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Nope… it’s got years left! It’s the only state with value still

Well this didn't age well...

There's no negative gearing in SMSF, so you don't want to be too negative cashflow either. But I agree, growth is more important than yield while we're young

Great Vid as always!

Negative gearing was introduced to increase the number of rentable properties but that didn't happen because people bought inner city properties and negatively geared them. That does not increase the number of rentable properties. The reason why negative gearing was allowed on existing properties was because newly constructed properties require work and risk and the people making the rules did not want the extra work and risk involved in building a new property. The people making the rules were public servants. You have to understand that a business can negatively gear because there is work and risk and you often have to build new industry. Public servants don't want that. They preferred to rape young people's lives by taking the properties they would buy to start their lives and rent the properties to them. This is the main reason we see a very high level of apathy among young Australias and an incrediblely low birth rate. I will add that Australia public servants are now the highest paid as a percentage of GDP to any country in the world. This was done in the past 20 years during this period when our lives were dictated to buy them more so than any other period in history. To correct what has been done you have to drop negative gearing on existing properties younger than ten years and make it even more attractive to negatively gear newly built properties. I guess there would need to be a grandfather clues as well. Please I am not complaining. I am 65 and watched all this in my life time. I am highly educated and a self made multi millionaire. But the reality is the vast majority of Australians are not lucky like me. They are victims.

The 5.7 Billion a year (current level) that the govt are losing is certainly incentive for them to seriously contemplate the idea.

Means nothing for normal mortgage holders, if we wake up tomorrow and the house prices have doubled. It creates a false sense of profit 'equity', just means more people will take out more debt against their homes. Watch the fall in the coming years

Reducing/removing negative gearing disincentivizes owning rental properties. This will apply a downward pressure on property prices as people who cannot afford to own investment properties at a loss will sell them/not buy them as much. In turn, this will make owning a property more affordable, which will increasing demand at the lower prices, converting renters to owners, decreasing the number of renters (and applying a downward pressure on rent). However, this will not decrease build cost of new properties, which leads markets upwards over time with inflation. The cost of owning units in this current market are closer to the costs of rent (at which point anyone should logically buy instead of rent) than the cost of owning houses, therefore, we would see a market correction away from investment ownership to owner occupiers mostly in freehold houses. This would reduce the housing burden on the economy significantly for owner occupiers and renters while still offering ample investment opportunities in units (which also have higher depreciation ratios as a percentage of purchase cost). Remember that when cash rates are 4.35% and the bank charges a 2% margin, your $1000pm payment is $825 interest ($565 of which goes to RBA via the market, which takes its costs of running out and passes the rest onto the govt as income). Think of it as 56.5% of your mortgage being tax right now. Basically, it is better for everyone (even investors) if prices go down (making us all pay less tax directly or indirectly). The issue is that no one wants to be left holding the bag when the correction occurs.

Good 👍

Immigration. The rest is just noise. 2.7m temp visa holders in Australia. They all have to live somewhere.

Old news, its not gona happen and thank god common sence prevailed

Of course they won't go after multi national companies for company tax.

It won't happen. Australia is too unproductive and relies on export of property to foreign buyers and local investors. Remove that and you have Venezuela

Overpriced Dullsville , just a matter of time look at history ! 😮

Tax the pricks. Why should they get a dodge other investors don't.

Crypto is the best future where people make money and generate strong returns.

demand goes up, supply needs to go up as well. It'll be crazy for them to make moves to reduce supply even further

We always hear of the government finding new ways to tax and punish us. But never hear of ways to reduce costs. Where are the grand visions to tackle this supply problem, where are the city, town and infrastructure planning to accommodate everyone?

Surely the ALP are not that dumb! They only need to look at what happened in NZ r.e. negative gearing reforms to know better! WHAT THEY REALLY NEED TO DO IS STOP TAKING MONEY FROM THE BIG FOUR BANKS AND MAKE INTEREST RATES FIXED FOR THE LIFE OF THE LOAN LIKE MOST OTHER FIRST WORLD ECONOMIES!

Negative gearing reforms will drive up rent by 20% !!! Leave Negative gearing alone Labour Government, it’s not a win win situation

never ever thought in my life time a crappy 3x1 on the beach 16 kms from the city would ever be worth $2 million. Really don't know if I should sell or subdivide my 2200 sqM block?

Vacancy rates are still super low. Rents are still going up. Days on market have increased slightly, but that could be due to spring/summer selling. I don’t think a quarter percent rate drop is going to have much of an impact. Wages haven’t gone up, so affordability is still an issue. And mining has dropped off. I think it will start to slow and hold steady for a while.

Agree & loaded with full capacity!!

Thank you for sharing

I locked one in Werribee last week!! Hope to see 10/15% gain next 18/24 months!!

what about Traralgon in Victoria

Would you say shepparton is starting to make sense?

Uni student numbers will dramatically reduce next year, alot of places will be available to rent. Currently 40,000 that will reduce dramatically with Murdoch losing 38 % or 2000 students being stopped.

Yes listings have increased dramatically in the last two weeks.

Already past the peak. Listings have increased 30% in the last month. More downside to come as China slows due Trump policies.

Another 4-5 years, at least.

Millennial that missed the boat in the Perth market. At this rate I'll be retiring in S.E Asia.

Many suburbs in perth past 1 to 2 million again you need education boy!!

Too many people moving to perth shortage of housing as they say you need education boy ..

Great video mate, if you are the first home buyer, would you like to buy house in perth now?

I think now it is reaching peak but mainly because I feel people are waiting for what the RBA will do due to people wanting their borrowing power to increase. A neighbour is trying to sell their house and it’s been on the market for 4 weeks and they have dropped their prince from 1.25 mil to 1.1 mil. 6 months ago a house in our neighbourhood would be on market for 10 days max. That’s when I noticed that things might be cooling until the RBA makes a new decision 🙂‍↔️

Going strong still. It will be kerosene on the fire when interest rates drops early next year or before.

Already bust!

Ponzi

Busting

What about the recent commodities hit? Don't you think all the mine closures will impact the economy? And government spending?

Great stuff Julian. Just wondering how you guys gonna manage the property if I buy with you? Thanks

Agree, if you can, now is a great time to buy!

Great information, thanks😀👍

Thoughts on Townsville?

This did not answer the question hahaha. This entire summary is based around rental yields. Rental yield is one of the least important things investors consider when buying property. And as far as your indication that rental yields affect servicing and thus will affect price growth, is not reality. There are countless areas in Sydney (with multi-million $ properties), where the yield would not service the debt on a 80/20 LVR. The ONLY indicator of price growth in any market is owner occupier demand. The truth is in the data. Supply & demand, that is it! Rental yields are almost irrelevant to an investor who knows what their looking for. So your advice is misleading my friend.

The second they cut the insane third world invasion the whole Ponzi scheme comes crashing down

Why are the insurance premiums higher ?

Julian, how are you? I am a regular viewer of your TH-cam channel. I came here to say that- Your content is always engaging and incredibly well-presented!" Good luck to you.

Interested to know if you still don't include your buyers agents fees in the property purchase cost calculations so it makes them look better?