone . Where most see problems i see solutions . I am doing it while i still am fit and able and mentally sharp
Good points and good thinking in your position Chipp.
This is a bit of a negative but apartment renting makes you a little more minimalist and therefore an easier move . But having to move can be a positive , new surroundings , new adventures , a new place for a meal etc . Being from Brisbane the range of choice within a 90m drive is incredible . Noosa to Coolangatta has a massive amount of places i think id enjoy living . I will remain within a 2 hour drive of Brisbane until my wifes mum passes but then my horizon becomes unlimited . I know people will say but what about family and friends but trust me if you move to Noosa or Whitsundays you will probably get sick of em landing on your doorstep eyeing that spare bedroom for a week or 2
. I know people who have experienced that . Now i was originally from a different state and seriously i probably see many of my friends more often living 2000km away than when i lived in the same city . Inside 4 hours from my doorstep i can be in a friend/families house in 3 other cities in Australia for not much more than $500 return including airport parking , the world is such a small place today and distance just doesnt wash for me . The airfare to different places can be dealt with by churning FF credit cards for the freebie points . A couple can churn 2-4 cards a year with ease giving you more points than you likely use domestically . I am not kidding when i say i have not paid for a flight inside Aust for over 10 years doing this and i fly regularly . Life doesnt have that many roadblocks just roundabouts and speedhumps in the main . Most problems have a fairly easy solution . The struggle can be real but it makes for great rewards when you get to the " destination " A positive can do mindset with a sense of acheivement in ticking of the boxes to get where you want to be is rewarding and if you are happy doing and being where you are thats fine as well . Good luck to all
Jesus..most of Europe do dynamite these..
Collapses of builders have more than doubled in the last year...
To frightened to be caught out by being unable to finish the build with a profit.
www.scmp.com
Makes perfect sense.While tourism, resources and education usually dominate trade between Asia and Australia, a surprising new trade has been flourishing under the radar in recent years – the booming business of prefabricated “prefab” housing and building materials.How Chinese-made prefab homes could solve Australia’s housing crisis
Chinese prefab home exports offer Australian builders a cost-effective way to tackle the housing affordability crisis and deepen trade ties.
Though the numbers may pale in comparison to the billions of dollars in two-way trade between the regions, Australian imports of prefab goods from Asia have been steadily climbing year over year.
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