The mp3 version came up on random play on my media server when working this afternoon.......had to share :)
(and yes i did stop random play to crank out the rest of the album.....sorry neighbours)
Tuesday, June 14, 2016
Interest rates through the ages.....
I wonder how accurate this really is?
More here at - http://www.marketwatch.com/story/heres-why-us-investors-might-squeak-past-brexit-worries-2016-06-14
More here at - http://www.marketwatch.com/story/heres-why-us-investors-might-squeak-past-brexit-worries-2016-06-14
Monday, June 13, 2016
Another day....another tax on investors....
I was reading the SMH today only to find out that now the NSW Government wants to take a dig at investors copying the recent Victorian state tax hikes.
http://www.smh.com.au/nsw/nsw-budget-2016-foreign-property-buyers-in-nsw-to-be-hit-with-stamp-duty-and-land-tax-hikes-20160613-gpiaap.html
"NSW Treasurer Gladys Berejiklian that foreign buyers of residential property will be slugged with a 4 per cent stamp duty surcharge from next week and pay an extra 0.75 per cent land tax from 2017
The stamp duty surcharge will apply from the June 21 state budget, while the land tax surcharge will take effect from January 1, 2017"
Now here is the real question.......none of this legislation has been drafted for review yet (apart from the reporters claims of his understanding of the proposals).
eg are they going to use citizenship as the basis for "foreigner" definition OR are they going to use the Victorian "Absentee Owner" style of definition?
More on this here at - https://propertychat.com.au/community/threads/nsw-stamp-duty-surcharge.11522/#post-232579
Its interesting to see how quickly "investor" has become a dirty word even though the same effect happens if I was to invest in equities which drives up P/E and drives down yield in your superannuation fund.
Of course what do I know....I'm not running the country.
http://www.smh.com.au/nsw/nsw-budget-2016-foreign-property-buyers-in-nsw-to-be-hit-with-stamp-duty-and-land-tax-hikes-20160613-gpiaap.html
"NSW Treasurer Gladys Berejiklian that foreign buyers of residential property will be slugged with a 4 per cent stamp duty surcharge from next week and pay an extra 0.75 per cent land tax from 2017
The stamp duty surcharge will apply from the June 21 state budget, while the land tax surcharge will take effect from January 1, 2017"
Now here is the real question.......none of this legislation has been drafted for review yet (apart from the reporters claims of his understanding of the proposals).
eg are they going to use citizenship as the basis for "foreigner" definition OR are they going to use the Victorian "Absentee Owner" style of definition?
More on this here at - https://propertychat.com.au/community/threads/nsw-stamp-duty-surcharge.11522/#post-232579
Its interesting to see how quickly "investor" has become a dirty word even though the same effect happens if I was to invest in equities which drives up P/E and drives down yield in your superannuation fund.
Of course what do I know....I'm not running the country.
Thursday, June 09, 2016
Are rental yields too low for continued investing in Sydney property?
I’m wondering if we as investors shouldn’t be calling a temporary top to the Australian property market?
I should clarify my statement here, I think too many people are overpaying for investment properties and accepting WAY TOO MUCH RISK for the yields we are seeing.
At the end of the day investors like us are “bankers” for renters, eg. we as “the investor” are allowing people choosing to spend their money (or banked time as I prefer to call it referring to delayed gratification) either because their income doesn’t allow them to save enough for a deposit OR because their lifestyle choices exceed their income at the moment in order for them to purchase permanent shelter.
At the moment my Gross ROI on property is 3.78% pre-expense and Net ROI 2.82% post-expenses (but before mortgage repayments).
Basically I am “delaying gratification” and banking my time with the view that the return over the long run is going to be greater than inflation, and the person renting from me is banking that their lifestyle choices are better served ‘for now at least’ by renting.
The problem I see is this, investors aren’t being rewarded for the risks that we take that we aren’t going to get shafted between the banks and the tenants.
Basically “property prices” are too high compared to the rental income ROI you are getting per week.
There can be two reasons for this…..too many investors OR lack of other opportunities.
There is exactly the same correlation between this and the current situation with the German bund yield or the other countries that are currently ZIRP.
It probably wouldn’t hurt if we as investors started to “underbid” the market and forced prices to go down in both dollar amount but most importantly allowed wages time to go up….and for rents to catch up to purchase prices so that the yield on property rents were paying a higher return.
Of course the natural followup question is do I pay down my current debts with the excess cash OR do I invest it into other markets eg equities which with 17 & 21 p/e….suck equally as much but this is very much a first world problem to have.
Either way I’m interested in hearing what you think.
I should clarify my statement here, I think too many people are overpaying for investment properties and accepting WAY TOO MUCH RISK for the yields we are seeing.
At the end of the day investors like us are “bankers” for renters, eg. we as “the investor” are allowing people choosing to spend their money (or banked time as I prefer to call it referring to delayed gratification) either because their income doesn’t allow them to save enough for a deposit OR because their lifestyle choices exceed their income at the moment in order for them to purchase permanent shelter.
At the moment my Gross ROI on property is 3.78% pre-expense and Net ROI 2.82% post-expenses (but before mortgage repayments).
Basically I am “delaying gratification” and banking my time with the view that the return over the long run is going to be greater than inflation, and the person renting from me is banking that their lifestyle choices are better served ‘for now at least’ by renting.
The problem I see is this, investors aren’t being rewarded for the risks that we take that we aren’t going to get shafted between the banks and the tenants.
Basically “property prices” are too high compared to the rental income ROI you are getting per week.
There can be two reasons for this…..too many investors OR lack of other opportunities.
There is exactly the same correlation between this and the current situation with the German bund yield or the other countries that are currently ZIRP.
It probably wouldn’t hurt if we as investors started to “underbid” the market and forced prices to go down in both dollar amount but most importantly allowed wages time to go up….and for rents to catch up to purchase prices so that the yield on property rents were paying a higher return.
Of course the natural followup question is do I pay down my current debts with the excess cash OR do I invest it into other markets eg equities which with 17 & 21 p/e….suck equally as much but this is very much a first world problem to have.
Either way I’m interested in hearing what you think.
Wednesday, June 08, 2016
Yugoslavia today......
Wow what a mess. Didnt realise it was still this bad.
Interesting timing though as i just finished watching the last episode of #TheLastPanthers just this week.
Was a good series....though very grim. I thought the grimness was "cinematic"....guess not.
Tuesday, June 07, 2016
Vanguard VPMAX:US
lol....not the rating you want to see on your 401k :(
https://www.brightscope.com/fund-pages/shareclass/vanguard/3537/VPMAX/
Time for a refund Vanguard even if your fees are 0.35%.....I think its time to return some of that $200m you made this year.
https://www.brightscope.com/fund-pages/shareclass/vanguard/3537/VPMAX/
Time for a refund Vanguard even if your fees are 0.35%.....I think its time to return some of that $200m you made this year.
RBA leave rates unchanged
lol i never would have guessed the RBA left rates fixed at 1.75% last night........when i checked the $A this morning (joking).
Bet you the RBA are going to be looking for a 0.25% cut next meeting as i dont see Yellen increasing until September at the very earliest (if not December).
The RBA really are caught between a rock and a hard place. Drop rates....property becomes even more unaffordable, lower rates.....$A goes up and exports become less profitable.
Bet you the RBA are going to be looking for a 0.25% cut next meeting as i dont see Yellen increasing until September at the very earliest (if not December).
The RBA really are caught between a rock and a hard place. Drop rates....property becomes even more unaffordable, lower rates.....$A goes up and exports become less profitable.
Saturday, June 04, 2016
Whirlpool forums
lol been 9 years since I cancelled my internode account to move to New York.......been spending some time recently in the whirlpool forums after a google search turned up a post I was interested in.
lol just remembered why I hated their forums......too many power trippers.
Basically Gnuthad was unhappy with my comments about St George that I posted (pretty much same as here - http://blog.collins.net.pr/2016/06/nice-one-st-george-not.html ) even though 5-10 people jumped in within a few hours with comments and suggestions.
Sieg Heil Sig Heil, you will goosestep now I tell you Sig Heil Sig Heil
I guess seeing I'm not a subscriber anymore its their home court their rules......but thanks Gnuthard....just reminded me why I think closed ecosystems suck.
PS. In case you are a WP user and want free speech and to see what people are saying about St George Bank shafting aussie expats and stopping Portfolio Loans....feel free to check out - http://australianpropertyforum.com/topic/10500992/
lol just remembered why I hated their forums......too many power trippers.
Basically Gnuthad was unhappy with my comments about St George that I posted (pretty much same as here - http://blog.collins.net.pr/2016/06/nice-one-st-george-not.html ) even though 5-10 people jumped in within a few hours with comments and suggestions.
Sieg Heil Sig Heil, you will goosestep now I tell you Sig Heil Sig Heil
I guess seeing I'm not a subscriber anymore its their home court their rules......but thanks Gnuthard....just reminded me why I think closed ecosystems suck.
PS. In case you are a WP user and want free speech and to see what people are saying about St George Bank shafting aussie expats and stopping Portfolio Loans....feel free to check out - http://australianpropertyforum.com/topic/10500992/
Friday, June 03, 2016
Stem cell research reversing strokes
Thats it....i'm going to start eating nothing but small babies from now on :)
Thursday, June 02, 2016
Nice one St George...... (not) :(
Nice one St.George Bank ..... :( just found out that they've changed the rules on your portfolio loans and that they are no longer offering ANY loans to Australian expats working overseas so even though we've paid down our mortgage over $A110,000 over the last 12 months they will not allow us to purchase an additional investment property in Sydney.
Oh and because we've locked in some of our loans until 2020....cant release the equity in order to refinance anywhere else either.
I've always heard about Australian banks being assholes when the going is tough......we're doing great and paying down our mortgages every month like clockwork an additional 10k off the principal over and above regular payments only to find this bullshit about how 'you've changed your mind but we're locked in so cant go to the competition'.
I'll be making sure everyone is aware of what a raw deal St George is giving to aussies expats working hard overseas so they dont get caught in the same situation as us.
Bring on 2020 asap and we'll be taking our business elsewhere.
Ref #4233486
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