Solomon

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About Solomon

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  1. Greetings to all. I have several questions after watching the new "flipping" show on Channel Seven (7) last night - Aussie Property Flippers. As the name suggests it is based in Australia. Without wanting to give "it" too much publicity let me outline the gist of the show. One couple purchased a home in Baulkham Hills in NSW -- $850,000. The other couple bought an apartment in Coolangatta, Qld - I think it was for $300,000. The house sold for $1.3 million after they had spend $140,000 on reno. The couple decided to keep the apartment as a rental after spending $40,000, but it was then independently valued at $440,000. Obviously these windfalls were presented to the viewing public as complete profit after a period of 12 - 20 weeks renovating. My questions are these. Aren't these properties (and all flipping in Australia) subject to Capital Gains Tax? When is this required to be paid? Was the Stamp Duty factored into the purchase price, or is that additional to the price? (This wasn't clearly spelt out in the programme) Are there other fees and charges incurred in renovations by Local Council's, State bodies, etc, in undertaking renovations? (Whilst these weren't mentioned in the programme, they could have been included in the overall renovation costs.) The "profit" the couples achieved, would now, I assume, be subject to Income Tax? Do they have to be registered with some Building Authority in order to carry out these renovations? Are the renovations required to be inspected to ensure they comply with building codes in the various places? I would be interested to hear the answers to a few of these. There may be others as well, which, of course, get conveniently overlooked during the show.
  2. Well I am now convinced governments are incapable of changing the inevitable. They are grasping at any levers they think will work, without any clue what shifting those levers might actually do. I think they fully realise now that they have a runaway train on their hands and they have no means to control it. Is there a train wreck coming, or will it simply run out of puff before coming off the rails. That's what I think they are hoping. First read this article from news.com.au Second play the skynews.com.au video at the bottom of the article. Features Richardson at the National Press Club. (Sorry, I couldn't find a link to the video separately)
  3. On my wage, rent of $650 per week ($34,000 per year) would leave me with only $400 to live on per week. Thankfully my wife and I no longer have any children at home, so we don't need 5 bedrooms and our food bill is a little more reasonable lately, although it's normal for us to spend about $200 per week on groceries. If I throw in a carton, or a few bottles of wine, it can get close to $250. Fuel usually averages $50 per week. That leaves just $100 for all the other expenses. So I struggle to see how an average family with 2 or 3 children could afford that, even if both parents were working. And yet here's the thing I discovered having 5 children of my own. We coped quite ok with 3 bedroom homes. 3 kids to a room and bunk beds, seem to have gone out of favour with the modern generation. I guess, if they wanted to rent for that amount, it would just mean cutting down on/or out of; Private School Fees, Childcare, Private Health Insurance, Comprehensive Car Insurance, Netflix, Foxtel, Internet Service Provider (NBN??), Two Vehicle Registration, Electricity, etc. (I'm a little out of touch, so I don't know what else the modern family pays for) Call me old fashioned, (yeah, I know!) but I still think that's an exorbitant rent.
  4. I have to agree Cobran. It seems that greed wrapped up as "good business", or "free market" capitalism is the catchcry of all western governments. I'm not necessarily a socialist who believes that it all has to be equal, but I do believe in at least a "fair go". I hope the whole sorry mess blows up in the respective government's faces, because as Armstrong often comments; "People only change when it comes down to "crash and burn". Our current group of politicians are only allowing it, because none of them want to be remembered as the politician who rained on the party. They are essentially all "populist" politicians, because that's what got them into politics in the first place. They like to be popular! It is well researched and known that alcoholics, gamblers, drug addicts and every other addict for that matter, only ever change when they reach rock bottom. Until then they completely deny there is any problem. There is all the hallmarks of an addiction in our current home "market". (HOW I HATE THIS TERM ) This is also a sad indictment on the whole human race, that we would rather see people exposed to the elements, then lose our precious equity. I have watched with disbelief and fascination the rise and rise of home prices, thinking that it couldn't possibly go any higher. I have been naive and over time have questioned every aspect of my thinking throughout this whole ordeal. I am reluctant to suggest any longer that it couldn't go any higher, because I have been wrong so many times. I now realise they can stoke the fire as long as they like, simply through immigration and foreign ownership. I now worry more about infrastructure keeping pace. Unfortunately the compassionate side of me is well aware that any "crash and burn" situation, will mean that a whole lot of relatively innocent Australians are going to suffer the consequences well before any politician. I can't help but feel totally impotent in the face of the problem. How, When, Where and Why is this ever going to change?
  5. I would be interested to know the content of that report on Superannuation/Retirement if anyone has access. Not necessarily the details, but rather the themes for how to be best situated if everything occurs that Armstrong proposes.
  6. So we are bloated up with household credit, and household inflation is on the climb. Sounds like a recipe for disaster to me.
  7. Thanks SC. I didn't mean to cause you any angst. Thought there might have been a quick fix that I could implement. Appreciate your trouble on my behalf. Regards, Sol.
  8. Ahh! But that would reveal your integrity zaph. Some people it seems don't have any, or simply don't care. I was always under the impression you were required to excuse yourself as well. I'm not aware of too many people though being convicted for a "conflict of interest". It is usually the after affects (corruption charges) which make for better court cases. I wonder if the deputy mayor is on a commission if the developers get their desired result?
  9. Is there some way I can stop the screenshots in this thread from loading full-size. It takes ages and it always goes right back to the beginning when the site was recently updated. Appreciate some help here guys. Thanks.
  10. Exhausting!! I can't imagine the number of out - takes involved.......
  11. Exactly tor. Martin maybe needs to be reminded that there is "weather" and then there is "climate". I assume climate change, to refer to the long term, for which it requires a more extended period to ascertain. In a similar vein the seasons are generally measured in months but there is no definitive date upon which a season suddenly changes. As we saw late in December 2016 (summer) when it was still snowing in Tasmania. As I mentioned in a previous comment on this subject the effects of the sun's dynamics affect the earth in only 18 minutes. That is a substantial influence on the day to day weather of our planet. As I also said in a previous comment, we may actually get hot and cold operating together, given that is how a refrigerator and air conditioner work. Albert Einstein is supposedly to have once commented that there is no such emperical measure called "cold", but it is simply a term associated with the absence of heat.
  12. The problem being that Prof Keen has lost all credibility with mainstream Australia. The pundits will come back with all the trite answers now to any kind of suggestion of a house price fall. ie; All the banks have loaned prudently. Higher house prices create increased equity and therefore the market is self regulating. There is still a supply shortage (despite 10 years of building). There is no bubble in house prices in Australia, so no requirement for them to fall. Non-recourse loans mean that Australians will not allow house prices to fall. etc, etc, etc.....
  13. I found this article by Bullion Baron, an interesting read. War on Cash In particular because it highlights just how easily a cashless society could be implemented, and I dare say most Australians would simply accept it with a whimper. I feel for all the elderly and seniors who often operate with cash, and who have no access to internet or cards. Frankly, I'm with Martin Armstrong on this topic. I think it is a genuine attempt to reap all the plebs money off them. I would like to know exactly how much the Black Market/Criminal element is actually worth in Australia. Politicians are simply looking for the easiest answer to their growing divide between tax income and expenses. If they keep robbing the credit card to the extent they have, I warrant it will turn THEM all into criminals! I think this is more serious than most Australians imagine.
  14. Venezuela have withdrawn their largest denomination as well. Venezuela cash crackdown Causing huge uproar and could become even worse yet. Millions of people have seen their wealth diminish overnight.
  15. The thing about services is; Who pays for them when there are no jobs in the other sectors. Service people will be paying service people in an endless cycle of unproductive service. But at least it keeps the economy ticking over....