Fins 2643 Potential Questions
Week 5: Home Ownership
1) When it comes to investing in property, it is generally a huge decision to be made by Australian households. What are the important factors that a person needs to consider before going ahead with such purchase?
* Costs: on-going costs such as council rates, maintenance costs agency costs etc Taxes, such as CGT, GST, stamp duty Price of the property * Possibility of capital growth * Address: social network advantages * Macroeconomic circumstances: interest rate, property price etc * Income level: liquidity
2) What are the advantages and disadvantages of investing in property? Despite economic downturn in recent periods, there are various incentives provided by federal and state government in supporting housing property in Australia. Discuss.
* Pros: 1) CGT main residence exemption 2). Possibility of substantial capital growth 3). A good address can open social doors 4) high collateral value 5) lifestyle 6) hedge against rental expense
Cons: 1) Price risk 2). Interest rate risk 3) liquidity risk 4) high costs * Incentives provided: main residence CGT exemption; CGT 50% discount for holding property>1 yr; Various types of mortgage available; First Home saver accounts(government co-contributes equal to 17% of ur contribution)
3) Most Australian households invest in property through direct investment which is generally illiquid. What are the alternative ways to gain exposures in property?
* Except for Direct ownership, other forms of property investments include: 1) shared direct ownership. 2) listed property trusts 3) unlisted property trusts 4) listed property companies 5) a superannuation fund
4) Compare and contrast between investing in property with respect to other asset classes?
* The main purpose of investing in property is occupancy, income and growth.
Do comparison with shares(less
1) When it comes to investing in property, it is generally a huge decision to be made by Australian households. What are the important factors that a person needs to consider before going ahead with such purchase?
* Costs: on-going costs such as council rates, maintenance costs agency costs etc Taxes, such as CGT, GST, stamp duty Price of the property * Possibility of capital growth * Address: social network advantages * Macroeconomic circumstances: interest rate, property price etc * Income level: liquidity
2) What are the advantages and disadvantages of investing in property? Despite economic downturn in recent periods, there are various incentives provided by federal and state government in supporting housing property in Australia. Discuss.
* Pros: 1) CGT main residence exemption 2). Possibility of substantial capital growth 3). A good address can open social doors 4) high collateral value 5) lifestyle 6) hedge against rental expense
Cons: 1) Price risk 2). Interest rate risk 3) liquidity risk 4) high costs * Incentives provided: main residence CGT exemption; CGT 50% discount for holding property>1 yr; Various types of mortgage available; First Home saver accounts(government co-contributes equal to 17% of ur contribution)
3) Most Australian households invest in property through direct investment which is generally illiquid. What are the alternative ways to gain exposures in property?
* Except for Direct ownership, other forms of property investments include: 1) shared direct ownership. 2) listed property trusts 3) unlisted property trusts 4) listed property companies 5) a superannuation fund
4) Compare and contrast between investing in property with respect to other asset classes?
* The main purpose of investing in property is occupancy, income and growth.
Do comparison with shares(less