Australian Property is so far out of wack to wages it must crumble eventually , if the government was serious they would remove negative gearing, problem solved, housing now affordable, supply increases due to the exit of the rich no longer having a tax dodge & gen x onwards could afford to buy rather than pay astronomical rents.
Plus it would remove the banks from supplying money to a loss making enterprise funded by the taxpayer, than people could buy a home, less demand lower interest rates
in review get rid of tax breaks, stop funding loss making enterprises at the expense of the tax payer, property prices drop everyone can afford a home, my property can halve in value i don't care its my home .
i invest i things that are real & have a value, property does not
Sorry, l disagree with the above statement. Removing negative gearing will have investors (developers) drop out of the market and future property developments will slow down, thus pushing property prices higher while the population increases.
Phase the change over 10 years with staggering amounts.
This would allow transition, and prevent crashes, give tradies time to adjust to more appropriate wages (compared to the rest of society) and builders and developers to return to historical margins, and councils to allow inflation to return land valuations to normal.
More affordable and transparent real estate for all... oh, plus legislate that RE must report de-identified statistics to improve it as well, then we won't have pathetic, tainted REIV results.. could you imagine if BHP could report only its highest 50% trades per week, and hide the true shareprice.
MW
Just remove negative gearing and CGT exemptions. Why should rich investors get tax exemptions ?
I mean this is just socialism for the rich. What next ? CEO tax exemption ? Earn more than 1 million dollars a year and pay only 5% marginal tax ?
The 6 billion pumped into negative gearing should be put into public housing for WORKING people. i.e you don't get a place for being a drug addict. You get offered a place because you're next on the waiting list, earn less than a certain amount and you agree to pay 85% of market rent.
Would do wonders for the economy in general
Also sell them as PPOR ONLY !
I can't argue with this (nor removal of negative gearing for all investments).
But no government would ever survive an election with either of our proposals, hence the problem with the way our govt system operates, and how China can move appropriately and we cannot.
If the ALP did this it would be about the only chance they would have of winning the next election in a landslide victory.
Think about it, lovers of negative gearing and tax breaks for the rich, well they vote liberal anyway...
If nothing else they'd win back thousands of disillusioned youth and younger people and alienate only the far right voter.
Even I would vote Labor if they did this.... except then the $6 billion saved would go to subsidise earwax potato farming to solve the global food crisis, or some other stupid idea.
Yeah because scientists just made global warming up to get extra funding right ?
If the ALP did this it would be about the only chance they would have of winning the next election in a landslide victory.
Think about it, lovers of negative gearing and tax breaks for the rich, well they vote liberal anyway...
If nothing else they'd win back thousands of disillusioned youth and younger people and alienate only the far right voter.
I've long suspected that it has more to do with fossil fuel depletion than any sort of funding conspiracy or new world order type stuff.Yeah because scientists just made global warming up to get extra funding right ?
I've long suspected that it has more to do with fossil fuel depletion than any sort of funding conspiracy or new world order type stuff.
Li, a software engineer, closed on a $250,000, three-bedroom apartment in August, only to watch weeks later as the developer slashed prices 25% on identical units to attract buyers in a slowing market. Outraged, Li and hundreds of others who paid full price trashed the sales office, scuffled with employees and protested for three days before police broke up the demonstration. Walking away now would mean losing the $75,000 down payment that he borrowed from his working-class parents.
"I still haven't told them," Li, 29, said of his home's plummeting value. "It will just make them worry, and it's already too late.
"The sales agent told me prices wouldn't go down, that I was getting the best deal," he said. Li plans on marrying his girlfriend this time next year, when the apartment is scheduled to be finished. He'll have to devote half of his $1,500 monthly salary to pay the mortgage.
Li said he hasn't worked up the nerve to tell his parents how much his apartment has fallen in value ”” not after they lent him their life savings for the down payment.
Here's the part I don't get with these situations.
One day he felt good about the purchase and his future getting married to his girlfriend and moving into the house, life's good.
Then when he gets told the value of the home has dropped by 25%, he freaks out and acts like the world is ending,
He should just contiune on with his plans, buy the house work and pay back his parents and enjoy life.
It's one thing for the open/auction market to fall, but quite another for the developer to give assurances that the sale price would not go lower... and weeks later lower it by 25%.
I don't know what the law is, or more importantly what laws are actually enforced in China, but there are clear laws in the west (Aus at least) that would give him a case for suing the developer to recover the subsequent 25% discount.
That's a very substantial discount and utterences like that, if not kept, are a clear breech of contract in Aus.
It's one thing for the open/auction market to fall, but quite another for the developer to give assurances that the sale price would not go lower... and weeks later lower it by 25%.
I don't know what the law is, or more importantly what laws are actually enforced in China, but there are clear laws in the west (Aus at least) that would give him a case for suing the developer to recover the subsequent 25% discount.
That's a very substantial discount and utterences like that, if not kept, are a clear breech of contract in Aus.
Here's the part I don't get with these situations.
One day he felt good about the purchase and his future getting married to his girlfriend and moving into the house, life's good.
Then when he gets told the value of the home has dropped by 25%, he freaks out and acts like the world is ending,
He should just contiune on with his plans, buy the house work and pay back his parents and enjoy life.
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