Whereas our investment property is just pottering on. Slowing gaining value for the long term.
I hate renting. In a rental now. We are paying 2300/month in rent. It's ridiculous. Our loan repayments are less. I'd rather pay off my loan than someone else's.
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09-05-2016 22:23 #21
Last edited by Rose&Aurelia&Hannah; 09-05-2016 at 22:26.
09-05-2016 22:24 #22
09-05-2016 22:28 #23Senior Member
- Join Date
- Apr 2008
09-05-2016 22:29 #24
Lots of adf families we know can't afford to buy in Sydney or Melbourne. So they buy in Canberra, wagga, albury etc when posted there.
09-05-2016 22:32 #25
I wouldn't say it's "bizarre" moving cities/states in order to purchase an affordable property. it's definitely extreme though and I would say quite unfair. nobody should have to uproot their life just to be able to own their own home.
09-05-2016 22:32 #26
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09-05-2016 22:51 #27
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.
09-05-2016 22:58 #28
Sometimes I think investors are patting themselves on the back as if they're doing the renters a favour
09-05-2016 23:06 #29
I've voiced my opinions in another MG thread I started but I'll try to sum it up.
I agree with @Katie's mum, there are so many factors in housing prices. Getting rid of NG and reducing the CGD will not suddenly make it more affordable for renters to buy.
Demand far outweighs supply and this is IMO the biggest factor. Immigration rates are higher but development isn't keeping up.
Getting rid of NG and CGD will just penalise investors.
I think to make things fairer is limit the number of properties you can NG to 2 and keep the CGD at 50% for up to 3 properties, then scrap NG for 3 plus properties and decrease the CGD for 3 plus properties.
This way the govt pays out less come tax time, and mum and dad investors aren't penalised and they can continue to provide for themselves and their families into their retirement and reduce their reliance on the government in retirement.
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09-05-2016 23:08 #30
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
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