Aceyducey said:
Lplate,
Why?
Explain your reasoning...
If an investor has a positively geared NSW portfolio & no need to sell, how is their risk increased? In fact their land tax obligations may well be substantially reduced & their ability to raise rents and therefore cashflow in the short-term are increased!
If land tax becomes everyone in NSW's concern doesn't this mean that the huge and sometimes unfair increases in book land value will have to stop as more people will complain & more voters are affected?
If less people compete over good investment opportunities due to increased entry/exit barriers how is the risk increased?
If single property investors in NSW are less likely to panic sell due to the extra sales costs & more likely to hold through a downturn, doesn't that mean that everyone's property is less likely to suffer drops in value & greater likelihood of a balanced market being preserved (between the numbers of buyers & sellers)?
Is government intervention always bad? What about the results of the auction reforms in various states? Hasn't that been primarily positive (though more painful for certain sellers)?
Cheers,
Aceyducey
Hi Aceyducey,
Rational, incrementalist, equitable policies are not all bad. The ACT had some of that prior to self govt
Discontinuity is a risk. Ambiguity is a risk. Reversal of policy is a risk
For example, Stamp Duty has always been high and for years many have said it was inequitable. In last years budget the NSW Govt said its Stamp Duty rates were lower than other states and there was no case for change. Of course the Govt did not say it probably got more duty than other states because of the relative value of NSW houses.
Recently the Govt reversed its position throwing the market into disarray.
With major purchases those of us with moderate reserves have to think and work long-term. What concerns me is that structures that seem satisfactory longer-term could in fact penalise. We can only manage the risks we know about.
I don’t think 'the huge and sometimes unfair increases in book land value will have to stop as more people will complain & more voters are affected'. After all, Council rates have continued to be pegged against the ‘unimproved’ land value – despite complaints from rate payers that CPI should be used.
‘Rational’ doesn’t work in politics.
Well, I have to be off now – I spent the afternoon supervising a plumber fixing toilets. There are things that shouldn’t be flushed.
I wonder what the other rich landlords did with their Easter? Sail the yacht, take the Gulfstream for a buzz?
Lplate
