How can we get property prices down? Future generations will be screwed.
Why Are Houses So Expensive Here?
deme on 11/09/2021 - 12:35
Comments
Make investing in shares, productive investments, more attractive.
Because it's a great country and everyone wants to live here.
Used to be, now overpopulated and roads and public transport haven't been keeping up, in Melbourne at least.
Only good thing to come out of covid is WFH and much less traffic
negative population growth is the key to lower housing prices.
Is it though?
In the last federal election 2019, one of labour's key tasks was the removal of negative gearing. While I think it's a good idea, it was also a bad idea. bad idea in the sense that as soon as investors were spooked that NG was going to be removed house prices dropped (not a lot but enough to make investors worried and want to sell off).
As soon as labor lost, house prices went up!
I myself think NG should be restricted to a limited amount of investment properties per investor. For example if an investor was restricted to two or three properties. This will control the house prices as the investor will be restricted to how many properties they can buy. This will increase supply and reduce cost to new buyers. In addition the restricted NG will give an insentive to invest in housing yet not be so greedy!You don't want to affect the building industry, which is helping keep the economy moving.
One way: 200% tax on capital gains on housing, but adjust the price by 150% of any spending on improvements.
200% tax on capital gains on housing,
So If the price goes up $1 you get taxed $2?
What is 100% tax on 1$? It is $1 . So if you got 1$ in capital gains and you paid 1$ on tax. Your at the same point as you started! This will kill investing all together!
200% tax on capital gains
Prefect way to collapse the economy instantly.
Get rid of negative gearing
It's not that housing prices are up, it's just money being devalued
"will be screwed"
"are currently screwed, and have been for a couple decades already"***
Kill all the boomers and the market will drop.
We'd also stop using coal and actually try change things for the better.
But yeah, status quo so whatever.
Hasn't Billy Gtes worked that out already with a covid vax.
So does anyone think negative gearing is a good idea?
Investors do
The govt does. To pass the responsibility to investors by the govt not having to provide housing for the private rental market.
It's a great idea, think of it this way, once you have a house, if you look at getting a second one, it's really expensive, so by mitigating the cost of the investment, more people can buy in …
Get rid of negative gearing and you'd probably have to get rid of tax deductions associated with the cost of running a business and tax deductions for uniforms and all other tax mitigation strategies …
Charging more tax for foreign investors is a good way of reducing the demand (or do like China and make it so that foreigners can't buy properties here) because a great deal of the purchasers are from overseas …
Thankfully, COVID should kill a lot of people, which will reduce demand (and subsequently the price)
Get rid of negative gearing and you'd probably have to get rid of tax deductions associated with the cost of running a business and tax deductions for uniforms and all other tax mitigation strategies …
I'll stop you right there.
Negative gearing was restricted by a prohibition on the transfer of contingent property income and the property losses could not offset income from labour. [1]
If we went back to the original legislation the incentives would no longer exist.
because a great deal of the purchasers are from overseas …
Source?
Thankfully, COVID should kill a lot of people, which will reduce demand (and subsequently the price)
None of those things have happened.
so that foreigners can't buy properties here
I actually agree with this for other reasons but I don't think this will reduce prices
[1] http://www.austlii.edu.au/au/journals/UNSWLJ/1987/27.pdf
Where in the world we can find housing prices are steady or going down? Secondly will you live in that country/area?
People say that population started to decrease this year but they forget that immigration will resume next year and prices will still be high then.
Is just a matter of search extensively for a property you can afford and is acceptable and sometimes lower your standards, I have friends that earn more than the average income, spend a lot in a bunch of crap they can't afford or don't need and obviously have low savings but are picky in terms of the area they want to live in.
Less people. Stop adding more people.