I have a 29yo daughter who is still living with her mother.
She has been saving for years to buy a place of her own.
She wants to live in specific suburbâŚwhich she cannot afford to buy even the cheapest dump.
Some years ago I suggested that she look into buying a unit/apartment/flat in a cheaper area, close to public transport and amenities, that she could then rent and get someone else helping her to get the equity to get somewhere better.
Geoffrey Boycott couldnât have played a better flat bat than she did to my suggestion.
If she had taken my advice, she would a lot closer to achieving her dream.
Instead, she is still living with her mother, bought herself a better carâŚand has less money saved.
And possibly about to go up.
I caught up with my financial advisor this arvo to tidy up some stuff before we go overseas next month and his advice was to pump money into property as with the rate cuts and possible future cuts he and many others are predicting property to rise by 10-15% over the next 12-18 months and that he is already seeing investors load up further.
As a side note he commented that he had had several clients over the last week enquire about funneling their super out and hiding it before the government policy kicks in. He finished with the sage advice of do not let this government have any of it 
Well thatâs true.
Minimum wage in Australia is 24 dollars an hour.
Or 15 USD.
Iâm not sure paying your poorest workers an extra 4 dollars an hour is what is making houses so expensive in Oz. I could be wrong.
And I still think land content is by far the biggest cost still on a home.
It is much harder to borrow in USA for a home, hence house prices are much lower.
Rule of thumb as I was told, that for a $500K home you need a salary of $125K per year. You will not get a loan if repayments are more than 35% of your income.
We were looking at buying a house in Houston when we had the factory there, pre-Covid . Average price was about USD250K and for USD500 you could get something very nice on nearly one acre of land. Houston is not the greatest city but it is not bad.
Not in now, Australia given the current building costs.
Either way our country is very high up on the list of countries with stuffed housing markets.
Most of those super funds in excess of 3m are property portfolios sitting in an SMSF.
I think the rules will have the opposite effect. People will sell.
Particularly if the smsf is in pension phase and the owner can sell them for 0 CGT to get below the threshold.
Which should be criminal really. Another not well advertised tax haven actively encouraging property speculation, pricing owner occupiers out of the market.
There are people touching their super to buy houses that shouldnât be at all.
Government brought in negative gearing
Government donât limit the amount of properties people can have an investment.
Anyone over the age of 65 if they have their property investment portfolio in superannuation can flog their property without paying any capital gains tax.
Itâs a rort. These boomers already get a break on millions if purchased prior to the mid 80s.
Then they pay zero on disposal as they continue to accumulate it in retirement within their super funds.
â â â â off and leave housing to people who need it.
US gets most of its building lumber from Canada.
Whoops. That just went up with Trumpâs tariffs. Whoops. Canada is deciding to sell its lumber elsewhere as it doesnt want to be th 51st state. Whoops.
Exactly. Some people on here know that when I realised 16 years ago my two sons were not going to be able to ever buy property we bought an investment between us. I put my house on the line which I wouldnât have for either to buy a house to live in.
As investment is a different proposition which I basically controlled given I had the most to lose. But we bought it purely looking for capital gain to give them a deposit. Due to the GFC didnât go up quite as much as I anticipated, but after 10 years we sold it and it gave both of them modest deposits. They then both bought places they could afford.
One had a partner so was able to buy a house in the suburbs for about $500k (now about $8-900) second bought the unit in surfers for $255 k now valued at about $6-700k which he now has rented, which has enabled him to buy a house in Perth where he now lives.
Have to work within the system to get the best for everyone.
Capitalist market economy, will never limit property ownership, not sure it affects house prices much as the over bidding frenzies I have seen.
Thatâs great, and Iâm working to do the same for my kids when they are ready. But you both have to realise there are hundreds and thousands of people whose parents either canât or wonât do that for them.
âThe systemâ â â â â â those people if we are being plain
Property has got to the point with all the incentives that investors ignore yield to speculate purely on the equity.
They donât care.
So it definetly distorts investment markets. Too much capital chases something which shouldnât be a speculative financial asset.
It undermines society.
Point in case the ridiculous situation anyone under the age of I dunno 40 finds themselves in when it comes to housing themselves.
Look a little harder.
Iâm not talking about boomers, there are people in their 30s and 40s doing it that should not be.
I understand that. There are ways to work within the system that may have dealt the lousy hand. You just have to find what can work for you.
Buying with friends another option which can be fraught but with good legal advice can be done.
But I always would suggest buying an investment first because it takes tge emotion out of it.
You donât fall in love with a cute little investment property, you buy based on cold hard facts and figures close to transport etc etc.
Property full stop doesnât belong in superannuation.
Age is irrelevant, but yeah the idea you can load up an investment portfolio within super and off load it without paying any CGT in pension phase simply by putting it through superannuation is wrong.
Itâs just another property rort.
Its why they need the 3M plus super tax, its why the government puts in land taxes on the state level for property out of super.
To force these properties back on the market.
