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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: Mark Adams who wrote (11539)	11/28/2001 9:58:06 PM
From: Moominoid	Respond to of 74559

I pay $A220 (c. $US110) a week for a two bedroom apartment in a nice development one block from the edge of the city centre shopping areas. I can walk to the ANU campus too about 2km to where my office is here. Going on a trip to Sydney next week - will be a change of pace. Renting is a relatively good deal compared to buying in Australia. Mortgage interest is not deductible for your own residence but there is no CGT either on owner-occupied housing and no inheritance tax at all - inheritors have to pay CGT if they sell the assets with the original cost basis but not if they live in a house they inherited. Apartment I live in probably costs more than $A175k to buy. So you can see after condo fees, property taxes, and maintenance the yield is very low. A lot of individuals invest in condos most of them don't seem too rational and like to deduct the excess mortgage interest, tax, etc. costs against there other income to reduce their income tax bill. I haven't seen any apartment buildings owned by a single landlord here, except serviced/furnished complexes that rent for much more. David