Journalists experts - bless their little knowledge

[Gentle_Chief]

http://www.smh.com.au/opinion/polit...ope-for-fixing-tax-system-20110929-1kz76.html

I read and reread this article in utter disbelief. And is published by smh on the front page.

"why are house prices high in Australia?"
Because:
1. Credit is "freely available"
2. Interest rates have halved from 1990 levels

Huhhhhh.....have you ever tried borrowing? Or did you know the 18% interest rates in 1990s were monetary poicies carried out in extreme situations where there was a hyperinflation followed by a recession. And this is not 'normal'.

Sorry, I don't mean to discredit an property 'expert' but I wish you owned a house and paid a mortgage before you wrote about the housing Tax re-structure in Australia again.

Little knowledge by pimple faced writers can do great harm.

 

[nww]

Yeah I remember the early 90's well, 17.5% term deposits.
Saved up quick for my first deposit for all the cheap houses going.

 

[CHam]

I don't mind the idea of a land tax if it replaces stamp duty (especially in VIC where stamp duty is excessive).

However I don't agree with the theory that it will make property more affordable (with the exception of removing the cost to buy obviously).

Reducing the cost of purchasing a property should increase the volume of buyers in the market. I would have thought that the price of property itself would increase as a result (similar to effect to reducing interest rates).

Personally I would be happy to pay a land tax in place of stamp duty.

 

[Aaron_C]

I don't mind the idea of a land tax if it replaces stamp duty (especially in VIC where stamp duty is excessive).

However I don't agree with the theory that it will make property more affordable (with the exception of removing the cost to buy obviously).

Reducing the cost of purchasing a property should increase the volume of buyers in the market. I would have thought that the price of property itself would increase as a result (similar to effect to reducing interest rates).

Personally I would be happy to pay a land tax in place of stamp duty.

I already pay over 30k in land tax....I'm not happy

 

[toony]

Personally I would be happy to pay a land tax in place of stamp duty.

Why - Stamp duty is a one off tax payment whereas Land Tax is every bloooooooody year.

 

[jingo]

I'm not sure that an ongoing land tax on a principal place of residence would work. Many people would struggle to pay this - including families, single parents, not to mention retirees and the elderly. Perhaps if this was introduced in lieu of property rates it may be possible.

Perhaps a better idea would be to exempt FHB from paying stamp duty.

I wonder how much revenue is currently raised annually by the government from investors paying landtax on their holdings? This is a point never raised in these types of articles, but I know many of us on SS are paying more than our fair share of land tax already!

Regards Jason.

 

[Angel]

O goody! I just spent $25,ooo on state stamp duties last year, and now this journlaist thinks that come next year I will want to pay new taxes as well as the stamp duty i just paid. WT???

 

[Rolf Latham]

I already pay over 30k in land tax....I'm not happy

There is another way to look at this

be happy................and grateful, it shows you have managed to do what most people cant

ta
rolf

 

[CHam]

I already pay over 30k in land tax....I'm not happy

And how much stamp duty have you paid.....?

 

[CHam]

Why - Stamp duty is a one off tax payment whereas Land Tax is every bloooooooody year.

I paid over $19k in stamp duty and costs on our last IP. Do you think I will keep it more than 15 years?
Tell me which scenario I would be better off with?

 

[Aaron_C]

And how much stamp duty have you paid.....?

Much much more lol

 

[Kristine..]

I paid over $19k in stamp duty and costs on our last IP. Do you think I will keep it more than 15 years?
Tell me which scenario I would be better off with?

Perhaps you should ask me what Land Tax I am paying this year?

A transaction based one-off impost is always going to be less than a thinly disguised 'wealth tax' which increases every year

In our house, we shed tears every 31st December as that is when the Land Tax is levied upon us and drains our lifeblood away in very nasty instalments throughout the following year

If you think that Land Tax is preferable to Stamp Duty then you obviously do not plan on owning very many properties at all!

Cheers
Kristine