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  1. #31
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    Quote Originally Posted by delirium View Post
    LL's get to charge what ever they want, knowing people will pay it.... which then means that family can't afford the deposit and around and around it goes.

    LLs can only charge what they want in a market where demand for rental properties exceeds supply- and by extension, the more property investors (and hence rental properties) there are, the lower rental prices will be.

    The solution to increasing first home ownership lies in tweaking the supply side of the equation, not the demand side.

    Now, excuse me (a self-admitted property owner) while I twirl my long moustache, laugh cruelly and tie a helpless maiden to the train tracks...
    Last edited by Gentoo; 29-07-2014 at 16:43.

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    Quote Originally Posted by Gentoo View Post
    LLs can only charge what they want in a market where demand for rental properties exceeds demand - and by extension, the more property investors (and hence rental properties) there are, the lower rental prices will be.
    Demand does exceed supply though, that's my whole point. Average families cannot afford to buy anymore so are forced to rent. My RE told me that have way more demand than supply and simply cannot keep up. Rent has gone through the roof the last 5 years. You either pay the inflated prices, or live on the street. And there is no hope of saving for a deposit with rental prices so we are stuck renting.

    And it has been documented in finance journals that the reasons for the huge demand in rent, is no one can afford to buy bc investors have pushed prices up. Someone had a threads here months ago with a story about it.

    Giving investors more loans to rent out isn't the answer. The answer is the opposite. Give average families the opportunity to buy which will bring down rental prices for those that will always rent bc demand is lower. More people own. The problem is that house prices are so sky high it's reached the point of no return. Even if it remains static it's still too high for many.
    Last edited by delirium; 29-07-2014 at 16:50.

  3. #33
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    Quote Originally Posted by cakester69 View Post
    Just heard on the news there are plans to allow first home buyers to access their super for a deposit why can't they allow this for anyone who is buying a home obviously it has to be a home you are going to live in and it's your only home. I have a nice deposit sitting in my super account would be nice to access it and get out of the rental cycle.

    Sent from my GT-I9507 using The Bub Hub mobile app
    This is still pie-in-the sky at this stage. Nick Xenophon will be tabling it at Parliament soon. Currently it is a model used in Canada though.

    However, the issue still is that once you are over say the age of 35, it may not be an option for you. The average mortgage is 25-30 years. Retirement age as it currently stands is 65 years. If you put your super into a mortgage deposit at 36 years old, then theoretically you will still be paying it off at 66 years old, once you have already 'retired'. The banks will want guarantees that mortgage will be repaid before you retire, otherwise they won't do it. Do you see the problem I am getting at? Therefore, it also has it's own limits. A good idea though.

  4. #34
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    Quote Originally Posted by Gentoo View Post
    LLs can only charge what they want in a market where demand for rental properties exceeds supply- and by extension, the more property investors (and hence rental properties) there are, the lower rental prices will be.

    The solution to increasing first home ownership lies in tweaking the supply side of the equation, not the demand side.

    Now, excuse me (a self-admitted property owner) while I twirl my long moustache, laugh cruelly and tie a helpless maiden to the train tracks...
    Investment only drops rents if the prime motivation for investors is to rent the property out. With huge increases in value each year many investors simply park their money in property, leave it vacant, sell for a huge profit and pay half the tax that would otherwise be due on their windfall. Huge price appreciation in property accelerated when the Capital Gains Tax was altered to allow this. In some inner city areas vacancies for flats are around 10% and that hasn't led to any rent price drops.

    I agree that supply needs to increase but we also need to fix the system to stop tulip-style property speculation.

    Get rid of CGT concessions, cap negative gearing or only allow it on new builds and then house prices ... and rents ... will drop.


 

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