As reported in the Rage and SMH, amplifying that shoe box appartments built for transient singles are housing, not homes for families.
The comments under the articles make for interesting reading.
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Forget the “Sea Change”
If the insurance company doesn’ t get you, the Government will.
I was party to discussions about the effect of sea level rise to the East side of port phillip bay.
Between Mordialloc and Frankston, the old wetlands will be wetter and eventually go under.
Dont go there.
Buyer beware, this property sits astride the Selwyn fault.
I dunno, but I think anyone investing in the construction of a new home should get a big slap on the back.
That’s the problem right? There isn’t the investment there needs to be into making new stuff.
Theres got to be a proportion of rentals where people need to rent.
Like around Universities(for students) or on public transport(for say temporary workers)
Where frustration boils over is when someone’s looking for a roof to put over their own head they line up in competition with someone who will rent it out.
Given the latter is going to get income from the property and can pay for finance costs before tax, and thinks how they will be taxed less on the profit selling it than their income tax at the time.
Oh and put it into their superannuation as another possible tax break.
No wonder I think think the struggling first home buyer has just had enough.
Property investment is great, it can create more homes, create real wealth, provide rental accommodation where it’s needed - but property speculation isn’t.
And I think there’s a difference.
What is the difference ?
Buying property merely for the capital gain it might provide rather than an investment that stacks up and provides a yield.(eg a rental property).
The tax system encourages investors to pay higher prices than they otherwise would locking in terrible yields.
It doesn’t keep rents down it just increases prices.
Its really almost a form of a Ponzi scheme.
We pay far too much income tax in this country so it’s only fair that people buy multiple properties and resort to other means to try and mitigate the tax burden.
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Won’t argue the point on that, except that Company Tax is too low and there are too many ways to legally avoid paying any tax.
You do realise that one reason taxes need to be high is because forgone revenue from such strategies.
The point of tax concessions is to encourage behaviour. Not for you or anyone else to just “save on tax”.
That behaviour is questionable when it makes the investment itself less commercially viable.
The reason we have tax concessions on EVs? The environment.
The reason there are tax incentives for say mineral exploration? Potential Business development.
The reason there are tax incentives to prioritise one group of property purchasers over another on an existing property?
We’ve one of the lowest rates of income tax in the developed world. I’ve lived in Ireland, England, France and Japan. I paid income tax at a higher rate in all of them than I’ve had to pay here.
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Absolutely correct, but no doubt there are tax lurks that some can use that most cannot.
Family Trusts are a key example. family trusts mostly operate as a Pty Ltd business and have all the perks that a business has, and yet they can claim CGT concession, when many property investors use a Family Trust as their financial vehicle. While the initial concept of a Family Trust make have been reasonable, it has allowed all sorts of people to take advantage.
GST is another, as anyone who is GST registered gets to claim back GST on eligable expenditures. People doing the same job, not GST registered cannot do this.