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    as royally fucked as it is today for the current generations i think on the whole if you are a working schlub you're gonna have a hard time and you're gonna have to slog your cunt out or find alternate means to get where you want to be.



    www.holditflat.com

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      Originally posted by CA18escort View Post
      Surely it is a case of supply and demand though? The houses are selling some someone has the money. Increase supply would certainly seem to make sense but I am not sure that developers would be keen on cutting margins....
      There has been ample supply added to the Sydney market in the last 5 years in terms of development hasn't stopped prices climbing.
      If in doubt power out

      Comment


        Supply is a two pronged problem: houses/units to actually buy, and then those houses actually being available to owner occupiers. Because real estate has favourable status as an investment, people who'd like to buy houses to live in themselves get priced out of the market by investors with greater buying power.

        IMHO it should be a basic principle that a family with a median household income should be able to buy a property worth the median price.

        Comment


          Simple fix. Remove negative gearing tax concessions from existing dwellings. Only allow negative gearing on new dwellings.

          Shouldn't have any affect on the building sector, in fact may drive more building. But will leave a portion of the market for home owners (and positive geared investment).

          Comment


            The whole idea of needing a deposit to buy a house is antiquated and needs to go. I don't need a deposit to buy a car, TV etc. And houses are much stronger investments. If you can prove you can make the mortgage repayments for the sum you want to borrow, then you should be given the loan. Worst case they foreclose. In a rising market it's a minimal risk for the bank to take.

            Comment


              There is a lot of sense being spoken in this thread today

              Keep it up fellas

              Comment


                Originally posted by The Panda View Post

                Click image for larger version

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                Where are interest rates on that graph, I can't see them?

                Comment


                  Originally posted by Shane001 View Post
                  Simple fix. Remove negative gearing tax concessions from all dwellings. Only allow no negative gearing.
                  .
                  That would be a better option.

                  Although Howard's battlers will be up in arms about it.....

                  Comment


                    Originally posted by PXL265 View Post

                    That would be a better option.

                    Although Howard's battlers will be up in arms about it.....
                    Problem is that would never get passed. I think Labour tried that last election. Plus it would have a negative effect on the building sector, which is a major driver of the economy.

                    Comment


                      Originally posted by Shane001 View Post

                      Plus it would have a negative effect on the building sector, which is a major driver of the economy.
                      Would it though? Total demand for houses would be the same - it's just that instead of (say) 50% owner occupier, 50% investor it might be 80/20.

                      Or do you mean building industry profits might decline if investors aren't pushing prices up?

                      Comment


                        Have less people instead
                        simples no new laws required
                        Originally posted by Walt Kowalski
                        Memes are only detectable by NSA.

                        Comment


                          Originally posted by Captain_Slow View Post

                          Would it though? Total demand for houses would be the same - it's just that instead of (say) 50% owner occupier, 50% investor it might be 80/20.

                          Or do you mean building industry profits might decline if investors aren't pushing prices up?
                          A large part of the housing market is negative gearing investment. If you took that away completely yeah I think it would have a negative effect on the building industry.

                          Also possibly result in rents going up over the medium/long term as less new rental properties available. However this would be offset by more people being able to purchase due to a probable drop in house pricing.

                          Comment


                            Originally posted by Shane001 View Post

                            A large part of the housing market is negative gearing investment. If you took that away completely yeah I think it would have a negative effect on the building industry.
                            Is it really with rates as low as they are now?
                            If in doubt power out

                            Comment


                              Originally posted by Rona View Post
                              Is it really with rates as low as they are now?
                              Good question, making an assumption on my part. Though I expect it still is. You often hear of home buyers being outbid by investors.

                              Remember interest rates are low, but potentially so are rental yields.

                              Comment


                                Originally posted by Shane001 View Post

                                Good question, making an assumption on my part. Though I expect it still is. You often hear of home buyers being outbid by investors.

                                Remember interest rates are low, but potentially so are rental yields.
                                I did some searching but the most recent numbers were from 2019, negative gearing as a % of investment properties was at it is lowest level since 2003. Fair to say with rates dropping significantly since then it's now at much lower levels.
                                If in doubt power out

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