notpom

Best way to waste money on real estate in Adelaide

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    Is to buy a home without waterviews.

     

    We have seen an article about 36% growth in Seacliff.

     

    Here is the new one, and again - the best capital growth is in seaside suburbs.

     

    http://www.adelaidenow.com.au/realestate/news/kingston-park-has-highest-increase-in-house-values-in-adelaide-for-2015/story-fni0ci8n-1227303645063

     

    If you think that I am squeaking the same thing like an old parrot - you might be right. But who cares if the parrot yells the right things?

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    <yawn>

     

    For the Sheidow Park it is yawn indeed.

     

    Say you have got a house which a year ago was worth $500K. 30% growth - your house earned $150K a year.

     

    Did you earn $150K last year?

     

    Not only you did not earn this much, I bet you have not noticed a flaw in my calculations.

     

    Tell what it is, then you will earn moral authority to yawn.

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    I did have stunning sea views.

    However, did not have any say, consultation or recourse when a neighbour blocked them with a double storey alteration.

     

    Totally agree. Having seaviews that potentially can be blocked - is like not having them at all.

    Say you are on second street from the Esplanade. The only land that is worth buying there are lots opposite the streets leading to the Esplanade. Nobody would build at the middle of the street, and nobody will ever build in the foreshore reserve.

     

    But if your views are over single storey house - it is only matter of when not "if" your views will be outbuilt.

     

    Some people think they are entitled to object to blocking the views. Principle is that no one has such an entitlement.

     

    Choose the position carefully.

     

    Sometimes it goes quiet weird. One of my friends bought on the slope in Hallett Cove. There was the brand new house in the process of building between his purchase and the ocean. He signed contract the very day the roof went on and it became clear that it does not block the views.

    In couple of months time somebody have bought that brand new house and straight away proceeded to add the second storey.

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    Do you get any party invites, Notpom?

     

    A lot. But I only accept if I know there will be people there more intelligent than myself, so I can learn something useful.

    But generally I can not stand drunken yapping about nothing.

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    For the Sheidow Park it is yawn indeed.

     

    Say you have got a house which a year ago was worth $500K. 30% growth - your house earned $150K a year.

     

    Did you earn $150K last year?

     

     

    Not only you did not earn this much, I bet you have not noticed a flaw in my calculations.

     

    Tell what it is, then you will earn moral authority to yawn.

     

    Back to yawning.

     

    Yawner did not seem to be able to spot the flaw in the calculations. Despite it is obvious.

     

    When you live in the house, all your house earned is tax free. If you rent it out - three quarters of what your house earned is tax free (but you get rent).

     

    To earn $150K after tax at your days job you shall be earning very close to $300K.

     

    Please try to yawn when you think about that.

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    Depending on which esplanade you want to live, you pay over the odds for a building worth no more than something way inland and a huge amount for a so called 'sea view', really a stretch of water with absolutely sod all happening worth viewing. If you really want a sea view, move to Sydney Harbor.

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    Is to buy a home without waterviews.

     

    We have seen an article about 36% growth in Seacliff.

     

    Here is the new one, and again - the best capital growth is in seaside suburbs.

     

    http://www.adelaidenow.com.au/realestate/news/kingston-park-has-highest-increase-in-house-values-in-adelaide-for-2015/story-fni0ci8n-1227303645063

     

    If you think that I am squeaking the same thing like an old parrot - you might be right. But who cares if the parrot yells the right things?

     

    I disagree with this. If you were to rephrase the first part to say the best way to realise large capital gains is to buy property with sea views then I would agree. However the best way to waste money is to buy a home that does not suit your needs and/or in an area you are not happy with. When buying a home you have different requirements to when you invest in property and a sea view is not necessarily at the top of the priority list. If you buy a home purely from a capital gain pint of view with no consideration to how well it suits your needs you are unlikely to be happy and want to move sooner, with the resulting costs of moving likely to cancel out anything but the most serious of capital gains.

     

    The other thing you fail to mention is that unless you sell your property your capital gains are made on paper only. Until you sell you cannot be sure that your property will make the gains that seem to be promised by the local market. And for most of us making a gain on paper is worthless as a paper gain cannot put food on the table. The theoretical capital gain is only worth anything to those who can leverage it to invest further to build their portfolio.

     

    The other problem with the whole increase in house price by suburb thing mentioned in the article you quote is that it is based on actual house price sales by suburb. In many cases the number of houses sold in a suburb are really quite small - just 10 or 11 in some cases. When looking at such small numbers any gains could be more to do with the types of properties being sold one year compared with the types being sold in other years. When massive gains are seen it could simply be that the previous year all the houses sold were small houses on small blocks and this year the houses have been larger on larger blocks.

     

    Just to go back to the original point about being near the sea being important for capital gains it is interesting that in the article you quoted although the top performing suburb is by the sea most of the rest of them are inland and none of the rest are by the beach.

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    I disagree with this. If you were to rephrase the first part to say the best way to realise large capital gains is to buy property with sea views then I would agree. However the best way to waste money is to buy a home that does not suit your needs and/or in an area you are not happy with.

     

     

    Too many letters, about common delusions.

     

    Whether you buy for yurself or not - real estate is a biggest investment (and growth asset) you ever make in your life.

     

    The biggest mortal sin in real estate is to think of your purchase as a love nest, not a money making machine.

     

    And fairy tale that you can realise RE capital gains only when you sell - it is just that - a fairy tale. Reality is quiet opposite. Capital growth in reality is never ending source of tax free money. Plus think about rent which doubles every 12 years, while your mortgage repayments remain the same.

    Five decent houses bought in 2000 now bring more net income in rent than so called "average salary".

     

    And year 2 maths - 30% growth in seaside suburb where houses cost in a region of half a million - it is bigger money than 10% growth in a house under $300K.

     

    And what in share market is called "insufficient volumes" in property market is called "property shortage" . And this is exactly what I am telling - you have to go for the things that are in short supply.

    Edited by notpom

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    Please don't feed the troll anymore. Going over the same old crap ever few weeks just gets him off and gets the rest of us us nowhere.

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    Five decent houses bought in 2000 now bring more net income in rent than so called "average salary.

     

    Not sure I could charge too much rent to people when there's already 5 of us in the house...

     

    Most of us buy a house to live in and luckily different people like, want and need different things when looking at areas to buy (or rent) and although there can be great financial benefits to owning a property portfolio it's a good job we can't all do it or there'd be no-one to live in the houses you've accumulated.

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    Wonder how those poor people in NSW are feeling today about their 'waterfront investments'.....

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