There are reasons to be concern about Perth property market.
Think I have to either lower my selling price or sell to foreigners when my townhouses are completed.
Good. Correction is here.
Time to get ready for one more sweep and retire.
Do you have the means to "hold" ? My 6 sense tellsme after the dust is settled.. it will have a V recovery..
Holding ? Trying not to.
I will work out something. Anyway, I have already made alternative plans when Scroobal gave warning the last time.
What warning he gave ? That knn never share his secret with me... What's the secret ?
Europe crisis ? It is confirmed liao lah.. selling Banks, selling Carrefour.. next on the list BP, ALDI... finally IKEA.. we shall see..
Think I have to either lower my selling price or sell to foreigners when my townhouses are completed.
Would like to seek some local expertise. A SG friend wanted to invest in OZ property.
My comments to him are
1.) unless he is working in OZ, else buying an OZ property cannot maximize his $, since he is not able to claim any tax returns for negative gearings.
2.) Any capital gains would be subject to 50% tax.
3.) unless he is looking at buy and hold strategy, but again once his investment property turns positively geared, his property income will again subject to the high taxes.
4.) the only good thing i can think of, OZ properties are still much reasonable compared to SG properties.
SG friend is just an average lesser mortal and holding an OZ PR.
Any inputs for him to invest or not to invest would be much appreciated.
Trouts - please stay away and keep the comments to yourself.
Would like to seek some local expertise. A SG friend wanted to invest in OZ property.
My comments to him are
1.) unless he is working in OZ, else buying an OZ property cannot maximize his $, since he is not able to claim any tax returns for negative gearings.
2.) Any capital gains would be subject to 50% tax.
3.) unless he is looking at buy and hold strategy, but again once his investment property turns positively geared, his property income will again subject to the high taxes.
4.) the only good thing i can think of, OZ properties are still much reasonable compared to SG properties.
SG friend is just an average lesser mortal and holding an OZ PR.
Any inputs for him to invest or not to invest would be much appreciated.
Trouts - please stay away and keep the comments to yourself.
Scroobal made a passing comment and I took note.
Try not to bleed money.
Everyone seems to be interested only in the street-frontage unit.
Not many projects coming online, there are many local buyers, just that banks won't lend, so I am not overly worried. My partner brought in another agent. targetting Chinese buyers.
[COLOR="_______"]Chinese buyers - good.[/COLOR]
Would like to seek some local expertise. A SG friend wanted to invest in OZ property.
My comments to him are
1.) unless he is working in OZ, else buying an OZ property cannot maximize his $, since he is not able to claim any tax returns for negative gearings.
He has to return to OZ within 5 years or lose the PR anyway. So not that big an issue.
As a PR, he has to file an Australian tax return for the income from the rental property, so he can negative gear against that income. The effectiveness of this will vary greatly depending on the amount of rental income.
For example if you buy a 300K property, yielding 300/week or 15K/year rent, its useless for negative gearing as you pay no tax from the 0-15K bracket.
Look at it this way, you can't have best of both worlds, negative gearing is a concession for Australian taxpayers. stay in Singapore and don't pay tax, but you want to negative gear? Doesn't make sense.
2.) Any capital gains would be subject to 50% tax.
Wrong. 50% of capital gains is taxed at your marginal income tax rate for that year, if you have held for at least 1 year. Big difference.
If he lives in it all capital gains during that period are tax free. This exemption lasts for 6 years after you have moved out. Should check the details though.
3.) unless he is looking at buy and hold strategy, but again once his investment property turns positively geared,
Do you expect it to become positively geared any time soon?
his property income will again subject to the high taxes.
It really depends on what income your friend is earning and what is his marginal tax rate. There is no free lunch, high marginal rate helps you when you negative gear and hurts you when you positive gear, that is the tradeoff. The philosophy should be : After enjoying the high capital gains which negative gearing helped you achieve, in comparison that extra 10-15% tax on your rental PROFIT (for most people from 30% to 40% or 45% tax bracket) is a small price to pay in the later years - especially since you are making a net profit.
4.) the only good thing i can think of, OZ properties are still much reasonable compared to SG properties.
There are pros and cons to buying in each market, your friend has to decide which is more suitable for him over the long term.
SG friend is just an average lesser mortal and holding an OZ PR.
Any inputs for him to invest or not to invest would be much appreciated.
Secure the finance first, then talk.
I doubt he will be able to get finance, unless it is for OTP where the developer has an agreement with a bank or something - and other posters have already suggested to stay away from those. Especially Australian properties sold in Singapore - these are the ones locals will not touch.
Trouts - please stay away and keep the comments to yourself.
"The median price [in Perth] is now $512,178, the highest since March 2008, while units have reached a record $385,001" - This is still far cheaper than Vancouver houses where the median price is $900,000.
Please explain this..??
[COLOR="_______"]Ah-but-then !.. this the reason why I live next to the Chinese -> Balwyn, Kew & Camberwell.. sure win ~![/COLOR]
There are *ongoing* bank interests to be paid on this investment. Hope this answer your question.
Please explain this..??
[COLOR="_______"]Ah-but-then !.. this the reason why I live next to the Chinese -> Balwyn, Kew & Camberwell.. sure win ~![/COLOR]