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The future of Australian property prices

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Value Collector said:
They would have purchased it from a developer, who will then go and build another apartment, because that’s what they do.

If the bank saves money by firing staff, they will pay more tax and pay higher dividends.
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So they aren't creating employment - which goes to my original point.

If taxpayers have to fund a gravy train of debt servicing I'd rather it be for small business which benefits communities around the country as opposed to a handful of inner city developers and latte sipping high income earners
 

I don’t think NG was set up for rich people flipping houses in Sydney’s east
Should of been capped years ago where it might encourage people to invest in affordable rentals
 
Humid said:
I don’t think NG was set up for rich people flipping houses in Sydney’s east
Should of been capped years ago where it might encourage people to invest in affordable rentals
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Agree 100%, my post from Feb 2014 #11247.

If that were the case, losses of a capital nature would be able to offset against income, at present they can only be carried forward against a capital gain.
This is because the investment is seen as speculative.
Can't the same be said of an interest only loan against a property, where the purchase was to get capital appreciation.
Why should the taxpayer have to pay the speculator the shortfall in their earnings, they took the loan on with the knowledge, it is unlikely to ever be rent possitive.
They should only be able to mitigate their losses upto the income they recieve from the investment.
To allow them to claim a tax refund for losses above that, just encourages speculation/gambling losses to be a tax deduction.

The problem I see now, is that the problem has been left too long and has become too big, to rectify it in one foul swoop could cause more issues than it solves.
I think a gradual approach, in stages over period of a few years, would be a much better approach. Just my opinion, and we have already seen not many agree with it.
 
As any instable system, a butterfly on the other side of thevplanet, in the most unexpected time and place will pop the balloon.
But we know of the ballon, of the popping effects so lets be ready..
Been trying to sell a warehouse for 15months and still on the market regardless of price
 
Here in my area, South of Perth, a lot of stock going onto the market.
 
I see a headline in the Australian, says Shorten may 'wait and see' about the changes to negative gearing, untill after the next election.
Maybe even he has realised how stupid, what he is suggesting, would be.
 
Not in Tasmania

According to this Perth’s median house price is around 5% higher above $500K which is around 6 times the average wage which is still high but obviously better than Sydney/Melbourne.

I remember housing in Sydney/Melbourne was around 7 times the wage in 2007 when the election was debated on housing affordability.
 
PZ99 said:
Not in Tasmania
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Tasmania, top spot, we spent 4 weeks travelling around a couple of years ago.
I guess a lot of Melbourne retirees, are cashing in and moving down there, seems like a great idea to me.

Well I would never have guessed Perth has gone up, hopefully that was the bottom, but I wouldn't put money on it.
 
Fundamentaly good but for most household involved the loss of potentially decades of saving worths can not help the economy, nor will the reduction of demand and tradies out of jobs
What is left? Mining to a China which do not need our stuff?
 
qldfrog said:
Fundamentaly good but for most household involved the loss of potentially decades of saving worths can not help the economy, nor will the reduction of demand and tradies out of jobs
What is left? Mining to a China which do not need our stuff?
Click to expand...
This is exactly what I was talking about a while ago.
The lowering of Australian house prices is critical, that people will be hurt, is unavoidable.
The only thing that can reduce the pain and economical impact, is by deflating prices as slowly as possible, but having said that everyone except you and smurph bagged me for suggesting that.
So it obviously doesn't worry most ASF members, and if they represent the feeling of the majority of Australians, I think we are in for one hell of a shock.
 
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