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So, to summarise, no NG environment eg Germany: higher rent expected, 1991 base, 100 sq m bare apartment, $4500 per month, smaller city than Brisbane compare with my executive Brisbane apartment 2015, 80 sq m (carpeted, secured parking, aircond, stone countertop, Bosch appliances) $1800...

I agree with both conclusions plus the environment will be higher rent as faceless corporation will be chasing target ROI, etc. It must be worthwhile for corporations to operate in this space and governments will be moderated by this consideration.

Hi Morbius, sorry for the delayed response. This comment is puzzling me that more institutional investment in rental property would improve security of tenure. It is not borne out in my experience. I have rental properties for over 25 years now in Melbourne, Brisbane and ACT. Only one...

Current Buyers of established houses - investors and OOs (including FHB) Buyers of new houses (including units) - investors and OOs (including FHB) Increase demand comes from - home leavers, migrants, overseas students, interstate workers, FIFO, financially limited situations (bankrupts...

This preoccupation with getting a house for FHB seems to be going round and round. What are FHBs entitled to? Australia subscribes to international declarations. From Wikipedia, the right to housing is recognised in a number of international human rights instruments. Article 25 of the...

Kudos. Removing NG for individuals (that is what we are talking about) would further make private rental an investment option for wealthy individuals or collectives of individuals (joint ventures of individuals) - all using company and trust structures. There are already plenty of...

This is an interesting thread. It is enduring partly because there are myths. Some that come to mind are: 1) some contributors believe unwaveringly that NG is a subsidy that the government is giving to the rich. It is not a subsidy. It is not just to the rich. To label NG as subsidy is to...

LOL. Eat rice and be part of Asia! Don't be non Asian. Increasingly, Australia is Asianised. It is inevitable! Government intervene to prevent the inevitable? It is pointless! Frivolous! Eating rice is a lifestyle choice, just as renting often is. Don't pretend otherwise. Live and...

The last time NG was abolished, tenants and their advocacy bodies were most vocal and influential on the Labor government to rescind the measure. I believe tenants, notably immigrants will be the principal victims of the proposal to abolish NG. Some gains may accrue to aspiring and covert FHBs...

Thanks for bringing this up. Losses are carried forward in small business from the cumulative result of all income earning activities of the small business. This also applies to most tax entities (trusts are treated differently). The NG proposal for individuals is to quarantine rental...

This is a good analysis, however, I wish you do not use this word as it can mislead people to think that the government is giving investors money to continue investing in rental properties. NG arises from legitimate tax deductions exceeding incomes and is available to everyone conducting a...

Weirder and weirder!

You should read my previous post more carefully: "Grandfathering option is meant to minimise impact on existing investors, leaving its full impact on future entry of investors. Hence, abolition of NG acts as a disincentive to existing investors to continue investing in rental properties and...

One step economic analysis seems to be common out there. An analysis of rent pricing that omits demand from a flow of 300,000 immigrants per annum requiring private rental accommodation is reminiscent of Keenish analysis omitting government intervention in economic downturns. Bizarre!

I am not suggesting that investors artificially keep rent low because of having NG. Sarcasm noted. I am suggesting that by comparison post abolition of NG with grandfathering should bring about higher rent. A policy of abolishing NG is meant to remove perceived financial advantage...

Availability of or lack of NG has another impact on rental housing - its quality. If NG is not available on residential housing ie any effort and expenses exceeding revenue would not be readily recognised. It would bias landlords negatively from maintaining their rental properties. It would...

Me too - thinking selfishly, rent will increase if NG is grandfathered, although property values will enter low CG environment for a while. Not a bad situation if you already have enough finance from years of equity growth. Just sail along with improved serviceability, while Mark 2 social...