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  1. wategos

    Potential negative gearing changes

    This is what I am talking about and what I see also.
  2. wategos

    Potential negative gearing changes

    Adding the population growth factor into the argument is a furphy, its a seperate issue which applies upward pressure to both house prices and rents.
  3. wategos

    Potential negative gearing changes

    Nothing happens to rents .. since the vast majority of investors buy existing housing, they don't provide supply. I don't think perceived social generosity is the driver behind property investors actions... Got to laugh at the faux concern some show for the imagined "rental shortage and...
  4. wategos

    Potential negative gearing changes

    Great lets just screw the younger generation and all get rich at their expense. I dont buy this "it was just as hard in our day too" argument, I bought a place in my 20s, it was much easier with a lower relative debt load than it is today, and there was not such a huge army of property investors...
  5. wategos

    Potential negative gearing changes

    I have grown more against it as I have got older. I have kids growing up and I can see the damage that the explosion of government subsidized property investors making a loss is going to do to them. I do not know how anyone can come the conclusion that speculators are not pushing prices up or...
  6. wategos

    Potential negative gearing changes

    No, anyone who is negatively geared is a speculator by definition of the word. Making a loss hoping for future capital gains profit, that is what speculation is. Yes they are investors also, speculation is a type of investment, but we are talking about negative gearing so easy to just to say...
  7. wategos

    Potential negative gearing changes

    The 80K income figure is misleading and has been debunked, since it is AFTER their gross income has been reduced with property investment losses and depreciation. By far the biggest chunk of tax deductions is within higher income groups: the-myth-of-mum-and-dad-negative-gearers
  8. wategos

    Potential negative gearing changes

    Most property bubbles around the world are primarily driven by speculators pushing up prices, Australia is no different as hobo-jos charts show. In the US for example, the four states that had the biggest rises and subsequent crashes (Arizona, California, Florida, and Nevada) also had the...
  9. wategos

    Potential negative gearing changes

    The disaster of the policy is that over half of properties are now bought by investors (/speculators) at the expense of many first home buyers who have been sacrificed. That pensioner stockpile will be a bit bigger because of negative gearing.
  10. wategos

    Potential negative gearing changes

    I think you will find that yes yield will be better but not because of increased rents, but because of lower property prices since speculative demand will be reduced. So short term, bad for property prices but over the longer term people will continue to invest with better yields. So removing...
  11. wategos

    Potential negative gearing changes

    This has been debunked since the 80K figure is AFTER their gross income has been reduced with property investment losses and depreciation. the-myth-of-mum-and-dad-negative-gearers This is the simple point I keep trying to make. Anyway its good to see pressure building against the idiotic...
  12. wategos

    Potential negative gearing changes

    Actually when you think about it, rents could actually decrease for many places that have a small vacancy rate since the vacancy rate increases when there is a transfer of renters to owners. Interesting.
  13. wategos

    Potential negative gearing changes

    You guys claiming that rents will go up because of changes to supply/demand just dont get it. You bring in other factors, like growing population, which of course pushes up rents in any scenario. Alone, investors withdrawing will not cause rents to rise since supply/demand is unchanged. The...
  14. wategos

    Potential negative gearing changes

    Yes of course lots of things affect demand and supply, immigration, jobs, gentrification. But we are talking about investors selling, or not buying existing property.... this does not affect the demand supply equation or rents.
  15. wategos

    Potential negative gearing changes

    No it does not. The property is still there and either rented or a former renter buys it. If an owner occupier buys it then there is also no change in the demand supply equation as their previous property enters the market also. So there is no upward pressure on rents, but more people would own...
  16. wategos

    Potential negative gearing changes

    No this did not actually happen the last time NG was last restricted, investors did not bail out and even if they did who would they sell to ? other investors or former renters or owners, the demand supply equation remains the same and there is no upward pressure or rents. It was reintroduced...
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