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cobran20

Sydney property slowdown bites as auction clearance rates tumble

17 posts in this topic

Sellers may need to wait until the Shanghai stock market picks up again, so buyers can provide sufficient collateral on the loan applications. :)

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Edited by cobran20

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6 months too early for me :) Want to sell the house when I get back to Aus before the change in capital gains taxes... oh well someone gets a bargain I guess.

I should probably try and figure out the difference between waiting past the change in taxes and doing it now but it is such a pain doing taxes in 3 countries I'd just really like to stop one of them.

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What on earth will we argue about now that property is dropping? :D

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We can argue about which bank will drop dead first :D

Tor, why do you pay taxes in 3 countries? I thought you pay were you are resident. 

Or do you have houses in all kind of places? 

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5 hours ago, staringclown said:

What on earth will we argue about now that property is dropping? :D

We can argue about anything!

Sometimes I even argue with myself.

Actually, no I don't.

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16 hours ago, tor said:

6 months too early for me :) Want to sell the house when I get back to Aus before the change in capital gains taxes... oh well someone gets a bargain I guess.

I should probably try and figure out the difference between waiting past the change in taxes and doing it now but it is such a pain doing taxes in 3 countries I'd just really like to stop one of them.

Do it now before the market sh*ts its pants. I know I know the boy has cried wolf but it seems real this time as banks have tightened lending and there's all the indications of a global recession coming.

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Yes on some charts house prices are declining since 12months already, usually the worst of the decline is finished after 2-5years historically.  But trying to sell while its going down is harder.

That means by about 2022 a couple Australian banks should have gone bust, choked by non-permorming real estate loans.

And credits to cobran, this will help: "

of the $706 billion worth of new home loans approved in 2014-15, a worrying 42 per cent of them were for interest-only repayment arrangements.

And more than 900,000 of them will begin expiring from January, reverting to principal and interest payments.

Graham Cooke, insights manager at finder.com.au, said it would add an average of $400 extra per month to repayments.

"

Edited by Swaize

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22 hours ago, Swaize said:

We can argue about which bank will drop dead first :D

Tor, why do you pay taxes in 3 countries? I thought you pay were you are resident. 

Or do you have houses in all kind of places? 

Investment tax in Aus, Company tax in Singapore and Personal tax in Japan.

Only have a house in Aus and want to get rid of that as soon as possible. RE is a sh*t investment in terms of energy expended.

Fortunately our plan in Japan is now achieved (I have 3 x 5th dan gradings passed in various martial arts and a first kyu in Shodo) so we can (have to) wander off next year to resume just wandering. Interestingly the immigration people have been a little insistent recently saying that we can stay longer than 3 years on a cultural visa (as opposed to what they said 3 years back) but we are kind of burned out after three yrs of 40 hr a week training. We are old and will never be that good against the locals[1] so we will wander the world spreading the arts. So far I think we can claim 5 or 6 countries which feels great.

[1] Did a tournament type jukendo competition against the local army boys and I won; The Polish Princess is the current prefecture tankendo champion; I was silver last year. We opened the Budokan seniors tournament with our kata; We are doing okay[2].

[2] Good isn't enough, we are back next year for competition training :)

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13 hours ago, Mr Medved said:

Do it now before the market sh*ts its pants. I know I know the boy has cried wolf but it seems real this time as banks have tightened lending and there's all the indications of a global recession coming.

It is a great house, we want to spend a few months in it before we sell it. The loss in sale price is worth it for happiness.

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That graph displays a much steeper dive this time, presumably because it is coming off a steeper rise.

link

 

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So you have a polish girlfriend who is awesome in martial arts and you fight together trough the world :)    Pretty cool :)

If you want, you can make it so that, If you have residency in a place without capital gains tax, then you can cut the investment tax. 

Edited by Swaize

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We are trying to keep the fun quotient high :)

My understanding of Australian cap gains taxes is that they change in June and if you are a foreign resident it is better to sell before then.

Also there is something weird about US index funds where you are up for US inheritance taxes or something based on the fund being domiciled in the states.

Singapore however has no taxes for corporate capital gains which are not related to the primary business. So if your company in Singapore has excess cash and puts it into investments they are effectively tax free returns which can then be passed as dividends which are also tax free for the recipient.

(this is a vague understanding which I have only really researched enough to make a decision on the vague direction to start planning in - I am sure there will be more interesting stuff from the accountants as we go through the plan :))

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