Negative Gearing and Australia

HA and I have friends here in Oz that have been investing in properties throughout Canberra in the last couple of years. HA really wants to get into the invest property business and has asked me if I'd be interested in going in on a property together.

I've thought about it and I do think that buying a property in the CBD of Canberra would be a good idea. With so many government officials here and contractors for government agencies and the university, I doubt there's ever a shortage of people looking for properties.

My general issue with it is that the price of property in this country is OUTRAGEOUS. I couldn't afford to own my own home in this country. The apartment I live in, which about a third the size of my house in Phoenix, runs, easily, for mid-six figures. That's a one-bedroom, one-bathroom. What makes it even crazier is that salaries aren't adjusted for this higher cost of living. So given that, I'm not sure how my friends, who make realitively the same amount of money as I do, can afford their own rent, plus the mortgages of their multiple investment properties.

In theory, the investment properties should pay for themselves. Or at least I would think that's how it's supposed to work. But no so in Australia. In Australia, they do this thing called Negative Gearing. Here's how it works as I understand it - You buy a property that you plan on utilizing as an investment. The weekly mortgage is $750 but they're renting it out at $650 a week. Clearly there's already a $100/week loss. Then when they do their taxes, these losses are fully deductible and depreciation is taking into account. This will typically provide the owner with a much larger refund which then offsets the losses of the property.

So my question is - how is this a good idea?? I feel like I must be missing something about this whole scheme. If you read about this on Wikipedia, it doesn't sound like a good idea at all and apparently, this is illegal in most other countries. Am I missing something? Could I be an Australian real estate mogul but I'm too dense to realize it?

Running, running and gettinng no where...

So two weeks ago, I told everyone that I wanted to start running to help lose some weight. It started off pretty well. For the first couple of weeks, I was running three times a week and going to the gym. But then over the last two weeks or so, I've been slacking off. I've got plenty of excuses but well, if I were really motivated, I'd find a way to make it work. I'm going to get back on the band wagon in the morning by going running with HA and Snowie.

I'm not sure how people do this running thing on a regular basis. I work late so by the time I'm done, the gym is close to being closed and it's too dark to run. So this leaves me with running in the morning. But as any of ou that know me know, I hate getting up in the morning. I'm so not good at it. But I'm gonna give it a try.

Just for the record, I have lost 2 pounds so far. Not exactly the pace at which I need to be, but at least it's something. Stay tuned..

Thoughts come clearly while one walks

When I first moved to Australia, I dropped a bunch of weight. This was primarily due to the fact that I was walking EVERYWHERE. I love walking everywhere. I love not having to worry about filling the car with gas or scheduling oil changes. I love being able to leave whenever I want to without having to worry about traffic. It’s a lifestyle I quite enjoy.

There are some things that make all the walking really suck though. The biggest one is the winter. It really SUCKS to have to walk home when it’s cold outside. I wear a lot of dresses to work so during the winter, just to make it to and from work, have the choice of either a) walking in the freezing code or b) wear tights. Tights. Every time I wear them, I feel like I’m five years old again. What grown women wears tights? But its unbelievable how warm the tights are. And it helps that a good portion of the grown female population in Canberra wear tights as well. But it’s such a pain. This is definitely one of the reasons I live in Phoenix. No one wears tights in Phoenix. It’s too bloody hot!

One of the perks though of walking everywhere is that I lost a ton of weight. I got here and the weight just fell off. I was back to my early college weight and a size 10. I loved it. I felt so good about myself. But over the last few…five….months I’ve slowly put on weight. I partially blame HA. When I lived by myself, dinners consisted of a PB&J and a diet coke. Now, HA likes to have a full on dinner whenever we’re home. Sometimes we even have an appetizers. I eat so much more! So when my pants don’t fit anymore, I fully blame HA. :)

But to combat this, I’ve decided to start running. Urgh…I hate running but it’s a quick (or quickish) way to lose some weight. I decided it would do me well to post my goal up here so it’s out there for the world to see. I’m going to lose 15 pounds by July 15. Stay tuned people!

Travel Tip: Adelaide

Just a quick travel tip for any of you going to Adelaide, if you need to book a cab, be sure to give yourself an extra 30 minutes from the time that you actually want to be picked up.

Last summer...sorry, I mean "winter" for all you Aussie's...in July/August, I was traveling to Adelaide on a fairly regular basis. The one consistency was that the cab was ALWAYS 30 minutes late picking me up. So I quickly learned to book the cab for 4:30 and get downstairs at 5:00 and things would be just fine. I'd make it to the airport in plenty of time and no stress.

Oh, how quickly you forget. I was in Adelaide for work this week. Yesterday I go to book the cab and I do it for 5:00. Well, needless to say, around 5:15, I remembered that the cabs never show up on time. So I start stressing cause the cab company keeps saying that the cab is on it's way and it never shows. Finally around 5:30, the cab gets there. And of course, b/c it's so late, we've now hit traffic (mind you, "traffic" is relative). It took just over 30 min to get to the airport when it's normally a 15 min cab ride.

I had just enough time to buy a book and get on the plane. No Qantas club for me. :(

One last tip on Adelaide - I wouldn't suggest the Hotel Grand Chancellor on Hindley. While it was generally clean and near restaurants, it just needs alot of love. Half of the shower curtain holders were broken and the ones that were working, didn't even match. The vents were covered in dust and god knows what else. I just chose not to think about what might be in the carpet. It was certainly not what I would equate with a four star hotel. But if you're staying in Adelaide, I would suggest the Medina - it's an old historical building so it has lots of character and it's very nice.

F1 or NASCAR? You decide...

So one of the many things that I've been exposed to since I moved to Australia is Formula One racing. Each year in late March, Austalia hosts one of the races in Melbourne. It's a big deal and a major Australian event. So, of course, I felt it was my duty to attend.

I've been to a NASCAR race in Phoenix, and while it was very redneck, it was also a ton of fun. So, I thought maybe the F1 race would be similiar. So lets compare:

NASCAR - cars go in a circular lap
F1 - Cars drive a circuit which requires both left and right turns
Discuss: The level of difficulty is higher with F1 due to having to turn both ways

NASCAR - All fans get to sit in the stands and see the whole track
F1 - If you pay $600 for the weekend, you can get a sit in the stands and see the cars for the two seconds as they drive by
Discuss: In terms of a spector sport being watched in person, I believe that NASCAR wins hands down. While every seat may not be fabulous, you generally get to see a large portion of the track.

NASCAR - Non-race entertainment is generally limited to the shopping for souvenirs. At the Daytona 500, I think you can camp in the in field.
F1 - There are in field concerts on the day of the race
Discuss: Not sure which wins here as I thoroughly detest the type of music they were playing at the concerts at the F1.

So final decision - I vote NASCAR. Maybe it's the American in me but I truly believe that for an in-person sport, I believe that NASCAR provides better entertainment. I'm sure F1 has a higher degree of difficulty and there is more strategy, blah, blah, but if it's no fun to watch, then it means nothing.

6am Flights...Who thought that was a good idea?

We're in Brisbane visiting HA's family. It's only 8am. That means we were on the plane at 6:30 this morning. Which means I was awake at 4:45. And anyone that knows me very well knows that I don't do mornings well. Poor HA has had to deal with my crankiness.

And because I'm going to Adelaide Tuesday morning, I have two more of these ridiculous flights. Booo!

So many places, so little time...

Before I leave Australia, there are number of things I want to do.

1. Visit all the major cities
2. See "The Rock"
3. See something in the Opera House
4. Attend all the major Australian events
5. Go to New Zealand
6. See the Great Barrier Reef
7. Go on a wine tasting tour

So far, I've either done or scheduled most of these things. But there are still a few of these items outstanding. I'm now getting very close to the date they've set for me to go home. This time around, I don't anticipate that they'll extend me, or if they do, it won't be for long.

I've now gotten to a point where I need to decide what is really really important. So far, I've been to all the capitals with the exceptions of Darwin and Perth. I've spent time in Adelaide but it was for work, so I don't really count it. I haven't been to Uluru ("The Rock") or New Zealand or on a "good" wine tasting tour (Hobart doesn't really count).

How do you decide what's the most important to do when you've been given this amazing opportunity to live and work overseas? I feel like I've wasted my time - but at the same time, I've lived like an Australian rather than a tourist.

Now, do I risk the wrath of my boss and ask for lots of time off to finish out my list or do I prioritize them? And what about the money? Getting to these places won't be cheap.

I'd be open to any suggestions people might have!