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Could Australian Real Estate survive NGs removal?
No, the industry in completely reliant on government subsidy 5 (20%)
0 (0%)
Not at its current inflated levels, prices would drop significantly first 6 (24%)
2 (8%)
Yes, but enter a period of price stagnation. 5 (20%)
3 (12%)
Yes, the industry would do better then it does now 4 (16%)
Total Votes: 25
Could Australian Real Estate survive NGs removal.; Polling opinions around whether NGs removal will kill the RE industry
Topic Started: 18 Sep 2013, 05:52 AM (7,506 Views)
Timo
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Could it be done?
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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doubleview
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Timo
18 Sep 2013, 05:52 AM
Could it be done?
while their at it take the interest only loans out of the system.
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peter fraser
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doubleview
18 Sep 2013, 08:32 AM
while their at it take the interest only loans out of the system.
The problem isn't interest only loans, or negative gearing, or anything else that Timo and Co rave on about.

The problem is supply. The lack of supply is caused by a mix of developer contributions, GST, planning obstacles designed to make any developments difficult and hand power to the objectors who don't want any changes in their area.

Why do you guys pick on quite minor issues and constantly ignore the real problem. It's just bizarre.
Any expressed market opinion is my own and is not to be taken as financial advice
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doubleview
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peter fraser
18 Sep 2013, 09:11 AM
The problem isn't interest only loans, or negative gearing, or anything else that Timo and Co rave on about.

The problem is supply. The lack of supply is caused by a mix of developer contributions, GST, planning obstacles designed to make any developments difficult and hand power to the objectors who don't want any changes in their area.

Why do you guys pick on quite minor issues and constantly ignore the real problem. It's just bizarre.
Yes Supply!! I agree but I thought that went with out saying!

As far as NG & interest only loans go, It pisses people off.

Its the fact that young families have to compete with this.
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b_b
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Removing NG from investment properties will have the same effect as removing NG from sharemarket investments.

Zero.

The issue is and always will be the cost of production. Removing NG would do nothing to reduce the cost of production.
(S – I) + (T - G) + (M - X) = 0
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peter fraser
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doubleview
18 Sep 2013, 09:29 AM
Yes Supply!! I agree but I thought that went with out saying!

As far as NG & interest only loans go, It pisses people off.

Its the fact that young families have to compete with this.
To use a cliché "If you can't beat them join them"

If a young couple have two decent wages could they not buy a house and rent that out to get the NG benefits themselves while someone else pays the house off for them.

They could also buy a house in the name of a family trust and rent it to themselves, and get all of the tax benefits such as NG and tax deductions on rates, depreciation etc.

I'm sure that isn't what you want, but when things aren't working out the way you want them to, it's time to put every option on the table. the negative is that you will pay tax on 50% of the capital gain when you sell.

NG just brings forward the tax benefits. It reduces your tax which gives you a greater disposable income. You can lodge a declaration with your employer to reduce the tax taken out of your salary, or you can get it when you lodge your tax return. I forget exactly which form is used but someone here will know it.

Anyway that's just something to consider. PPOR owners can get exactly the same benefits as investors if they want to.
Edited by peter fraser, 18 Sep 2013, 09:54 AM.
Any expressed market opinion is my own and is not to be taken as financial advice
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doubleview
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peter fraser
18 Sep 2013, 09:52 AM
the negative is that you will pay tax on 50% of the capital gain when you sell.

A pretty big negative don't you think?
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peter fraser
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doubleview
18 Sep 2013, 10:05 AM
A pretty big negative don't you think?
Well that's the negative that investors face when they sell.

Look on the positive side. You may not make a capital gain so you won't need to be concerned with the tax.

OTOH you will have received definite tax benefits for the period that you owned the house. I used to have a bookkeeper client who always bought his homes that way. He figured that he was better off, but I've never done the math so I'm not sure. But in the end, if prices do rise considerably, getting 50% tax free and paying the marginal rate on the other 50% is better than not getting anything.

If I was in Sydney and thought that the prices were beyond me, I would probably look for other areas that had some upside because they had taken a hit, and I would buy an investment property there that could perhaps be sold later and the gains used to buy where I really wanted to live. Look it's just a thought. You have to do what you think is best for you.

Any expressed market opinion is my own and is not to be taken as financial advice
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themoops
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Removing NG would crash it to the shit house almost overnight. 50-70% drops. Because there's 1.7 million people using it and it's one of the main "incentives" for property "investment".

Because it's all so precarious now, unlike when Keating removed it.
stinkbug omosessuale


Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments.
Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck!
See here
Property will be 50-70% off by 2016.
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stinkbug
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doubleview
18 Sep 2013, 10:05 AM
A pretty big negative don't you think?
The bears are the ones carrying on about housing not being an investment. Why should it matter if any gain is taxed?
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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