Screw Property Investors

Discussion in 'Property Market Economics' started by MTR, 26th Apr, 2017.

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  1. Phase2

    Phase2 Well-Known Member

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    I dunno.. depends on whether the libs want to run a "clean" campaign again.. they could have torn Shorten to shreds last time, maybe they were keeping their powder dry...
     
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  2. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    I would think even with out negative gearing,
    one would be able to claim all expenses along with interest paid ONLY from current or future rental income and not from 'current years' 'other income sources' (like your salary for e.g.)

    This will increase governments Tax revenue for the year.
    It will also decrease the landlords serviceability,
    thus reducing what one can borrow, with less money to punt.. house price rise can be contained.

    Let me know if my understanding is incorrect.
     
  3. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Rent Increase is a function of supply constraint.
    How would removing NG from existing property decrease number of houses available for rent?
     
  4. Username86

    Username86 Well-Known Member

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    I think there is a few ideas about what negative gearing is.. my understanding is that its the ability to offset property losses against other income. I think that as @TheSackedWiggle said all deductions will remain they will just remove the ability to offset a loss.
     
  5. MTR

    MTR Well-Known Member

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    ....and more in the budget

    investor no longer will be able to claim travel expenses?
     
  6. dabbler

    dabbler Well-Known Member

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    Less investors buy......so less available to rent, not instant, but over time.......
     
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  7. bumskins

    bumskins Well-Known Member

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    Kinda makes sense. Might still be able to use it for strat meetings so may not matter anyway.
    But I imagine there's lots of people that take the ****, with travel, accomodation and all sorts of things.

    Labor has a proposal too cap accountancy/legal fees for individuals too, after a few people reportedly made claims for $1M and ended up paying no tax.
     
    Last edited: 13th May, 2017
  8. Xenia

    Xenia Well-Known Member

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    So much interfering.
    I wonder what would play out if it was totally a free market?
     
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  9. Sean Myers

    Sean Myers New Member

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    I agree that these Labor policies will kill property investment. If property investment by investors dry up, there will be less supply to meet new demand. Rents will rise significantly as there will be excess demand chasing fewer properties.The problem with this is that a lot of teachers, police, nurses etc ( traditional Labor voters) have invested in a single property to self fund their own retirement. Will be very interesting to see how these voters use their vote.
     
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  10. Bayview

    Bayview Well-Known Member

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    11. Want to turn the whole of Aus into a Country with no coal energy, highest cost, highest renewable energy target, most unreliable electricity supply, most unattractive for business investment and ongoing operation - just like South Aus.
     
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  11. Bayview

    Bayview Well-Known Member

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    Also, large number of vacant properties are holiday homes.
     
  12. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    If it was a free market as you say... There would be a free supply of land to build(no land banking scam) and No artificial land price bubble.
     
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  13. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    How does investor flipping each other existing property increase rental supply?

    Only new property investment increases rental supply.

    Investor flipping existing property to each other doesn't give full bang for NG grant in terms of economic outcome.
     
    Last edited: 15th May, 2017
  14. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    Investors buying existing property doesn't increase rental supply.

    Tax advantage to Investors buying existing property helps in jacking up the property prices, A jacked up price takes away a significant portion of disposable income just to service a loan leaving little or no spending power left with the family.
     
    Last edited: 15th May, 2017
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  15. MTR

    MTR Well-Known Member

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  16. Bayview

    Bayview Well-Known Member

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    Every year there are new investors who buy an existing PPoR from someone and turn it into their first IP (and more than first). That's how I started.
    This can increase the existing rental supply.
     
  17. TheSackedWiggle

    TheSackedWiggle Well-Known Member

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    And what happens to those whose PPOR is bought?
    Don't they need a place to stay? if so what is the net result?
     
  18. Bayview

    Bayview Well-Known Member

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    The ones that I have bought were a combination of events; a couple of the iP'S were older folks going into nursing homes, another was a couple going into a new, bigger house and land package from their small unit.
     
  19. dabbler

    dabbler Well-Known Member

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    Who says they will get taken up by investors ? we have been discussing for a while here now how there will be less investors...

    In fact the govt and regulators are taking steps so more home owners get a go, I am not here to argue the toss with you, but it will all depend on who takes up these places, if prices drop 10-30 % or whatever due to less investor demand say in Syd, there will prob be more owner uptake, that is the theory and what they are working toward.

    So yeah, you can add those things up however you want, myself, I do not know what exactly will happen, but I understand the basic concept.
     
  20. Drgonzo

    Drgonzo Well-Known Member

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    despite owning two investments, I think its about time property investors did some heavy lifting.

    its about time a concerted effort was made to slow down the seemingly mindless obsession with property as a source of wealth in Australia, it does nothing for the economy or the future of the country. sure its nice to generate a little income on the side, but its hardly a career (I don't apologise to those who have made a career from it).

    Government needs to encourage a greater proportion of capital to be invested in industries that will provide a future for future generations. it doesn't mean eliminating property investment as a source of income entirely, but there is far, far too much emphasis on it in this country.