Post to Facebook on 30/3/19 at 4:49 PM
Commenting on “Property slump drives the biggest wealth drop in seven years”
https://www.theage.com.au/business/the-economy/property-slump-drives-the-biggest-wealth-drop-in-seven-years-20190328-p518l1.html
There is a time buy, and a time to sell. I have been saying repeatedly that those buying a property when interest rate is low, especially those belong to the hands-to-mouth category, you have to be prepared to cop the consequence.
The Coalition government will announce a Budget surplus before the May election. It does make sense that the national economy is in good shape and yet the Australian community is facing the worse real estate calamity?
Can the ABS and RBA statistics and economy and real estate gurus prophecies be trusted?
Liars, liars, liars. They all need nose surgery!
The following is not written in the original blog.
Should any home owners fear increasing debt ratio (debt-equity ratio)? For those who buy and live in the house for a long haul should not worry, provided they have a steady or increasing income after the purchase of the property, unless they have to liquidate this major asset soon due to some financial needs including changing to another bigger one.
I do not like to have unnecessary stress caused my property investment. I am no longer in the high income bracket, and negative gearing is not something I can benefit much from. Making a loss to reduce my tax obligation is far less attractive than making money to pay tax.
Unlike some other form of investment, the transaction costs of buying and selling of properties are fairly high. In addition, the holding cost of a property can also be fairly substantial. These costs, without doubt, will decrease the worth of the property when the property market slumps.
Commenting on “Property slump drives the biggest wealth drop in seven years”
https://www.theage.com.au/business/the-economy/property-slump-drives-the-biggest-wealth-drop-in-seven-years-20190328-p518l1.html
There is a time buy, and a time to sell. I have been saying repeatedly that those buying a property when interest rate is low, especially those belong to the hands-to-mouth category, you have to be prepared to cop the consequence.
The Coalition government will announce a Budget surplus before the May election. It does make sense that the national economy is in good shape and yet the Australian community is facing the worse real estate calamity?
Can the ABS and RBA statistics and economy and real estate gurus prophecies be trusted?
Liars, liars, liars. They all need nose surgery!
The following is not written in the original blog.
Should any home owners fear increasing debt ratio (debt-equity ratio)? For those who buy and live in the house for a long haul should not worry, provided they have a steady or increasing income after the purchase of the property, unless they have to liquidate this major asset soon due to some financial needs including changing to another bigger one.
I do not like to have unnecessary stress caused my property investment. I am no longer in the high income bracket, and negative gearing is not something I can benefit much from. Making a loss to reduce my tax obligation is far less attractive than making money to pay tax.
Unlike some other form of investment, the transaction costs of buying and selling of properties are fairly high. In addition, the holding cost of a property can also be fairly substantial. These costs, without doubt, will decrease the worth of the property when the property market slumps.
