OK, anyone care to comment?
I overheard that in order to manage RealEstate government considering to make IP less attractive as investment by removing tax benefits (loss wright off) from IP property's. This way lesser number of investors will be attracted stabilizing or reducing $$$ of the housing.
They already introduces Capital Gain Tax on owner's occupied to stop people been creative.
Will they go further??
From what i understand the government tried this before by removing neg gear tax breaks. When they did everything went to s#!t leading them to reverse there decision. Also not everyone will buy a house with many just renting during there life.The government will not provide housing for everyone so who do renters rely on for housing INVESTERS. Many groups believe more needs to be done to bring investers back to property not drive them away.
With 65% of pollies owning negatively geared investment property, I can't see them all voting to remove the tax breaks. The last time they tried it was a disaster and took years to recover.
The above post is correct – remove the tax breaks, the investors get out of the market, resulting in far more people looking to the government to house them. They would be nuts to go down that road again, but who knows, the Kev and Julia show may be about to hit town…..
The only way the government will lessen the burdan off high prices off lower income families is by giving incentives to developers to develop more low income housing.
taking away the tax benefits means less investment dollars will flow into developments, less property available means higher rents. how would this help people own there own home.
low housing affordabilty is not somthing new, look at any big city world wide, try to see if the average wage earner can afford a 4 bedroom house in londan, new york, tokyo or paris.
Australian cities are now entering the age where they have grown to the piont where they will become unaffordable for the average wage earner to buy a home it's completely normal and unavoidable.
yes there was a time where even a low income could buy a 4 bed house on a1/4 acre block,…. but those days in the capital cities are over.
simple wrote:I overheard that in order to manage RealEstate government considering to make IP less attractive as investment by removing tax benefits (loss wright off) from IP property's.Who did you overhear?
Do you believe it likely? I sure don't. Not that it would worry me too much either way.
Don't waste energy worrying what might happen – either invest or get out of the way
Tysonboss1 wrote:The only way the government will lessen the burdan off high prices off lower income families is by giving incentives to developers to develop more low income housing.taking away the tax benefits means less investment dollars will flow into developments, less property available means higher rents. how would this help people own there own home.
low housing affordabilty is not somthing new, look at any big city world wide, try to see if the average wage earner can afford a 4 bedroom house in londan, new york, tokyo or paris.
Australian cities are now entering the age where they have grown to the piont where they will become unaffordable for the average wage earner to buy a home it's completely normal and unavoidable.
yes there was a time where even a low income could buy a 4 bed house on a1/4 acre block,…. but those days in the capital cities are over.
Spot on. I believe australia is entering a period where major city housing is for the well established investor or life long renter.
Same as many other major cities world wide.If they introduce such a fiscal policy it will give investors a buying opportunity as the market price drops and rents sky rocket upwards.
duckster, mmmmm……. this is what i am hoping for, together with another 3-4 cash rate rises by RBA. Won't be that a nice start?
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