I may not like the subsidy and yeah, unfortunately it has hindered my chances of ownership, but in its entirety it has been extremely successful in building wealth for individuals and the nation.
It is now working with FI to to keep us above the red line, we would be in recession now without property.
It then bewilders me that countries like the US and UK don't abandoned there investment schemes for middle and high income earners and take on a carbon copy of ours. I'm not being a smart arse I'm actually agreeing with the benefits of the system, there is collateral damage but given 70% of adults in this country own their own homes and millions have more than one then that damage is justifiable.
Why in the hell wouldn't the rest of the world, especially nations like the US who have relatively high wages but are floundering, adopt this approach?
It only works when prices are rising, usually along with wages and rents. But when prices are falling, it is a complete failure, especailly when many havenlost their job they were claiming losses against.
The other problem is, it becomes a severe burden on the economy with so many now claiming losses.
Its one of the very things that have pushed prices higher than the US, along with the encouragement of superfund leverage. Its why our market is more unstable than theirs , more unsustainable than theirs, and why prices could fall much further and why people may lose a lot more as decline sets in.
In the US you can tax deduct the interest on your PPOR loan.
I know, did you miss the part where I said they should abandon their 'current' subsidies.
Claiming interest in a PPOR loan is nothing like NG.
No other country in the world has an investment subsidy base like ours, it effectively rewards you heavily for buying and creates greater and greater generational wealth. The US system was by in large parasitical and tried to build wealth for a small minority off the poorer majority who were less likely to afford the debt in the future. NG concentrates on wealthy or upper middle class, they in turn upgrade, renovate, refurbish their homes, buy cars, eat in restaurants regularly etc. they spend on consumables which then builds the relative wealth of this employed to service these service and hospitality sectors.
Australian rents have remained quite affordable even though house prices have exploded. To date it has been infalable, I am miffed as to why more nations don't get into it.
I may not like the subsidy and yeah, unfortunately it has hindered my chances of ownership, but in its entirety it has been extremely successful in building wealth for individuals and the nation.
It is now working with FI to to keep us above the red line, we would be in recession now without property.
It then bewilders me that countries like the US and UK don't abandoned there investment schemes for middle and high income earners and take on a carbon copy of ours. I'm not being a smart arse I'm actually agreeing with the benefits of the system, there is collateral damage but given 70% of adults in this country own their own homes and millions have more than one then that damage is justifiable.
Why in the hell wouldn't the rest of the world, especially nations like the US who have relatively high wages but are floundering, adopt this approach?
Tulip bulbs peaked and crashed over a 12 month period, in the 1600's, hardly a realistic comparison to a system that has boomed over two decades and weathered massive capital crunches that crippled most other developed nations globally.
Tulip bulbs peaked and crashed over a 12 month period, in the 1600's, hardly a realistic comparison to a system that has boomed over two decades and weathered massive capital crunches that crippled most other developed nations globally.
Chris - take a deep breath.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
I may not like the subsidy and yeah, unfortunately it has hindered my chances of ownership, but in its entirety it has been extremely successful in building wealth for individuals and the nation.
It is now working with FI to to keep us above the red line, we would be in recession now without property.
It then bewilders me that countries like the US and UK don't abandoned there investment schemes for middle and high income earners and take on a carbon copy of ours. I'm not being a smart arse I'm actually agreeing with the benefits of the system, there is collateral damage but given 70% of adults in this country own their own homes and millions have more than one then that damage is justifiable.
Why in the hell wouldn't the rest of the world, especially nations like the US who have relatively high wages but are floundering, adopt this approach?
Why not simply minimize income taxes and let market prices take care of govt services?
I may not like the subsidy and yeah, unfortunately it has hindered my chances of ownership, but in its entirety it has been extremely successful in building wealth for individuals and the nation.
It is now working with FI to to keep us above the red line, we would be in recession now without property.
It then bewilders me that countries like the US and UK don't abandoned there investment schemes for middle and high income earners and take on a carbon copy of ours. I'm not being a smart arse I'm actually agreeing with the benefits of the system, there is collateral damage but given 70% of adults in this country own their own homes and millions have more than one then that damage is justifiable.
Why in the hell wouldn't the rest of the world, especially nations like the US who have relatively high wages but are floundering, adopt this approach?
Why would you want to subsidise a loss making industry,it just breeds inefficiency.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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