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If average or wealthy people move to less wealthy areas, where do the less wealthy people go?
What's not to like? Not the aspirational trinkets, not the aspiration but the expiration of those you seem likely to trample getting there.
Where do they go to in other parts of the world?
What past have you been reading?I think this is the bit people fail to understand. The average person will not (or should not) be living in a dump in western sydney. This didn't happen in the past - why should it now?
And the idea that they can buy this dump as a starter and then move once it has "gone up in price" doesn't make sense either because they need to find somebody else to pay more for the place than they did. Who would that be? Somebody on an even higher income?
How is investing in property trampling over people?? Please explain further. Personally I fail to see the connection.
I think the argument is that investors have tax advantages over owner occupiers and are using that to add a massive speculative premium to the housing prices pushing everyone's cost of living up (if they buy) without in most cases adding anything to society except a transfer of title.
While I support removal of negative gearing on existing properties & bringing capital gains tax back in line with income tax but if you want to be a property investor that's fine with me
I just wish the whole of the country had jumped in at the same time thinking it's a fool-proof ticket to riches because borrowing from overseas to bid up existing residential real estate prices is a pretty dumb thing to do for a country as a whole,
and it'll probably lead to a recession, job losses and negative equity to people who just wanted a home
If the speculators get burnt, they should just take it on the chin (don't you dare ask for a bailout!) as that's capitalism, but the people who bought because mainstream culture tells them to and get hurt, well, those people I feel sorry for (but no bailout either)
What past have you been reading?
Are you aware of the first house Jan Somers bought? Raised that as it seems fairly topical based on where we are posting!
YM that is exactly how people have been starting, going back to federation. I have done plenty of reading on this subject and am not shooting from the hip or what I can cut n paste from the net.
Everybody misses the point. See my response to Andrew - it is about using a rising first home value as funding for your next house - that is the bit that doesn't work long term. The mismatch between incomes and house prices can not be solved by a rising first home value.I have just picked myself up off the floor. I am still trying to come to terms with what I have just read above. Comments like those above expose the whole affordability debate for what it truly is - a fraud.
If average or wealthy people move to less wealthy areas, where do the less wealthy people go?
YYYYYYYYYYYYAAAAAAAAAAAAAWWWWWWWWWWWWNNNNNNNN!
In case you have all forgotten; this topic was about inspired conversation.
This actually is very uninspiring, boring and now very annoying.
Yes, I can change channels I suppose...
Yield; change the record for GOD'S sake.
Oh yeah; and if we do away with all the tax benefits (which the govt introduced to create incentive for investors to do it so the govt doesn't have to because they don't want to), where will YOU live after the rents skyrocket due to the massive shortage of rental properties which all the investors sold off because there is no incentive to do it anymore??
I think the argument is that investors have tax advantages over owner occupiers )
and are using that to add a massive speculative premium to the housing prices pushing everyone's cost of living up
While I support removal of negative gearing on existing properties & bringing capital gains tax back in line with income tax but if you want to be a property investor that's fine with me.)
I just wish the whole of the country had jumped in at the same time thinking it's a fool-proof ticket to riches because borrowing from overseas to bid up existing residential real estate prices is a pretty dumb thing to do for a country as a whole, and it'll probably lead to a recession, job losses and negative equity to people who just wanted a home.)
If the speculators get burnt, they should just take it on the chin (don't you dare ask for a bailout!) as that's capitalism, but the people who bought because mainstream culture tells them to and get hurt, well, those people I feel sorry for (but no bailout either)
YYYYYYYYYYYYAAAAAAAAAAAAAWWWWWWWWWWWWNNNNNNNN!
In case you have all forgotten; this topic was about inspired conversation.
This actually is very uninspiring, boring and now very annoying.
While I support removal of negative gearing on existing properties & bringing capital gains tax back in line with income tax but if you want to be a property investor that's fine with me.
I just wish the whole of the country had jumped in at the same time thinking it's a fool-proof ticket to riches because borrowing from overseas to bid up existing residential real estate prices is a pretty dumb thing to do for a country as a whole, and it'll probably lead to a recession, job losses and negative equity to people who just wanted a home.
HG,
1) PPOR is totally excempt from capital gains tax
2) PPOR is not counted as an asset for the assets test meaning that it is possible to own a million $ PPOR and still get the old aged pension and the other benefits that come along with it.
Research indicates that OO's push up the price of houses, not investors. (Fairly basic knowledge by the way).
How do you explain the recent initiative by the government to cut taxes signifanctly on superannuation?
Do you realize what impact the removal of negative gearing would have on the rental market?
Rents would sky rocket
Some members of society would have no where to live.
To state that this in itself will lead to a recession is inflamatory. Housing is only one part of our economy. If people loose their jobs because companies begin failing, then this will lead to a recession and a fall/stagnation of property prices.
Property investors are actually responsible for creating a lot of work, and this helps to stimulate economic activity.
From reading your posts it sounds as though you don't so much have a problem with investing in property, but investing in general to improve your wealth. That is an issue only you can overcome if you choose to.
Nullagine,
How is investing in property trampling over people?? Please explain further. Personally I fail to see the connection.
Regards Jason.