fINANCIAL CRISIS

[fish eel]

That is then interesting as the majority of the Property is Residential.

well you may find this interesting then.

sometimes Mark, I actually do know what I'm talking about :lol:

http://www.reinsw.com.au/Renters-likely-to-feel-more-pain/default.aspx

Released 5 February 2008

Already facing rent increases of up to 12% in 2008, the latest residential vacancy rates offer Sydney tenants little comfort. According to data released today by the Real Estate Institute of New South Wales, the city’s vacancy rate came in at 1.2% in January, the 18th month in a row that available accommodation has dipped below 2%.

“There are serious issues behind this figure,” said REINSW President Steve Martin. “House prices are rising, making it hard for some to take their first steps on the property ladder. At the same time, ever- increasing interest rates are making it extremely difficult for others to sustain their mortgage payments.

“These factors, plus the lack of affordable housing stock, are contributing to the scarcity of rental accommodation and pushing up rents in those properties that are available. The flow-on effect means that as rents take a larger slice of people’s income, they are finding it very hard to put money aside and save for a home deposit.”

Rents on apartments rose 5.2% in Sydney in the last quarter of 2007, while house rents rose 3.91%. Investment researchers Advisor Edge have predicted house rents in the city could grow by 10-12% this year.

Mr Martin said that the State Government must make it more attractive for property investors to return to the market and take some of the pressure off supply. While there has been a slight reduction in land taxes, he said other initiatives are necessary to attract investment.

“A number of taxes affecting property investment were supposed to be phased out as part of the agreement between the States and the Federal Government when the GST was introduced,” he said. “We call on the State Government to act on this matter and, by doing so, help offer some relief to struggling renters.”

 

[fish eel]

But when you are investing more in Apartments then House and Land, that changes how much you pay for the land.

I guess that would depend though on the zoning of the land when you first bought it.

If you bought the land and it was subsequently 'upzoned', it can often be like winning lotto :lol:

 

[Bigfella]

Why havent you herd the same thing????

Yeah Twiz. Why haven't you?

 

[MarkInTheStands]

well you may find this interesting then.

sometimes Mark, I actually do know what I'm talking about :lol:

http://www.reinsw.com.au/Renters-likely-to-feel-more-pain/default.aspx

I have no doubt, but the way I read that is that Land Lords are making larger incomes on Rentals. Which if we are the Landlord of some properties is always good for us.

 

[fish eel]

I have no doubt, but the way I read that is that Land Lords are making larger incomes on Rentals. Which if we are the Landlord of some properties is always good for us.

that would be correct

 

[carson]

I have no doubt, but the way I read that is that Land Lords are making larger incomes on Rentals. Which if we are the Landlord of some properties is always good for us.

Actually most residentials would be geared investment, so I would say the banks are making most of the profit out of the raise in rentals as most rental adjustments will be done to offset increases in interest rates.

 

[MarkInTheStands]

that would be correct

Which can only be a good thing for the PLCG

 

[1 Eyed TEZZA]

This conversation is ironic to me because I currently work in a club that is starting to feel the heat and my previous job was a Property Manager in Real Estate. Im not to familiar with the situation in Parramatta though.

The club I work at is now more of a family club rather then a place of gambling. The TAB used to be in the main lounge, now its downstairs, replaced by a coffee shop. I know Parra Leagues just opened a Chinese Resturant, its quiet perfect as a large part of the demographic of Parramatta is Asians, its the first of many changes I see the club making. Plus its apart of the Asian culture to gamble. Souths Leagues club made a really smart/risky move by getting rid of all the Poker machines but I think only clubs with massive financial backing will be able to deal with its initial effects. Im curious as to how they are going to replace the revenue.

Interest rates are going to go up a few more times this year. People are desperate to sell so, if you can afford it, now is a great time to buy. I couldnt count how many reposessed homes we had on our books, alot of which were previous rental properties. Most of the properties never sold for more then they were worth. Fuel has alot to do with it.

 

[Jodeci]

I think you'll find other clubs are in the same boat. The Dragons I know for a fact are struggling with pokie tax revenue.

 

[The Colonel]

Souths Leagues club made a really smart/risky move by getting rid of all the Poker machines

Some, not all and they still hold the licence for the machines just in case.....

 

[1 Eyed TEZZA]

Some, not all and they still hold the licence for the machines just in case.....

Parra got rid of some of their pokies too?

Yeah the Dragons last year had to cut their jersey flegg squad, but that was a precaution thing. The Tigers are feeling it very badly too.

 

[parra-matters]

It was only a matter of time really, the NRL clubs have to be more proative and sourcing revenue them selves. Market them selves better to get more sponsorship dollars.
And maybe a membership system like the AFL clubs do.

 

[COACH STERLING]

Just makes you wonder how much money is actually going to the government directly through poker machine taxes. Must be in the billions by now.....and our hospitals, roads, and rail transport system are still up the sh*t. I know various things are run by the national gov't ect.. but fmd, the money has to be in the system somewhere!

 

[Gronk]

The AFL has/is about to announce 2nd Sydney team to play out of Homebush. More competition for the fan/sponsorship $$.

 

[strider]

Just makes you wonder how much money is actually going to the government directly through poker machine taxes. Must be in the billions by now.....and our hospitals, roads, and rail transport system are still up the sh*t. I know various things are run by the national gov't ect.. but fmd, the money has to be in the system somewhere!

another fine "nothing to show for it" from the nsw govt