this so much this...T_R wrote: ↑November 9, 2018, 10:07 pmI guess it's offensive if you try really, really hard to be offended. Which I think you are a little prone to doing.gangrenous wrote: ↑November 9, 2018, 9:17 pm You’re both right on the basics.
Except you know what doesn’t help? Having investors in the mix too.
Characterising it as people being upset they can’t buy in Mosman is lazy and offensive.
No comments on the plot hole in your previous narrative either Zaius?
The fact is, there's a constant dialogue about how house prices are 'impossible' and 'out of reach' of young people. What we're forgetting is that young families have ALWAYS had to move out to the suburbs to build a house. In the 40's, my grandparents were laughed at for building 'out in the country' in Bankstown. My parents built the first house in the middle of a paddock in Rivett 30 years later, and 30 years after that my brother bought his first place in some windswept floodplain just north of Tharwa. Welcome to young adulthood.
The inner city is expensive, and tax changes will make no difference to that. Why focus on investors? As GE said, whack on an inheritance tax, or if you prefer stop exempting the family home from capital gains. Either will kick the housing market into the gutter, and your shiftless Arts students friends can all buy a falling down terrace in Newtown again.
As an aside, I don't really get that worked up on the negative gearing conversation. I own a few houses here and there, and the one thing they have in common is that they are all positively geared. I invest to make money, not lose it. If Shorten makes his changes, I 100% assure you that rents will go up on the spot....frankly, I expect to do well out of it.
I have yet to meet a person who have explained there circumstances to a situation where I think it’s the housing market keeping them from buying not:-
- there expectations
- there own nervousness about the direction of the market
- there balls being able to borrow and bid in a certain range
- there employment situation
Their not there, but you get my drift.
Fundamentally the policy to me just seems like a poor attempt at a tax grab.
Currently home owners do have a massive advantage on investors in that we don’t pay land tax and our capital gain if applicable is completely tax free. If your goal was to give home owners more of a leg up you would make the interest on ur home deductible ala the us. That said though the govt wouldn’t do it because they want tax revenue and fundamentally its bad tax policy to make a personal non business expense deductible.
Just as it is a bad tax policy to make a business expense non deductible.