So we trash it. Suits me personally financially right down to the ground. (Though I have strong 'philosophical' objections as previously stated.)
But anyway, to continue, we trash it and some highly leveraged types come under some stress, sell, prices decrease. And I buy. As a cashed up debt free landlord. Which I am.
Heck, it's even sounded 'good' to me in the past because I reckon that will purge the market of those 'bad, evil, highly leveraged types' - And replace them with the likes of nice low risk little ole me ...
Though the banks wouldn't be happy. Because they love borrowers. And I wouldn't be borrowing.
But what about the tenants I'll rent to - Will they be better off with dear ole debt free me as a landlord or the likes of a bad evil overleveraged 'specufestor' financed by the banks???
Well answering in all honesty, I'll really want my full kilo of flesh please (given we've gone metric ... )/return on my capital outlay. Whereas it is just possible that a neg geared dude who is being subsidised by his fellow tax payers and sort of sees a loss as not being such a big deal (NOT like I would anyway!) just could be a bit more charitably inclined?
Just doesn't seem that out of the question to me? - Looking at it as honestly as I can.
So we trash it. Suits me personally financially right down to the ground. (Though I have strong 'philosophical' objections as previously stated.)
But anyway, to continue, we trash it and some highly leveraged types come under some stress, sell, prices decrease. And I buy. As a cashed up debt free landlord. Which I am.
Heck, it's even sounded 'good' to me in the past because I reckon that will purge the market of those 'bad, evil, highly leveraged types' - And replace them with likes of nice low risk ole me ...
Though the banks wouldn't be happy. Because they love borrowers. And I wouldn't be borrowing.
But what about the tenants I'll rent to - Will they be better off with dear ole debt free me as a landlord or the likes of a bad evil overleveraged 'specufestor' financed by the banks???
Well answering in all honesty, I'll really want my full kilo of flesh please (given we've gone metric)/return on my capital outlay. Whereas it is just possible that a neg geared dude who is being subsidised by his fellow tax payers and sort of sees a loss as not being such a big deal (NOT like I would anyway!) just could be a bit more charitably inclined?
Just doesn't seem that out of the question to me? - Looking at it as honestly as I can.
Yep.
As I wrote last week.
1. Trash Ng, prices fall 2. Supply stops, subtracting 1-2% from gdp 3. Population keeps growing 4 rents rise (as does roce for landlords) 5 Rba cuts rates to stimulate 6 prices ,move back above replacement cost 7 bears find something else to winge about
Simple rule, people pay personal income tax. Their entire income is taxed collectively. Hence they can deduct costs from their entire income collectively. Interest payments are a tax deduction. It's been that way since the 1930's.
The main reason people invest in rental property is to preserve their savings from the devaluation of the currency. Without that devaluation the bubble would collapse. If the government did try to change NG then all people got to do is write themselves as a business like they do in the US and other countries.
If you want to end the asset bubble, go gold currency and the central banks are powerless!
In any case for this decade they are wasting their time, because there will be no net capital growth for the decade except perhaps in high end property.
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
Simple rule, people pay personal income tax. Their entire income is taxed collectively. Hence they can deduct costs from their entire income collectively. Interest payments are a tax deduction. It's been that way since the 1930's.
The main reason people invest in rental property is to preserve their savings from the devaluation of the currency. Without that devaluation the bubble would collapse. If the government did try to change NG then all people got to do is write themselves as a business like they do in the US and other countries.
If you want to end the asset bubble, go gold currency and the central banks are powerless!
In any case for this decade they are wasting their time, because there will be no net capital growth for the decade except perhaps in high end property.
So there are no asset bubbles with the gold standard?
So there are no asset bubbles with the gold standard?
Gold standard? Which one? There were asset bubbles under the gold standard, but not every asset as it is today and they only lasted so long because the demand for gold would pull the rug from out under them. The banks could create all the credit they like by issuing banknotes back then but then they got "called" on that credit, because their private banknotes were measured in the species currency!
The average residential property is only worth a fraction more in terms of gold that it was 20 years ago. Bugger all capital growth in gold!
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
Negative gearing should be completely abolished for housing.
Currently a high income individual or couple can buy property, rent it out and not care about losing money on the loan to rent difference, in a few years the property is worth more while they avoid paying income tax.
They will tell their friends how much money they are making on property & will tell the tax man how much they are losing on property to offset their income tax, it is a joke.
Gold standard? Which one? There were asset bubbles under the gold standard, but not every asset as it is today and they only lasted so long because the demand for gold would pull the rug from out under them. The banks could create all the credit they like by issuing banknotes back then but then they got "called" on that credit, because their private banknotes were measured in the species currency!
The average residential property is only worth a fraction more in terms of gold that it was 20 years ago. Bugger all capital growth in gold!
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