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How to fix Australia's broken property market

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Your Investment Property | 18 Jul 2018, 09:29 AM Agree 0
Changing tax policies soon could save a decade's worth of wasted time
  • Jetie | 18 Jul 2018, 01:48 PM Agree 0
    The question must be asked why is home ownership decreasing markedly over the last decade.
    Firstly, the stamp duty ( let’s call it what it is - another unjustified tax ) on home purchase price needs to be lowered to nil gradually over the next 20 years. I’m certain tax authorities willeasily fill the revenue void.
    Australia and most other countries are failing the young aspiring home buyers. and if the ownership rates continue to fall then in 50 years we will see just two distinct classes of workers: the wealthy multi home owner and the poor renter.
  • Rick | 20 Jul 2018, 04:25 PM Agree 0
    Property ownership has declined because the cost is beyond most people to buy one. This will continue partly because of the high percentage of the wage packet that is committed expenditure like car payments, phone costs, internet and transport fares. Also the investors are undermining the rental situation. rental houses are not investments. Tenants are customers and the funds used to operate a rental property business requires the purchase of a capital asset. Nobody would invest in a bulldozer to run an earthmoving business!
    • Jetie | 21 Jul 2018, 03:19 PM Agree 0
      Rick. Fortunately, the investor landlord has always kept the rental pool supplied with available homes. Without these private owners rents would rise considerably due to scarcity. Our governments do not wish to be landlords as was the case in the 1950s.
      These private landlords receive tax concessions BUT they must also pay CGT (capital gains tax) when the home is sold - sometimes hundreds of thousands of dollars. This tax was legislated in 1992.
      Landlords need to be thanked & not derided.
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