Forum Replies Created
- personal tax rates should be aligned with corp tax rates, CGT concessions are distorting the economy and should be abolished, the states need to be pulled into line and have stamp duty and other rubbish taxes removed.
I couldn’t agree more.
I think it would be fair to reduce the top marginal rate to 30% and scrap all neg gearing benefits.All gains and income taxed at the marginal rate.
I couldn’t agree more … although I doubt a 30% top marginal rate is affordable, more likely 35% across the board for company, personal and cap gains. Frankly, I don’t care what rate is as long as they are all the same, thereby removing the incentive to corporatise or capitalise person income.
If you stop negative gearing, apart from the ass end falling out of the property market…Ahh … but I see that as a good thing!
Talk about a step back to the dark ages!…If there’s one thing that belongs in the dark ages, its our current tax system.
a lot of the problems with the property market stem back to the whole negative gearing situation.Finally we agree on something. This outrageous rort should be abolished immediately!
What are your thoughts on personal income tax rates, company tax rates, capital gains tax rates, depreciation etc etc?
I wish that there was an ignore facility on this forum because the amount of negativity coming through is disheartening.But, but … you love it when “the US stock market is in a downward trend”. Well I love it when the Austrlian property market is in a downward trend! It means those poor first home buyers will finally be able to buy something, and the rest of us can trade up to better houses. The only losers are the speculators.
In hindsight (and isn’t hindsight wonderful) the time to buy real estate (pretty much anywhere in the world) was after the tech wreck in 2000. Central banks around the world were lowering interest rates rapidly and a lot of money was coming out of the stockmarket and looking for a “safe haven”.
really?? wouldn’t be a very successful agent – there is no market if nobody sellsAUSPROP, I’m not sure I understand your comment, however I defy you find a real estate agent who will tell you right now is not a good time to buy. Comments I’ve heard recently; “get in now, its a buyer’s market”, “buy now, because prices will bounce back in the spring” … I’ve never heard “hold off for 12 months, prices are falling and may fall further”
I have never had a time when someone has told me “now is the time to buy”.Funny, because I’ve never met a real estate agent who hasn’t told me “now is the time to buy”.
Seriously dmichie, how many doom and gloom threads do you want to start?There are so many gloomy news stories ATM, I reckon I could post 2 or 3 a day [biggrin]
So if you’d bought Microsoft, Intel and Cisco (all blue chip companies) every month from say April 2000 until April 2003 you’d be ahead?
If you want negative equity in your property for a decade buy now! Better still, borrow 110% and get an interest-only loan. No-one needs to repay debt anymore, its a “new paradigm”
There is a strategy commonly used by medium to long-term share traders called ‘dollar cost averaging’.Would dollar cost averaging have worked with Nasdaq stocks if you’d started at the top of bubble? Of course not. Standard investment strategies break down in a bubble because the market is behaving irrationally.
All the fundamentals (rental yields, house-price-to-income ratios etc) point to the fact that the housing market is irrationally overvalued at the moment.
Poor didums, did you miss the boat? Never mind, better luck next century.No didums, I didn’t miss any boats. I bought in 1993.
Bring on the doomIndeed, bring on the doom. We need a good old-fashioned recession to cleanse the economy of excesses of the real estate mania.
There should be some good buying opportunities a few years from now when everyone is talking about tech stocks again, or resources, or whatever the next fad is.
cmon – that’s hardly weak….What planet are you on exactly? Have you looked at a chart of the USD vs any major currency over the past three years? Downhill all the way baby. That’s what happens when you have stupendous CAD and a horrendous budget deficit.
benefits of a strong currency:
weeds out the exporters that can produce commoditites the world wants rather than just what the world can affordI hope you meant products rather than commodities, because one of Australia’s big economic problems is we only export commodities rather than more sophisticated products and services. This is the main reason why the AUD is so high at the moment – because commodity prices are high, due to demand from China.
dmichie – I think you should volunteer to devalue your bank account against mine. Then I can pay you to work 60 hours a week and I will cut back to 30 hours a week.If the AUD dropped by 50% tomorrow my income (in AUD terms) would double. So yes, I’d be more than happy for that to happen.
– lazy exporters can make a saleLaziness works both ways. A strong currency means imports are cheap. Its much easier for a local business to simply import a product rather than develop and manufacture the product locally. Eventually you end up with an economy where nothing is produced locally, and our export income depends on good prices for stuff we dig up out of the ground. Problem is, commodity prices are notoriously volatile and when commodity prices fall, we will have no export industry and CAD of mammoth proportions.
can you think of a leading OECD country that has a weak currency?THE UNITED STATES OF AMERICA
Come on mate!!! Things are very different now. It is a global economy. I strongly believe Australia’s debt levels are easily sustainable.That’s just babble. You haven’t provided any reason or evidence that our debt levels are sustainable, apart from your “strong belief” and “its a global economy”. In fact, as global interest rates rise, our external debt becomes less sustainable.
What do you think would happen if the dollar did drop to levels you were content with?70c is the average since it floated. I reckon 65c is about right.
Don’t you agree the CAD would blow out?A lower dollar means fewer imports and more exports. Look at chart of the CAD over the past decade. It was less than $3B in 2001 when the AUD was low. Since the dollar began rising,
its blown out to >$16B.It’s a tragedy when a supplier’s products are so unattractive to buyers that the only reason someone would purchase them were if they were cheap. I belive a storng currency and a good product are a better outcome.Tell that to a farmer then run!
Look mate, a strong currency might be great for the consumer, the Harvey Norman’s of this world, and the property market, but its an absolute friggin’ tragedy for the real heroes of the Australian economy, our exporters.
In short, a strong dollar makes imports cheap, kills the competitiveness of our exporters, and makes Australia lazy. Eventually the markets will punish us.
The CAD this quarter is tipped to hit 7.35%-7.55% of GDP. That is far worse than when Keating famously described Australia as a “Banana Republic”. Yes, we should all be very worried.
http://www.henrythornton.com/article.asp?article_id=3275I would like to see results if the property only grew at a rate of 4% per annumI would like to see these figures if the value of the property fell at a rate of 5% per annum over five years.
(Yes, I know this cannot possibly happen)
Not wanting to be too pedantic, but “north shore” and “northern beaches” are two completely different places.
I’m not looking on the north shore no. Why the fascination with who I am, what I do, and what I’m looking for?
As I said, contact me at the address I posted and we’ll continue the conversation there.
dmichie, is your name David from the North Shore?Nice try, but no. If you want to contact me, email the address I posted above.
