Quote:
Originally Posted by Raptor
It's the negative gearing + capital gain tax discounts together. Investing is meant to be a risky business, the above policies have pretty much made it as safe as houses (see what I did there) for the past few decades.
Time for a major correction IMHO - driven by sensible policy adjustment.
If the above policies were meant to add to the housing supply - they have failed whenever an investors purchases an existing property (i.e. most of the time).
If the capital gains tax discount was to adjust for the erosion caused by inflation - why is it still so high whilst inflation is now so low?
Housing should be for living in, investors money should be spent on more productive assets.
Wonder why the retailers etc are doing it so tough, not employing anyone and generally grinding the economy to a halt? It's because after people pay for rent or their mortgage there's SFA all for anything else.
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You Sir, hit the nail on the head. I'm glad I'm not the only one that has a problem with a rampant speculative market on residential property