Firstly, there's very very little chance of any politician removing NGing. Clive Palmer has as much chance of becoming PM as NGing being removed.
But let's say it was...
It is likely to be removed in the same, or similar way to when it was removed in 1985, it will likely be grandfathered and quarantined. Such changes will mean any downward pressure on prices and upward pressure on rents will be gradual.
The bears are the ones carrying on about housing not being an investment. Why should it matter if any gain is taxed?
I don't think bears are carrying on at all !
Most bulls are leveraged and rely on the following generations to keep buying!
Anything that doesn't follow this bluprint is seen as carrying on !
zaph
18 Sep 2013, 12:25 PM
Firstly, there's very very little chance of any politician removing NGing. Clive Palmer has as much chance of becoming PM as NGing being removed.
But let's say it was...
It is likely to be removed in the same, or similar way to when it was removed in 1985, it will likely be grandfathered and quarantined. Such changes will mean any downward pressure on prices and upward pressure on rents will be gradual.
yep Its dominantly going to be with us for a fair while!
Perhaps it will be removed when we get gen y in charge, which is a long way off
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.
Not this again Peter!
Its both. Always has been.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Chin up Timo, maybe you could look at investing in a tent....
Chop off the old block, duhling.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
The Henry Review recommended the introduction of a SID, designed to offer a balanced tax treatment of rental income and capital gains while curbing some of the tax shelter benefits provided by negative gearing. Instead of including 100 per cent of net income from property investments in assessable income, the investor would report 60 per cent as assessable income. At present 50 per cent of capital gains are taxed; under the reform, 60 per cent will be taxed so the application of the SID on capital gains tax would reduce incentives to ‘chase’ capital gains.
Negatively geared investors are adversely affected by the SID reforms, with their average after-tax economic cost (as a percentage of property value) rising from 8.0 to 8.5 per cent. However, the average after-tax economic cost for equity investors (i.e. those not negatively geared) falls from 8.0 to 7.5 per cent. The modelling shows that these lower costs for equity investors would result in a long-term decrease in average rents of 3.5 per cent (or $300) annually, all other factors being equal.In absolute terms, this reduction in housing costs is greatest for tenants in the more expensive segments of the private rental market (where tenants typically have higher incomes); whereas the effects on housing affordability ratios (HARs) and rates of housing affordability stress (HAS) are more modest. In the more affordable segments this translates into a $285 reduction in housing costs annually.
The concern that investors are likely to leave the market due to the proposed reforms is likely to be unfounded. Unleveraged and equity oriented investors are more inclined to retain investments under the SID reforms, while negatively geared investors are likely to realise their investments. A ‘flight of investors’ from private rental housing would not occur as these supply responses would offset each other.However, it must be noted that any contraction in the supply of rental housing would only occur if existing rental investors sell their properties to non-investors, that is owner occupiers. If existing rental investors sell their properties to other investors, the impacts of SID will be reflected in reduced prices paid by those new investors.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Perhaps it will be removed when we get gen y in charge, which is a long way off
The thing is by the time Gen Y get in power it'll be like now
Gen X will be seen as the greedy boomer equivalent There'll be plenty of Gen Y with their finger in the pie as well and it'll be Gen Z shrieking from the rooftops at the fortunes of Gen X and Y and how they had it so easy. Shoulda seen the bargains those dislikeable persons picked up in 2013 they'll say, if only we had a time machine to go back they'll cry
Ignore posts by The Whole Truth · View Post · End Ignoring The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
The thing is by the time Gen Y get in power it'll be like now
Gen X will be seen as the greedy boomer equivalent There'll be plenty of Gen Y with their finger in the pie as well and it'll be Gen Z shrieking from the rooftops at the fortunes of Gen X and Y and how they had it so easy. Shoulda seen the bargains those dislikeable persons picked up in 2013 they'll say, if only we had a time machine to go back they'll cry
The big whinge kids of today will have is that Gen Y grew up during the most prosperous years Australia has ever seen, yet didn't seem to do any better than any other generation.
The big whinge kids of today will have is that Gen Y grew up during the most prosperous years Australia has ever seen, yet didn't seem to do any better than any other generation.
I dunno, I think everyone will still just hate boomers for a long time. You just can't beat the price to income ratio they had. Add to that they mostly left school at 15 and were trained, as opposed to needing a degree to simply get a shitty entry level job as is often the case these days. Add to that many other advantages, like not having to travel a fucking hour to simply get to work.
I don't think many people feel much affinity with boomers. They are so more gen y than gen y and it's written all over them. They have been exposed over the last few years, they tried to pin the blame for the world's problems on gen y, but it's backfired. They have been the main offenders to oversee and cheer on the property boom.
When they are gone I think we'll see more solidarity amongst people. Unfortunately I will be old by then and won't get to enjoy that.
They have been a terrible generation in their old age. The sooner they're gone the better. I feel a bit sorry for the good ones out there, those that are geniunely left or at least have leftist tendencies where it's important like with housing and are not chardonnay socialist scum.
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.
I dunno, I think everyone will still just hate boomers for a long time. You just can't beat the price to income ratio they had. Add to that they mostly left school at 15 and were trained, as opposed to needing a degree to simply get a shitty entry level job as is often the case these days. Add to that many other advantages, like not having to travel a fucking hour to simply get to work.
Fair points moops, but don't forget that their standard of living was a long way below what we enjoy today. There are plenty of boomers who have stuff all despite working hard in working class jobs their whole life.
A few have done very well though. Of course, a few from every generation do well.
I dunno, I think everyone will still just hate boomers for a long time. You just can't beat the price to income ratio they had. Add to that they mostly left school at 15 and were trained, as opposed to needing a degree to simply get a shitty entry level job as is often the case these days. Add to that many other advantages, like not having to travel a fucking hour to simply get to work.
I don't think many people feel much affinity with boomers. They are so more gen y than gen y and it's written all over them. They have been exposed over the last few years, they tried to pin the blame for the world's problems on gen y, but it's backfired. They have been the main offenders to oversee and cheer on the property boom.
When they are gone I think we'll see more solidarity amongst people. Unfortunately I will be old by then and won't get to enjoy that.
They have been a terrible generation in their old age. The sooner they're gone the better. I feel a bit sorry for the good ones out there, those that are geniunely left or at least have leftist tendencies where it's important like with housing and are not chardonnay socialist scum.
why don't you wash the sand out of your vagina?
I am the love child of Tony Abbott and Pauline Hanson
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