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.
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
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.
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.
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
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.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy