I'm not into trashing neg gearing - Simply think the general principle of being able to offset losses against income for tax purposes is TOO important to trash in the hope of achieving a specific end - A bit like the concept of 'free speech'?
I'm not into high land tax - Why the ferk would ANY sane person willingly vote to pay lottsa loot to gov year after year endlessly for the privilege of living on a bit of dirt they bought 'n paid for years ago?
I'm not into seeing central banks fiddle interest rates - Their track record is simply TOO bad!
But the basic prob (to me) seems to be the boom/bust potential that comes from speculative investor types operating with/using borrowed money - So limit THAT is my thought? ... Severely.
I'm not into trashing neg gearing - Simply think the general principle of being able to offset losses against income for tax purposes is TOO important to trash in the hope of achieving a specific end - A bit like the concept of 'free speech'?
I'm not into high land tax - Why the ferk would ANY sane person willingly vote to pay lottsa loot to gov year after year endlessly for the privilege of living on a bit of dirt they bought 'n paid for years ago?
I'm not into seeing central banks fiddle interest rates - Their track record is simply TOO bad!
But the basic prob (to me) seems to be the boom/bust potential that comes from speculative investor types operating with/using borrowed money - So limit THAT is my thought? ... Severely.
What LVR would you suggest?
Any expressed market opinion is my own and is not to be taken as financial advice
I'm not into trashing neg gearing - Simply think the general principle of being able to offset losses against income for tax purposes is TOO important to trash in the hope of achieving a specific end - A bit like the concept of 'free speech'?
I'm not into high land tax - Why the ferk would ANY sane person willingly vote to pay lottsa loot to gov year after year endlessly for the privilege of living on a bit of dirt they bought 'n paid for years ago?
I'm not into seeing central banks fiddle interest rates - Their track record is simply TOO bad!
But the basic prob (to me) seems to be the boom/bust potential that comes from speculative investor types operating with/using borrowed money - So limit THAT is my thought? ... Severely.
Yes, But remember. It is cheaper than the government providing the housing for the poor. This whole system allows the government to provide housing to the poor through contractors. The private investor. Peter :pop:
No idea really Peter - That stuff is way more your bag than mine of course.
But if one wanted to maybe ensure prices pretty much ticked along with inflation (plus earing their yearly rent as income) - Which as a non-speculative type, I'd not see as a bad result at all, what would you suggest? 20%, 50%, or 80% ? - I'm open to suggestions?
foxbat101
10 Oct 2013, 07:51 PM
Yes, But remember. It is cheaper than the government providing the housing for the poor. This whole system allows the government to provide housing to the poor through contractors. The private investor. Peter :pop:
Get the balance right and you'll get the same end result of non-gov entities 'providing houses to the poor' without the boom/bust potential.
But the basic prob (to me) seems to be the boom/bust potential that comes from speculative investor types operating with/using borrowed money - So limit THAT is my thought? ... Severely.
I have my doubts that NG or no NG will have much impact on flippers. They would intend to hold for a short time and make a quick buck.
Similarly, we've seen in the past that once asset bubbles form, raising interest rates doesn't seem to work. Who cares what the rate is if you think you can turn 30% profit over the next year or two?
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
I have my doubts that NG or no NG will have much impact on flippers. They would intend to hold for a short time and make a quick buck.
Similarly, we've seen in the past that once asset bubbles form, raising interest rates doesn't seem to work. Who cares what the rate is if you think you can turn 30% profit over the next year or two?
We have at that MIW - CB interest rates are 'a blunt tool' at best I've read.
Suppose they could be 'sharpened' - Made specific to asset classes? George Soros suggested that. But the powers that be have shown no interest in it to date that I'm aware of?
No idea really Peter - That stuff is way more your bag than mine of course.
But if one wanted to maybe ensure prices pretty much ticked along with inflation (plus earing their yearly rent as income) - Which as a non-speculative type, I'd not see as a bad result at all, what would you suggest? 20%, 50%, or 80% ? - I'm open to suggestions? Get the balance right and you'll get the same end result of non-gov entities 'providing houses to the poor' without the boom/bust potential.
Mortgage Insurance is a cost, and investors don't like that. Mostly they borrow 80% using equity in other properties.
I think that investors get a bum wrap. I don't see them affecting prices except when prices drop they come in and put a floor in the market, but they pull out when the market gets hot. They need a return and they need a chance of capital gains. They don't get that if they pay too much.
If I was going to bring in macroprudential regs I would probably allow 95% loans to FTB's but limit the loan amount to $500K in capital cities (currently $700K) and $300K in rural towns, and upgraders I would limit to 90% and investors 80%
At the moment many lenders already limit investors to 90% and allow both upgraders and FTB's to 95% plus LMI costs up to 97%.
It would be only a marginal change that wouldn't affect the market much, but it would still allow FTB's into the market if they wish so. It's pretty damn hard for a mechanic on $65K with a checkout chick wife on $35K part time with 2 kids to save a 20% deposit, so we have to be realistic and not exclude them. If they choose to exclude themselves, well that's a decision they are free to make.
the Sydney market is hot up to certain price points and in some but not all areas. Talk of a boom in other cities is exaggerated. Warm markets perhaps, but not sizzling.
The mistakes that bears are making is thinking that house prices are not rising, they certainly are. The mistake that the bulls are making is expecting price gains to be very strong. It is less strong than that in most areas of Australia.
Any expressed market opinion is my own and is not to be taken as financial advice
Of course that's one way of crashing the bubble. Because of this it will never happen.
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.
Good luck trying to buy an investment property in the UK with less than 40% and if you can, expect rates to be through the roof... And you cannot negatively gear your investment property there...
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