"Low interest rates and an appetite for investing, brought on by favourable tax treatment for property investors, has only added fuel to the fire of an already tight supply and demand situation. The government should start with the recommendations of their own report: fixing supply constraints, stamp duty and tax arrangements. First and foremost, housing should be used as a shelter." http://www.domain.com.au/news/time-to-stop-blaming-foreign-buyers-for-high-house-prices-20150827-gj6wn6/
"Domain Group's Andrew Wilson calculated that entry-level house prices of about $500,000 are expected to grow 10 per cent over the next 12 months." Dear me Doc, you are really not the bearing of good news....
Simples... 1. Phase out NG 2. Full CGT on all property sold under 10 years (exemption for work or babies reasons etc) After 10 years, zero CGT for all. 3. Land tax of 0.75% on all property and abolish Stamps. 4. Stop SMSF's buying residential property with any gearing.
"Australia’s rising house prices are restricting access to credit for small businesses and stifling young Australian entrepreneurs, a new report released by the Reserve Bank of Australia has suggested." http://www.brokernews.com.au/news/breaking-news/rising-house-prices-are-hurting-sme-lending-report-suggests-204770.aspx "Reserve Bank says it's investors pushing up house prices" http://www.smh.com.au/business/banking-and-finance/reserve-bank-says-its-investors-pushing-up-house-prices-20150806-gisq8b.html "The latest figures show investors borrowed 52.5 per cent of the money lent for housing in May, leaving less than half for owner-occupiers. Owner occupiers borrowed $11.8 billion (excluding refinancing). Investors borrowed $13 billion. Dr Ellis said the investor boom was being fed by both very low interest rates and the prospect of concessionally taxed capital gains. Since late 1999, only half of each capital gain has been taxed, making negative gearing much more attractive. Investors are allowed to write off all of any losses they make renting properties against their wage incomes, while paying tax on only half of each capital gain they make when selling those properties. A Parliamentary Budget Office analysis prepared for the Greens finds that limiting negative gearing to properties already purchased and trimming the discount on capital gains tax from 50 per cent to 40 per cent would save the budget $9 billion over four years, with the saving rising over time. The Business Council of Australia, accounting firm KPMG, former banker David Murray and the head of the government's audit commission, Tony Shepherd, have all come out in favour of a review of the capital gains tax discount. Dr Ellis stressed that the RBA was not suggesting getting rid of negative gearing, but wanted it examined in the context of a review of the capital gains tax discount. She said the United Kingdom and the United States allowed investors to deduct interest expenses against their property income but not their wage income. Corporations could deduct interest expenses only against their business income, but individuals who ran what was in effect a business renting out properties were allowed to deduct their expenses against their pay cheques from other employers."
Just can't resist the opportunity to social-engineer, can you pauk? That's why you'll always be a "cross-bencher", mostly left on the sidelines in life's great political debates.
The latest figures show investors borrowed 52.5 per cent of the money lent for housing in May, leaving less than half for owner-occupiers.
That statement was made by Peter Martin, the article author, not Pauk.
As such it reveals either Peter Martin's financial illiteracy or more likely Peter Martin's lying intent to deceive his target doomer readers.
Martin's use of the word "leaving" is a deliberate attempt to imply that there exists only a fixed amount of credit available for house purchase and that all investors have first call on that credit over all owner occupiers. Both insinuations are complete bollocks. The days of building society structures where credit was limited to deposits disappeared eons ago. There exists absolutely no restriction of available credit for credit worthy owner occupiers in the modern world.
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