Melbourne house prices falling $200 per day

[flappist]

Originally Posted by Matty4

Since when have you had to pay capital gains tax on your primary place of residence?

When you are in it for less than a year otherwise every property would be you PPoR for at least 30 seconds before the sale......

[Serial_Fool]

Originally Posted by Charliewool

I sold my house at auction last Saturday (15th)... I copped a bit of a hit IF I went by what agents quoted this time last year when the market was at the peak..
BUT, it still sold for MORE than triple (yes TRIPLE) what it cost 10 and 1/2 years ago!
Where or what else could you invest in and expect a return like that?

http://goldprice.org/charts/history/...year_o_usd.png

http://silverprice.org/charts/histor...year_o_usd.png

[GT0132]

Originally Posted by Matty4

Since when have you had to pay capital gains tax on your primary place of residence?

AFAIK you don't. The 12 months holding period only applies to assets where the principal place of residence exemption doesn't apply and gives the taxpayer a 50% reduction on the assessable capital gain.

Provided you can demonstrate the property is your PPOR (which is pretty easy to prove d in it, had your mail sent there and had the utilities accounts in your name ) there is no requirement to hold it for a minimum of 12months.

[Gobes32]

Originally Posted by Serial_Fool

http://goldprice.org/charts/history/...year_o_usd.png

http://silverprice.org/charts/histor...year_o_usd.png

But the benefits of a house is that you can live in it too. Gold an silver just sit in a bank vault.

[XESP351]

Originally Posted by GT0132

Provided you can demonstrate the property is your PPOR (which is pretty easy to prove d in it, had your mail sent there and had the utilities accounts in your name ) there is no requirement to hold it for a minimum of 12months.

That was my understanding too as that's exactly what the Accountant told us when we were selling our (now) rental property which we lived in for less than a month!

[sysh]

.. I guess if you had a property bought about 10 - 15 years ago, you would have made quite a killing (as mentioned by a few of the forumers in the thread), but looking at the auction clearing rate plus the shaky economic grounds that we're experiencing now, I don't foresee the prices sky-rocketing as fast as before in alot of areas. IMHO, I still feel the general housing price in Melbourne is over-priced.. and hope it'll get back to equilibrium

[Serial_Fool]

Originally Posted by Gobes32

But the benefits of a house is that you can live in it too. Gold an silver just sit in a bank vault.

Well it's either one or the other: is a house an investment or a necessary utility?

Historically it's ALWAYS been the former, with the ratio between the price of a home vs annual wages have been relatively constant throughout the 20th century.

The amount of people in this country with their houses as their biggest asset is going to hit a harsh reality relatively soon.

Or I'm completely wrong and I'm just fear mongering, we'll see in a few years.

[Chopped]

Originally Posted by Charliewool

.....BUT, it still sold for MORE than triple (yes TRIPLE) what it cost 10 and 1/2 years ago!......

That's pretty good as you say, so in the next ten years one would expect it to triple in value again ?!

Looks like wages are set to rise then or houses are set to . . . . . .

[sysh]

.. to me, a house is an investment. even though prices may drop, but in the long term it still gives you the necessary capital gains. But of course it's always good to diversify your portfolio if the funds are available.

[Stefan]

The problem with here is people may have doubled, tripled, or even had their property go up 10 times their value but every other property has too to an extent.

So unless you sell and live in a cardboard box you have made nothing.

But of course if you owned 5 or 6 properties its a different story.

[z80]

Originally Posted by Stefan

The problem with here is people may have doubled, tripled, or even had their property go up 10 times their value but every other property has too to an extent.

So unless you sell and live in a cardboard box you have made nothing.

But of course if you owned 5 or 6 properties its a different story.

Or even two properties...

Investment in property really only starts with the second one in my opinion.

But later sell the one you live in at a profit...then move to the other one and make that your principal place for a few years.

Make your investment property in the same suburb and kids go to same school etc when you move.....