Government to act as Housing affordability becomes major election issue

Sell those loss making IP's folks. There will be no capital gains for years.


http://www.theage.com.au/national/canberra-states-probe-home-prices-20100421-t2ih.html

Canberra, states probe home prices
TIM COLEBATCH
April 22, 2010
FEDERAL and state governments have commissioned a working party of officials to hold a no-stone-unturned inquiry into all factors contributing to record house prices, as Labor senses the issue is becoming a political danger.

The inquiry, to deliver its first report within weeks, will examine sensitive areas such as tax breaks for negative gearing, land banking by developers, and whether grants to first home buyers push up house prices.
.....

http://www.coag.gov.au/coag_meeting_outcomes/2010-04-19/docs/Communique_20_April_2010.pdf

HOUSING REFORM AGENDA AND TIMELINE

COAG has agreed that the Housing Supply and Affordability Reform Working Party report to COAG, via the Ministerial Council for Federal Financial Relations, on:
• the housing supply pipeline, comprising an examination of:-
− the potential to reform land aggregation, zoning and planning processes and governance, including assessing and leveraging the work of Housing and Planning Ministers and the Business Regulation and Competition Working Group (by mid-2010),.....
 
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Done... will sell everything in the morning, what to do with my CGT liability and desire to self fund my retirement though Ruddprime

All tips welcomed
 
Done... will sell everything in the morning, what to do with my CGT liability and desire to self fund my retirement though Ruddprime

All tips welcomed

CGT Liability is an easy one.

Set yourself up a Charitable trust, transfer prop's into said CT, name yourself the CEO, and pay yourself a salary each year for ever and ever.
 
sorry dudes and dudette's.

I forgot to add my favourite chart

Site value = land value, just incase some don't quite understand it.

landprice.png
 
They are not joking when they say most PI's are passive investors.

But like some on here where you've got effective asset allocations of 500% OZ property you'd think you'd following any developments from the powers like a hawk.


the GFC exposing Australia's huge overseas borrowing balance and risks - check
Glenn Stevens on property leverage - check
Government on excessive land prices - check


I guess the population growth is the bulls last and only hope now...


Disclaimer... I'm not holding the bag ;)
 
'govt' and 'act' in the same sentence.... haha. the only time I have seen that is the Tea and Biscuits Govt Act of 1953 (as amended)
 
In flies another new member . Cut and pastes his brains out, bombards us with doom and graphs to prove it and then just like all the others its off into the sunset never to be seen again ....Yawn.....:rolleyes:

Someone change the station. This song is getting old:rolleyes:
 
They are not joking when they say most PI's are passive investors.

But like some on here where you've got effective asset allocations of 500% OZ property you'd think you'd following any developments from the powers like a hawk.


the GFC exposing Australia's huge overseas borrowing balance and risks - check
Glenn Stevens on property leverage - check
Government on excessive land prices - check


I guess the population growth is the bulls last and only hope now...


Disclaimer... I'm not holding the bag ;)
All those people that may have too work in the mines for their dole payments
might want too upgrade from the trailer park and buy a home of their own if
MrRudd gets shown the back door by Australian voters,myself i don't care less as long as rents are paided ..willair..
 
Awesome it is good to see the Govt. can fix everything and in good time too.

Environment overheating/changing/melting/freezing/drying? - No worries we all should be insulated now by batt/foil/solar/water tank give way.

Running out of water? - No worries the Govt is on it, building pipes, buying back water, building Desalination plants.

The Global Financial Market collapsing? - No worries the Govt will take a loan out for you and hand you cash in hand! No need to thank them.

Kids are getting dumber? - No worries sheds and libraries have been built to keep them out of the rain/sun, all thanks to the Govt , and a website has been setup to track just how dumb they are.

People are still dieing waiting to get into hospital/clincs? - No worries the Govt is starting a collection tin for $$. and bureaucrats will soon have the whole thing fixed as soon as the $$ come in.

People can't afford housing? - Don't fret the Govt has setup a committee, they'll have a cracker of a solution in no time.
 
lmao, the fact that it tacks an "inquiry into all factors contributing to record house prices" makes it obvious that they have no clue about what's going on, and even if they could work it out eventually, they'd have no idea how to fix it.

That the state gov will do anything to hassle "Big Property" is absurd, they've had them in their pocket for decades.
If anything they will come up with some hairbrained scheme to lower their costs of bringing "new affordable developments to the people".
Prices will be made to look stagnate, and gov will take the credit and tell us they made property more affordable as the election donations keep pouring in.
 
i have thought about this alot and can find a positive for every negative they come up with, its all positive for the true investor.
what can they do, raise interest rates, so their will be buisinesses going bust!
cut the negative gearing scenario, so there will be folks on the street, and more opps for the other investors.
bring in another tax, its all claimable because its like a buisiness expense?
realease more land, can't do it because it takes so long to build and we do not have the builders and trades to build them.
bring in more builders from the US , no the unions will not allow this! they cover their own ***.
cut the GST's and other stamps, it will be a buying frenzy, untill they change it.
the only thing that could stop this rollacoster event, is if they culled of the population. and yea, right!
they cant do it and if in any possible scanario they could, it would take all states and ministers with NO! investments to aggree. and it will happen. NEVER!
 
to add to my last , quite bizzare...

my bookkeper said to me , i want my kids to be able to afford a home, the home prices are too high, i replied what should they do do you think?

she said drop the home values by doing xyz.. i said so you do not have an issue with your home being worth 200k less, Oh no she said i don't want that to happen , i said well then .............!

it will never change , and perhaps they should buy now and tell others how they made 300k in ten years... she shrudded her shoulders , and aggreed.

so if thats what my book keeper thinks, what are the rest of Australia thinking.
OMG.
 
At the end of the day, property is the underlying indicator on the strength/weakness of the economy...and there's no way any government will mess with a sector that has the capacity to easily become unstable and threaten the economic viability of the nation.

Like I said, Ive been to Europe and all these things were discussed 20 years ago there, what happened? 80% of ppl rent, they came to accept it. Those that have property became wealthy.

The way I see it, barring any global economic catastrophe, hoard up on property, because you will have assets that the next generation and those that come after will be paying through the nose for.
 
At the end of the day, property is the underlying indicator on the strength/weakness of the economy...and there's no way any government will mess with a sector that has the capacity to easily become unstable and threaten the economic viability of the nation.

Like I said, Ive been to Europe and all these things were discussed 20 years ago there, what happened? 80% of ppl rent, they came to accept it. Those that have property became wealthy.

The way I see it, barring any global economic catastrophe, hoard up on property, because you will have assets that the next generation and those that come after will be paying through the nose for.

X2 that well said.:D
 
Like I said, Ive been to Europe and all these things were discussed 20 years ago there, what happened? 80% of ppl rent, they came to accept it. Those that have property became wealthy.

Not quite.

The average home ownership rate across the European Union in 2003 was 64%, with Germany having the lowest rates (42%), whilst the Mediterranean countries had the highest (80+%). (More here.)

And Bulgaria had the highest rates of property ownership in Europe in 2003, at 97%. (Source.)

You'd be unlikely to become wealthy fast in Germany off the back of property ownership. Prices have declined in real terms for around twenty years.
 
I will point out that housing affordability is merely and only a vote grabbing issue for the government.

Australia's real economic problem is the $600B oz banks owe to foreigners.

This has almost all been SQUANDERED on land. Thats right Australia's fetish to borrow from overseas to outbid each other and buy a piece of dirt in our very own country.

Glenn Steven's fired the warning shot to the pollies. If you do not FIX this OVER INVESTMENT (or is it speculation) in land, I will have to crush the economy by hiking interest rates further than you would like.
 
In flies another new member . Cut and pastes his brains out, bombards us with doom and graphs to prove it and then just like all the others its off into the sunset never to be seen again ....Yawn.....:rolleyes:

Someone change the station. This song is getting old:rolleyes:

I'm with you devo,

Read it all before - couple of yrs back on here we were inundated with rubbish from the D&Ger's.

Then they went quiet (must have lost their It jobs during the downturn - well of course they would have, many IT jobs have gone offshore!)

What happened during that time? Melbourne and Sydney began to boom!

Pity those that listened to their rubbish and sold out. (Yes, there were some on here who did just that!)

As for KRudd - well, he will have an inquiry into anything and everything - so it seems!!!!

Keep your eye on the prize and block out short term noise!!

When the D&Ger's appear, it's time to get your IP's revalued as you've probably made lot's of money since their last instalment of wisdom!!

Regards Jason.
 
I'm with you devo,

Read it all before - couple of yrs back on here we were inundated with rubbish from the D&Ger's.

Then they went quiet (must have lost their It jobs during the downturn - well of course they would have, many IT jobs have gone offshore!)

What happened during that time? Melbourne and Sydney began to boom!

Pity those that listened to their rubbish and sold out. (Yes, there were some on here who did just that!)

As for KRudd - well, he will have an inquiry into anything and everything - so it seems!!!!

Keep your eye on the prize and block out short term noise!!

When the D&Ger's appear, it's time to get your IP's revalued as you've probably made lot's of money since their last instalment of wisdom!!

Regards Jason.


For the record i was not one of those D&G'ers in 2008.
as was clear in the article i wrote back in 2008 (under my old name: chilliaa).
You can read it here (scroll down to the part about residential property).

http://www.somersoft.com/forums/showpost.php?p=649740&postcount=1

What i find interesting is the last comment about residential property in that aricle:

I should however add a word of warning here.
If i am correct about generic medium priced housing remaining roughly stable or even more problematic showing a price rise, this does pose a risk in the longer term as it will give positive reinforcement to the attractiveness of residential property as an investment class.
With the massive capital losses seen in the stock market this may encourage future speculative money into residential property (once the global financial crisis concludes) increasing its supply. If supply increases materially to cover its current short fall, we could be in for a rough time when interest rates increase in the future (because the key underlying demand/supply issue wont be supporting the market, and also the reverse of the current benefits of central bank movements in interest rates come into play, i.e. just as decreases had a disproportional higher impact on home loan repayments due to the high % of variable interest rate loans, so will increases in future interest rate rises have a disproportionately higher effect).


This is partially exactly what is happening now (only the increase in supply is required)

I am still not a serial D&G'er, however if i was a fundsmanager i would be moving from my previously stated 'neutral' on residential property to underweight as a % of assets owned.
 
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IV

"This is partially exactly what is happening..."

Is "partially exactly" like "almost zero" (being not zero), or is it more like "Army Intelligence" (being not intelligent).

Or maybe it's more like (to quote those muppet poets from Pommyland) "Definitely Maybe?"

:) Just curious...
 
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