Inflated Accommodation Prices gone mad 2021 Season Jindabyne and Perisher

jabsy

Hard Yards
Oct 14, 2012
18
18
53
North Qld
Have you ever been to Copper Mountain? Skiing in the USA can be cheaper than you think, for those "in the know". ;)

Give Kiss Travel a call on 08 6142 8962, ask for David Andrews and quote referral code "NA Deals from ski.com.au". He'll greet you like a long lost friend and set you up with some fantastic deals on flights, accommodation and lift tix.
Many thanks for your help and the info. I will keep this and hopefully look at it next year. Again - Thank you.
 

MGS1968

First Runs
Jun 5, 2021
6
2
3
Oh just stop it already.....the prices are a rort!!! Anyone who even tries to justify them is an apologist and apathetic. Only in Aus...
 
  • Like
Reactions: jabsy

WaitAwhile

One of Us
Ski Pass
Apr 29, 2012
3,107
1,838
363
Perth/part time resident of Jindabyne
Oh just stop it already.....the prices are a rort!!! Anyone who even tries to justify them is an apologist and apathetic. Only in Aus...
Its all about supply and demand .
Take an investor or a person that wants to buy a holiday home, and also wants to rent it out as short term tourist accommodation
Why would you take out a huge loan and then spend the next 8-12 months building a property whilst paying for the loan when you can just buy an established property of any age and then start doing short term holiday lets, as soon as its settlement time
You still get the tax breaks like negative gearing, regardless of its age and usage, because your not actually adding to the housing stock level it helps to stop the market from becoming flooded with new builds..
Its also a stops many from building new hotels, motels, resorts and lodges, why would you ??? ,when you are trying to compete with other property owners that are legally allowed to run their "business" at a loss.
 
  • Like
Reactions: jrr

Tonester

Lift Line Nazi
Ski Pass
Jul 6, 2001
5,779
3,850
563
60
Sydney
And please, don't compare Jindy to Queenstown.

QT has a base population of 16000 to Jindys 3000. Even Cooma only has 7000.

So 5 times the size, it's own international airport, substantially larger all year round tourism base equals economies of scale.
And, I believe, a summer tourism trade much bigger than their winter tourism.
 

Ozgirl

Part of the Furniture
Ski Pass
Jul 5, 2007
15,804
18,288
813
Sydney/Jindy
A lot of these places are also subsidized by the Feds in the form of negative gearing , so people should be grateful that these rental properties are providing a service to the the local tourism market and thus making ski holidays more affordable
I'm sure if the borders are still closed next year , many owners will realign their prices in line with supply and demand.
um no. a lot of places in jindy need a very high deposit for a bank loan its hard to negative gear. As typically people borrow of their PPR to buy in jindy.
 
  • Like
Reactions: coolair

Marty McSly

A brick propping up the furniture
Ski Pass
Jul 12, 2011
13,840
1
22,716
863
Hunter Valley Whine Country, NSW
um no. a lot of places in jindy need a very high deposit for a bank loan its hard to negative gear. As typically people borrow of their PPR to buy in jindy.
But if you use the equity in your PPR and mortgage it, the LVR drops dramatically and it's possible to borrow 100% of the value of the Jindy property. Or maybe 106% as was common 30 years ago to fund legals and stamp duty with borrowed funds.
 
  • Like
Reactions: nezumi

Ozgirl

Part of the Furniture
Ski Pass
Jul 5, 2007
15,804
18,288
813
Sydney/Jindy
But if you use the equity in your PPR and mortgage it, the LVR drops dramatically and it's possible to borrow 100% of the value of the Jindy property. Or maybe 106% as was common 30 years ago to fund legals and stamp duty with borrowed funds.
Nope wasnt allowed.

Fully paid off home in sydney. Was forced to get 2 mortgages - didnt want the risk all over a holiday property.
 
  • Like
Reactions: coolair

nezumi

One of Us
Ski Pass
May 28, 2009
2,217
3,212
363
Melbourne
2 mortgages over what?

At a guess - one mortgage over PPR for a minimum of 20% of Jindy property value, one mortgage over Jindy property for the balance. Prevents cross collateralisation of the loans and limits the liability against the PPR.
 
Remove ads with a
Ski Pass

Ozgirl

Part of the Furniture
Ski Pass
Jul 5, 2007
15,804
18,288
813
Sydney/Jindy
At a guess - one mortgage over PPR for a minimum of 20% of Jindy property value, one mortgage over Jindy property for the balance. Prevents cross collateralisation of the loans and limits the liability against the PPR.
NO, needed to be 50 % of IP value.

Thats what I said above. That the chances of people negative gearing in jindy is on the low side.
 

nezumi

One of Us
Ski Pass
May 28, 2009
2,217
3,212
363
Melbourne
NO, needed to be 50 % of IP value.

Thats what I said above. That the chances of people negative gearing in jindy is on the low side.

I didn't see any reference to 50% - what I said was a minimum of 20% of the Jindy property value. If the bank is confident that the property in Jindabyne will sell for at least 80% of the loan value in the event of a forced sale, then that's the condition they might impose. If they feel that the area is more overpriced, then they'll go more, but I was correct.

It's also still easy to be negatively geared. In that scenario the loan against the PPR for investment purposes is still deductible, so if you are borrowing 50% of the value against the target property and 50% against the PPR, it's still a 100% loan of the purchase price, fully deductible.

Hell, even if you only borrow 50% of the property value, but primarily use it for private purposes and only rent it out for 6 weeks over the winter season, that's still negative gearing.
 
  • Like
Reactions: NightSky

WaitAwhile

One of Us
Ski Pass
Apr 29, 2012
3,107
1,838
363
Perth/part time resident of Jindabyne
But if you use the equity in your PPR and mortgage it, the LVR drops dramatically and it's possible to borrow 100% of the value of the Jindy property. Or maybe 106% as was common 30 years ago to fund legals and stamp duty with borrowed funds.
Yeah that sounds about right , the banks were still doing it 11 years ago , we didn't put in a cent , legals and stamp duty just thrown in , and we used it on average 6-8 weeks our self during the 2nd half of the season.
The market is just going bonkers at the moment.
This is a property(or its neighbour) in Berridale that we also inspected around 2009 and was about 110k, give or take a few k.
Just sold for 358k.
All the growth is in the last few years.
 

Marty McSly

A brick propping up the furniture
Ski Pass
Jul 12, 2011
13,840
1
22,716
863
Hunter Valley Whine Country, NSW
Not my money.

but I thought they closed that loop hole.
What loophole?

The tax deductibility of the interest on a loan is determined by the purpose of the loan, not the assets mortgaged to secure the loan. It's the law.

That is to say, if you borrow 100% of the cost of a dwelling in Jindabyne to rent out 100% of the time, you can claim 100% of the interest expense as a deduction against the rental. If you use it 20% of the time, you can claim 80% of the interest (and other costs). Whether you mortgage your PPR or not is irrelevant. The purpose of the loan is to finance the Jindabyne property. The security behind the loan is of no interest to the ATO, only the bank. General commentary only, not advice of course.
 

nezumi

One of Us
Ski Pass
May 28, 2009
2,217
3,212
363
Melbourne
What loophole?

The tax deductibility of the interest on a loan is determined by the purpose of the loan, not the assets mortgaged to secure the loan. It's the law.

That is to say, if you borrow 100% of the cost of a dwelling in Jindabyne to rent out 100% of the time, you can claim 100% of the interest expense as a deduction against the rental. If you use it 20% of the time, you can claim 80% of the interest (and other costs). Whether you mortgage your PPR or not is irrelevant. The purpose of the loan is to finance the Jindabyne property. The security behind the loan is of no interest to the ATO, only the bank. General commentary only, not advice of course.

The remaining 20% interest can be added to the cost base when determining the net capital gain at the time of sale, however.
 
  • Like
Reactions: Marty McSly

MattyHoll

One of Us
Aug 17, 2016
396
851
263
um no. a lot of places in jindy need a very high deposit for a bank loan its hard to negative gear. As typically people borrow of their PPR to buy in jindy.
Especially those that are managed apartments.

On another note, we have a bed at Adaminaby for 1k a night? any takers? I'll even drop you at at the ski tube and provide cereal for breakfast. If you're lucky, wax and edge your skis? Sounds more like a bargain by the minute doesn't it...
 
  • Like
Reactions: Myazma and malas1

MattyHoll

One of Us
Aug 17, 2016
396
851
263
Yeah that sounds about right , the banks were still doing it 11 years ago , we didn't put in a cent , legals and stamp duty just thrown in , and we used it on average 6-8 weeks our self during the 2nd half of the season.
The market is just going bonkers at the moment.
This is a property(or its neighbour) in Berridale that we also inspected around 2009 and was about 110k, give or take a few k.
Just sold for 358k.
All the growth is in the last few years.
I remember looking at two units in Berridale in 2017, that were priced around the 120 - 130 mark. And we made an offer, but were screwed around with a real estate agent I wont mention, but i'm sure some can guess. Wasn't a brilliant unit and needed a lot of work, but would be a steal for the price things are now. From our experience we've seen properties double in price, if not more since then. For what ever reasons? Covid, snowy 2.0? Who knows.
 

Me+3

One of Us
Jun 26, 2014
307
361
163
prices not so inflated now are they.....
deals to be had at a fair few places on and off mountain at the moment.
 
  • Like
Reactions: NightSky
Remove ads with a
Ski Pass

Log in

or Log in using
Remove ads with a
Ski Pass