We have all been indoctrinated on owning a house and it will always increase in value.
That is why everyone goes crazy at auctions and pays too much for all housing. We have never purchased at auction, only sold, relying on the stupidity of buyers to go crazy and keep on bidding. Now if Banks refused to lend to those who can afford it then things may be different, but who do you think supports that? No-one !
I just think you need to lower income tax rates and limit negative gearing to Australian shares and new property.
So working people put their investment dollars towards productive endeavours instead of pricing others out of a home.
Because the current tax system encourages an unhealthy Ponzi like scheme.
And do what Victoria is doing and raise land tax to prompt developers to build it or lose it(sell it)
I agree with lowering income tax rates, though if we want the sort of social services we enjoy in our system instead of a user pays style US system, the money has to come from somewhere. Increasing GST is probably the only way we can lower income taxes and keep social services.
As for removing negative gearing for second hand housing, second hand housing will still be a more attractive option for most housing investors. If you buy in the right markets, you’re usually not benefiting from negative gearing after a year or two. Even in an average area for second hand housing, you’d stop receiving benefits from negative gearing after 6-7 years.
New housing and the associated tax breaks are most attractive for higher income earners.
That’s fine. But right now investors are willing to pay overs for a lousy return to speculate on capital gains in the long term.
Because it’s tax effective to do so many take that option instead of paying income tax.
And if you remove that and add land tax to an asset with a pretty average return?
Well I think you get a much more subdued property market. One that runs in step than far ahead of wages.
Thats all most people want. To be able to work hard, see their salary afford them a roof over their head.
Because the #1 thing for a secure, safe and comfortable retirement/old age, is to own the roof over your head.
Thats being stolen by design of government policy.
People just pay too much for houses, and it is not just investors. I have watched enough auctions over many years to how crazy bidders get, and they get lent 100% of the cost.
Buying extra houses is optional for an investor.
Maybe if the government didn’t screw us over constantly there would be better ways to invest or make money and we wouldn’t need to buy extra investment properties
Oh buy them. (Existing homes) The practice just shouldn’t be subsidised but it is.
The wheels turning though. I’d say with a combination of land taxes, income tax cuts and capping out superannuation benefit will mean people will look elsewhere. Just won’t stack up for a property investor.
I’ve got a mate who cashed out of property.
He loves renting, instead has millions in the financial markets and according to him outperforming Australia best property market.
Anyone in here ever bought a prefab home? I have just started researching them and their designs look way more interesting than those of regular builders.
If you mean a kit home, then I helped a Mate put one together and it was actually easy and fun.
There are some great design around which have nice features and some are modular so that you can extend easily. And mostly the kits prices are very attractive.
A cheap house financed by petrodollars and built by an imported slave force? YES Please. Where do I buy? Sign me up.
Lozzy B doesn’t like the Idea of cheap housing.
She’s being silly.
The workers from India will live in the tents whilst they build fat Australians their homes.
Lozzy B’s moniker TruthFairy is apt.
Cooker of the highest order
I have no idea who Lozzy B is.
Sounds like a failed Spice girl wannabe.
I need some advice….
Bought a property to live and am using a conveyancer. Lucky enough to not need a mortgage (sold previous family home and downsizing) . Conveyancer asked to put 900k into company trust account 4 days prior to settlement date. I feel uncomfortable doing this. (Life savings) Conveyancer has good reputation. Has 5 million in Prof indemnity too. Are these trust accounts safe? What alternate options could consider? Cheers in advance . Bish
Trust accounts are safer than regular accounts, they are used specifically for these reasons. As a professional service provider, they must be fully documented and audited.
Obviously in your case, as there is no finance, they need the cleared funds ready in advance.
However, with some of the real estate scams out there, call and confirm the account details on their general number.
Has this Conveyancer been around long ? Call the Bank and ask about them to be sure.
Six months ago I was in the exact same situation - selling my house to downsize to another. My advice is: if you don’t know the conveyancer already and therefore can’t say if he’s reliable, stuff him - go with a reputable solicitor, recommended to you by someone you trust.
I did similar and the bank grilled me on who is the conveyancer, where did you find out about them etc. Fortunately the conveyancer was across the road from the bank and already known to the banker
