Hi Everyone,
When I was reading R.Kiyosaki’s book “Retire young, retire rich” he wrote about the goverment giving massive loans (billions dollars) to people who wanted to develop low cost housing(housing commission style apartment blocks) for the community.
Is this the same case in Australia? Has anyone here done this or tried to achieve this?
Your thoughts and ideas will be much appreciated!
[buz2]Trisha
You mean – OUR – Australian government!?
LOL… [blink] [confused2]
Let’s not forget these are the same people who introduced the First Home Owner Grant – that kicked off the property boom, effectively driving up prices beyond the reach of most first home buyers…
The same people who recently introduced the new investor tax to “help” first home buyers (which is resulting in NSW investors passing on that expense to tenants in the form of increased rent)…
And the same government that then changed the First Home Owner Grant rules, so that folks must now live in their home for an entire year to qualify for the grant… And did this right smack in the middle of a property boom, so while the market is now cooling and properties now reducing in value – first home buyers are missing out a market they could have benefited from in just months by onselling and upgrading and now cannot – and – may even end up loosing equity value from their property…
Also the same government that has increased subsidised rent to 25% of your taxable income, to live in cesspool, slum area, government housing – making it no cheaper now to live in housing commission areas, than it is to rent privately.
Somehow, I doubt it. [angry2]
Allan.
Allan,
Think you may be confusing things a bit. It’s a long bow to suggest the FHOG caused the property boom – more like speculative investors and the FHOG was introduced as compensation for GST increasing housing prices.
It was the NSW govt who introduced the investors tax no the federal govt.
I think the rules were tightened rather than re-written to stop investors taking advantage of the FHOG. You know have to live in it for a period of time, where the previous wording left living there open to interpretation.
Subsidised rent at 25% isn’t something I know about but it sounds pretty decent to me. If your subsidised rent is the same as private rent maybe you earn too much to qualify for govt housing and it should go to someone who really does.
Originally posted by ANUBIS:Allan,
Think you may be confusing things a bit. It’s a long bow to suggest the FHOG caused the property boom – more like speculative investors and the FHOG was introduced as compensation for GST increasing housing prices.
Well, I didn’t exactly say that… What I said was, “kicked off” the property boom. (I’ve heard several people wiser than me say this, early on in the boom.)
It was the NSW govt who introduced the investors tax no the federal govt.Yep – both under the same banner in my book. : )
I think the rules were tightened rather than re-written to stop investors taking advantage of the FHOG. You know have to live in it for a period of time, where the previous wording left living there open to interpretation.Yep, I know that was their intent – but in our case, our income is so low we can’t afford to purchase in major areas. So we planned to buy in a regional area, move in, renovate, move out, rent it out, pay it off and rent ourselves elsewhere… Then continue this strategy until we could buy our own home in our preferred area – and get off welfare.
Their changes to the FHOG has ruined this for us.
Subsidised rent at 25% isn’t something I know about but it sounds pretty decent to me.Yes, it doesn’t sound that bad – until you see the slums you have to live in. : p
If your subsidised rent is the same as private rent maybe you earn too much to qualify for govt housing and it should go to someone who really does.Well, not all market rents throughout Australia are at the same level as say, Sydney or Melbourne. If we were in Sydney, our rent would be far below other rents in that area. But we’re not in Sydney. You still pay 25% of your income, no matter where you live in Australia… So someone can get a new brick property in Sydney, with roller door garage with internal access, cable TV & Internet – yet be paying the exact same rent as someone else with the same income living in a 1950’s slum that still has a flywire “meat safe” installed in the kitchen.
Anyway, enough of that – I need to focus on how to get out of the situation, rather than what’s wrong with it… : )
Allan.
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