Real Estate 4 Ransom Documentary

Knew where this was going with the intro implying that every year we lose doctors, lawyers and engineers to "an industry gambling on price speculation"... property investing! Apparently buying and selling real estate is more lucrative so they engage in it instead of being trained to do what they do

Some eye rolling quotes included;

• "a significant amount of revenue could collected through land tax. This could allow for the removal of income, sales and payroll tax"
• "a vendor has had his property on the market for a thousand days, he raises his price 10%. He can do this because there are so few costs involved"
  
• "as populations increase, land prices rise as if by magic"
• "today, instead of whips and chains we have high rents and low wages"
• "Huge tax free profits can be made by land speculators at minimal risk"
• "High rents stifle entrepreneurial spirit"
  
• "speculators can dodge paying tax while workers taxes fund the infrastructure that makes the speculators land more valuable".

My favourite quote was from a couple who claimed "we're competing against people who already have lots of houses, who already have that kind of capital and that wealth behind them. We can't compete against them in auctions, we can't compete against them in the kinds of areas that we've lived in most of our lives and continue living in."







"Landlords grow richer, as it were in their sleep, without working, risking or economizing"- John Stuart Mill, Philosopher. You can bet this guy never owned an investment property

 

Nor did he take any risk by borrowing and having any enterprising bone in his body.............or subsidise housing for tenants to alleviate the government of a prime need under Maslow's Hierarchy.......that of accommodation (housing, shelter, etc). I'm not saying that house prices should be at this level or whether they might soften a little and go sideways until some (actual) wage growth occurs to enable those who might be inclined to have a crack. Life is much more complicated with distractions like high end mobile phone plans, Foxtel, all things that rust, rot and depreciate, and the like than when Mr. J.S. Mill posed his comment, however for those who actually want to get ahead they will find a way.

Before I get flamed by the anti landlord (and anti negative gearing brigade)...............Peace and Happy New Year to everyone