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  1. #31
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    Quote Originally Posted by BigRedV View Post
    Sometimes I think investors are patting themselves on the back as if they're doing the renters a favour
    Not patting their : our backs, but it's a fact. You need investors so people have places to rent.

    I think it comes down to people's attitudes really. I think everyone deserves a clean, warm and safe environment for themselves and their families to live in. But when did it become a right to own a house? I believe it's a priveledge.

    If people are all of a sudden unable to rent because it's too expensive then I see that as a problem to be fixed, but penalising investors will just make rents go up, so this NG talk isn't going to solve the housing 'crisis' or making life all of a sudden better for renters, it is SOOOO much bigger than that.

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  3. #32
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    Quote Originally Posted by delirium View Post
    It's the chicken before the egg though isn't it. We know the reason demand for rentals is so high bc in part the insane house prices. So investors have actually created a climate where the average joe can't afford to buy, then to add insult to injury then charges them crazy rent so they can't afford a deposit! Bc if you won't pay it, the 30 other families behind you will.

    There will always be a need for rentals for lots of reasons. I argue though that rather than LL's doing some kind of community service, they are a big the reason there is such a need to begin with
    I think you will find higher immigration levels causing a housing shortage has had more of an effect than 'greedy investors'

  4. #33
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    I could really say more about what the governments can do to increase housing supply, but I won't, I'll just say we need to dramatically increase supply to make housing more affordable. There's other changes to make too but I believe this is such a large part of it.

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  6. #34
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    The issue isn't really supply. It's cost. Not only is the principle crazy now, the deposit is almost unobtainable.

    Where I live there is way more houses on the market than rentals. There is plenty of supply.

    I would also argue in urban areas where supply may be lower that it is investors buying the homes first time owners would have bought. So low supply doesn't necessarily prove lots of people are still entering the first time market. It just means those houses are being snapped up by mum and dad investors who are using the equity they have in their existing properties.

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    There had also been a lot of overseas investors buying property in Sydney and Melbourne.

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    I will add before crashing, that this topic is a point of contention for me atm. A few family members I have, that despite consistently making sh*t financial and life decisions have had Mummy and Daddy giving them the deposit, or falling into money they haven't earned. Then carrying on to me how NG should be their god given right and they can't help it if ferals can't buy bc they don't manage their money properly

    My eye has been twitching furiously of late at the irony of that statement ^^
    So my narkiness is really a personal one atm as opposed to hating investors overall....

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  10. #37
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    Quote Originally Posted by BH-KatiesMum View Post
    If there are no investors, there are no houses to rent ...

    I agree with those who say the whole housing market is much more complex than simply 'negative gearing is raising housing prices'. Interest rates, the mining boom, the first home buyers grant, immigration, capital gains tax discounts and the stability of the housing market over the last decades all contribute to our increased housing prices.

    The thing is - now that prices are this high - the government cannot afford to let it just plunge. super funds, construction industry, banking industry, real estate industry and other follow-on industries will all feel it ... and therefore the entire economy will go into further recession.

    The government must be fairly careful about stabalising it and letting it fall very slowly - or stay stable for a number of years to let the rest of the economy catch up.

    But that is a balancing act - and messing with negative gearing, and removing chunks of the buyers from the market is risky.

    There are a lot of differing experts who say directly contradictory things about what the impact would be.
    You have hit the nail in the head perfectly.

  11. #38
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    Default Housing / negative gearing / politicians

    Quote Originally Posted by A-Squared View Post
    Not patting their : our backs, but it's a fact. You need investors so people have places to rent.

    I think it comes down to people's attitudes really. I think everyone deserves a clean, warm and safe environment for themselves and their families to live in. But when did it become a right to own a house? I believe it's a priveledge.

    If people are all of a sudden unable to rent because it's too expensive then I see that as a problem to be fixed, but penalising investors will just make rents go up, so this NG talk isn't going to solve the housing 'crisis' or making life all of a sudden better for renters, it is SOOOO much bigger than that.
    So it's not a right to own a house, but those who are privileged enough to own more than one should have the right to negative gearing and capital gains? Rightio. LOL

    And you have said that in the past that you are investing in property to set yourself up for retirement and help your children. I get that as we will be doing the same. But don't make out you're doing some sort of favour or community service to those people who can't afford to buy.
    Last edited by BigRedV; 10-05-2016 at 05:52.

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  13. #39
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    I think people should be able to negatively gear 1 property only, and only if they don't own the property they live in.

    Watch houses become more affordable once people aren't allowed to amass a property empire on the taxpayers dime.

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    Default Housing / negative gearing / politicians

    Quote Originally Posted by delirium View Post
    I think it's the opposite. Interest rates are low bc prices are so high. The economy is very sluggish and they are trying to level out the effect of the ridiculous housing prices.
    The RBA doesn't use monetary policy to affect house prices. RBA raises or lowers interest rates purely for the purpose of manipulating inflation. When the economy is doing well, inflation is high so RBA raises interest rates to reduce inflation. The economy is doing badly right now, GDP low, and we are pretty much going through deflation at the moment. This is why they have reduced the cash rate consistently to the lowest it has ever been. Absolutely nothing to do with housing prices. The effect on housing prices is an unfortunate consequence, but not an intentional one.

    ETA - and incidentally, in the past couple of years as interest rates have declined, housing prices have significantly increased. Whether it's because of interest or a combination of other things is a question for the economists.


 

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