AFF Member Real Estate Discussion

[Quickstatus]

The details escape me but they don't have to pay land tax

is it PPL (primary production land?)

 

[Happy Dude]

is it PPL (primary production land?)

It might be capable, so maybe that's all that's needed, but it's not currently producing, or being set up to produce, anything.

 

[MARTINE]

ATO is very strict about PPL
Running a few acres with a couple of veges to sell at the farm gate wont qualify

 

[Mr_Orange]

...
For me , real estate has slaughtered equity gains last few years and any interest rate cut should see more...

Well, we finally got an interest rate reduction!

 

[cove]

One quarter of one percent does not do much.
For those with mortgages the size of telephone numbers it would be a bit of relief.
We don’t have any mortgages.

 

[cove]

Another 0.25% interest rate drop should help those folks with mortgages that are not fixed.

 

[Mr_Orange]

Another 0.25% interest rate drop should help those folks with mortgages that are not fixed.

Yes, I was happy to receive an email from Bankwest informing me that they will be decreasing my rate by the full 25 basis points.

 

[Freq Flier 2013]

What are some of the lower interest rates? After this rate reduction I should be on 5.48% owner occupier P+I.

 

[Mr_Orange]

What are some of the lower interest rates? After this rate reduction I should be on 5.48% owner occupier P+I.

That's good. I'll be on 5.64% after the rate drop. Who are you with?

 

[Captain Halliday]

0.25% for us too. Not being applied until mid June though.

Will get us back to 5.44%

 

[Mr_Orange]

Not being applied until mid June though.

My rate change kicks in on 30th May.

Looks like I need to go sniffing around other mortgage providers since your rate is also lower.

 

[Chicken]

What are some of the lower interest rates? After this rate reduction I should be on 5.48% owner occupier P+I.

I'm on P+I as well for my PPOR
Reduction on June 01
no offset 5.64 - 0.25 = 5.39
with offset 5.74 - 0.25 = 5.49
This is Australian Mutual Bank

 

[Freq Flier 2013]

That's good. I'll be on 5.64% after the rate drop. Who are you with?

With the nab.

 

[prozac]

One quarter of one percent does not do much.
For those with mortgages the size of telephone numbers it would be a bit of relief.
We don’t have any mortgages.

Any rate reduction is going to fuel more price rises. If we are to provide the opportunity for the younger generation then perhaps interest rates need to rise! This would reduce the demand on housing and see prices fall.
The caveat is there is alot of foreign investment in major city property from people who pay cash. This might just fling open the doors of the lolly shop for them. Imposing a foreign ownership tax does not necessarily work as there are a number of ways around this such as establishing a local trust or simply buying an off-the-shelf company.

 

[lovestotravel]

I wish rates were 10% plus TBH

 

[Brissy1]

Any rate reduction is going to fuel more price rises. If we are to provide the opportunity for the younger generation then perhaps interest rates need to rise! This would reduce the demand on housing and see prices fall.
The caveat is there is alot of foreign investment in major city property from people who pay cash. This might just fling open the doors of the lolly shop for them. Imposing a foreign ownership tax does not necessarily work as there are a number of ways around this such as establishing a local trust or simply buying an off-the-shelf company.

There's a small gap between interest charged on owner occupied and investment. Perhaps if that was increased, dramatically, you can have a both ways.

 

[prozac]

There's a small gap between interest charged on owner occupied and investment. Perhaps if that was increased, dramatically, you can have a both ways.

Then the market won't correct which is the reasoning of my suggestion to increase interest rates. With the government recent approval with India to accept another 500,000 visas this is only going to fuel further demand.