Property market not geared for Labor negative gearing ban

Besides the rich and elite bit, I think this a fair analysis. Knock down rebuilds (townhouses, duplex, etc) will increase supply and provide more housing to renters and OO. There will be money to be ..well actually made, rather than just land banking and waiting for loose credit and desire of OO to increase wealth.

 

A lot of people really fear any changes to NG because they cannot pay down debt on property to the point the property is owned outright, they then can still continue to NG even under possible Labour changes.
The problem is many speculative investors have no interest in paying off property as tax laws are a lot more favourable to those that keep their interest payments artificially high to maximise tax deductions against general income.

 

My reasoning behind point 2 favouring the rich is on the following logic:
a. by and large population growth increases demand for dwellings - not policy changes.
b. by and large people are attracted to jobs and diversified economies

Accepting that premise, then its a question of who's capital will provide the signal to create housing people want to live in. If you accept the logic of the first points in my post (1.a.b.&c.) then: Mum & Dad investors will be less able to compete with wealthy investors to provide housing of equal value to renters because of owner occupier competition maintaining dwelling values.

 

The article is spot on.....labor has not though through the impact to lending. Most banks use negative gearing benefits in their calculators..if this is discontinued this will impact serviceability.

Simple as that.....

Believe I hate ScoMo...Dutton....Corman thw whole lot of dem....they are blatantly bigoted and prejudiced. I wish we had someone like Jacinta from NZ. But what labor is not better....and the independents are full of cuckoos also...I guess it shows how stupid the Australian public is ...why do we tolerate them? The last time we had quality leadership was Hawke/Keating.

Also Howard/Costello did was **** up the GST revenue in tax cuts...but did not improve services....they should have balanced tax cuts with services.

ScoMo makes my skin crawl ...he is very divisive...and a poor leader...but get that better than Bill...

 

hehe Sash ... I am considering to vote for ALP

What did we get out of Turnbull when at the time ( he took over the leadership) I thought he would do something good? He got no courage and where did he end up now? What happened to Dutton? Still the Minister

Property is not the only path to create wealth under the LNP I saw euro's post when he purchased his PPR in 2008 and invested after and looks like he did not rely on negative gearing to do well did he?

Palmer declared he will be the next PM with many candidates and spend a fair bit on ads. So exciting isnt since he is pro-business? If I was him I would give 5-10 mil to Ashby & Dickson and got the Govt by the balls to do what they want

Are there any decent Aussie blokes left? Why I asked? After all these years and always left to Pauline to clean the **** *******s

Has the Gov achieved much in the last 6 years?

I do not like Shorten because he "knifed" two PM and now he wants to stop all the wealthfare but at least he wants to "try" something

Anyway I have one more week to decide

 

You dont need to be rich , just a lot better at paying down debt and slowing things down a bit.
No shortage of hearing about people that have multiple properties but do not even have sufficient cash flow to pay P&I and maintain their lifestyle.

 

I am not neg geared...but also not a fan of CF only properties...they need to go hand in hand...otherwise you feel the pain when you sell....

They are all ******...anyways.....

 

Whats really funny about that is that negative gearing was supposed to act as a safety net , especially in the 80s when small investor gains turned into losses every time interest rates went back up and the market turned into a yo-yo .
Negative gearing was intended to stabilise the market during periods of high interest rates.
Yet we have the lowest rates in living memory.
Using negative gearing for serviceability purposes just shows how far house prices have outpriced wage growth(another story in itself) and the creativity of banks to keep the money flowing.

 

I spent a lifetime making lemonade .

When I retired nearly 9 years ago, I thought I had enough lemonade in my warehouses to last me the rest of my life .

My lemonade must be good stuff as it seems like whole mobs of ALP theives are working on ways to steal my precious lemonade .

Looks like I will need to strengthen the security of my lemonade warehouses, move my lemonade to newer/different warehouses, ... .

I would rather spend my retirement in peaceful bliss enjoying my lemonade BUT if some crooks are going to try and steal it off me after 40 years of hard work, I am not going to take that lying down .

 

Exactly, home prices have become too ridiculously priced in Australia. Partly from elevated land prices and partly from the cost of labor/materials involved in building a basic home. if land was available for 50k, rather than an inflated 200k, it makes a big difference to affordability.

Even for Perth, there needs to be further downside to prices.

For average family a loan of 300k for their ppor shouldn't be toohard to achieve with 1 breadwinner. But with median prices even in Perth much higher than that, a 2 income serviced loan has become a must.

All the investor friendly easy leverage and policies really need to be taken away to level the playing field and for prices to 'make sense'

 

Haha chill out bloke you'll blow a gasket

The Australian is a great paper

Their opinion pieces are particularly entertaining to read.

Hopefully the ALP doesn't make it in. If only we could cutoff Victoria that leftist hotbed of soy latte sippers will likely push Labor back into power

 

Not blowing a gasket.
I have a terrible relationship with the Australian, pretty much read it for the nutter comments for each article (sadomasochistic I know... )..keep in mind I don't pay for it, use Twitter links and news links to access the articles.

 

Well it didn’t cause this last time so I expect it won’t this time either.

Though, as an investor who doesn’t need negative gearing, I’d like rents to rise!

 

Between trade wars and our economy going downhill, hard to see that happen. RBA just revised down the economic forecasts

The economy is not strong, despite what the Coalition says

 

Yep...a safety net for people like moi.

Easy ole timer....I don't think the changes will pass the senate....you can put the shotgun back in the gun cabinet!

As I said...who cares...if those idiots in ALP get voted by morons...I am going to increase rents on the morons.....dems how feudalism works.

 

One reason we can't rely on the history of past removal of NG's effects on prices is that back in the 1980s, the housing market was completely different from what it is now. IIRC, we were in a recession (same), but it was also much easier to buy houses, as the Millennials keep reminding us.

 

LNP

Will win the election bus my prediction.

The amount of adds Labor is running is such a huge waist if resources. Our resources.

I dont think the Australians will allow Bill in.

 

I agree rents will climb.

May I add I found think it's taxation in isolation.

Sydney has the a record drop.in construction starts.
This mean.in 3 years assuming trend population growth we will have a very tight rental market.

 

Mathematically that is very unlikely. They are already in a minority government which means that if they retain every seat, they still lose. Then there is the recent electorate boundry movement which should give Labor another 5-8 seats. Lastly there are the Julie bishops and Christopher Pyne's who are all not contesting post leadership spill.

I'm not saying it's not impossible but it's very, very unlikely that the coalition will get back in.

I'd be preparing for a Labor victory.

 

It maybe sooner....depending on how people react if labor wins....I am quite bullish on Brisbane, Adelaide, and Perth....those cities may have a severe shortage...as the number of builds have dropped dramatically. If labor gets in..I expect there will be a 10-20% increase in rents over 2-3 years..maybe more.

That could add another 20-40k in rents for these cities.

I also think rents in Melbourne will also head up....