Any idea what's wrong with The New Yorker apartment building on Ann Street. They always seem to have a constant turnover of apartments at the $250K mark - which seems a very good price. Is it just that they are under sized in terms of borrowing and therefore not eligible for a loan from major banks?
May 1, 2012 at 9:14 PM
According to the ATO, there were 1,751,679 property investors declared to the ATO in 2009-10 - representing one in seven taxpayers - an increase of 59,235 from the 2008-09 financial year.
Total losses on investment properties were $4.810 billion in 2009-10, or $2746 per property investor, down from $6.528 billion ($3857 per investor) in 2008-09.
Of the 1,751,679 property investors recorded by the ATO in 2009-10, 63% or 1,110,922 were "negatively geared", meaning that holding costs (eg, interest payments, maintenance, and other costs) outweighed income from rents.
Of these negatively geared investors, nearly three-quarters earned less than $80,000 in 2009-10, and the average loss was $9132 per negatively geared investor, or $176 per week.
The concentration of negatively geared properties in lower income and older age cohorts has potentially important ramifications for the Australian housing market.
The risk of widespread selling of investment properties is likely to intensify once Australia’s 1.1 million negatively geared investors come to the realisation that there is little prospect of a resumption of past strong rates of capital growth and they are stuck with a loss-making investment.
"Loss-making Landlords"
1 Comment -
Any idea what's wrong with The New Yorker apartment building on Ann Street. They always seem to have a constant turnover of apartments at the $250K mark - which seems a very good price. Is it just that they are under sized in terms of borrowing and therefore not eligible for a loan from major banks?
May 1, 2012 at 9:14 PM