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Are rising Australian home prices good the economy?
http://www.shareswatch.com.au/blog/investing/are-rising-australian-home-prices-good-the-economy/
Often lost in the debate about house and home prices in Australia is the discussion regarding if our national obsession with housing is good or bad for the overall economy. Instead of rejoicing that residential real estate prices in Australia rose during the global financial crisis, maybe we should be looking a little closer at why prices are rising to see what problems this might be causing.
I am not going to touch on the subject of whether Australian home prices will rise or fall in the short to medium term or if housing is a good investment or not, since much of this has already been previously covered in a variety of articles which can be found on the Australian House Prices and Real Estate Discussion page of this site.
Paullie
I know enough by your comments.haha good for you mate, i wish you the best, but a lot of what you are lobbying for would be hard to get over the line.
Paullie
Time will tell.it will mate. may i ask, why are you lobbying for these? and how are you lobbying?
Paullie
Just a quite word here and there in the halls, a beer with a Polly or two and the usual chatter… nothing to worry about….hehe cool, im not worried, im in charge of my own destiny, dont need to rely on government policy.
I agree that creating price controls on rents is not the way to go. Gov't intervention in the market via price controls could stuff things up even more. I prefer policies that would increase supply.
Mattsta
I am suggesting only following natural disasters or in places declares 'boom' towns.
There are Gladstone residents now sleeping in the Town Show Grounds.I agree, all other rents should be by negotiation. I got a massive saving by asking for a 24 month lease at reduced rates. Funny thing is the agent did not want to present the offer. I pushed, the landlords loved it and I got it.
Paullie wrote:hehe cool, im not worried, im in charge of my own destiny, dont need to rely on government policy.Good idea, you can rely on governments to continue to make mistakes could be the only certainty, so better to focus on becoming wealthy and work with the environment you are given!
I'm a bit late, but….
Pauk wrote:I am lobbying for:1. CGT on the PPOR at 20% if sold under 10 years. (exemptions for legit reason to move. ie work family health etc)
Not a bad idea, but would never fly politically. And why give exemptions? As soon as you do that, you open the system up to all sorts of rorting. It has to be either all or nothing.
Pauk wrote:2. Land tax of 1.5%, all property, no exemptions (pensioners and other low income groups can accrue this until the house is sold)As mentioned previously, 1.5% is a hell of a whack. It's ridiculously high. Again, if it's ok slug this tax, then everyone pays. Allowing exemptions makes it look like some are getting a break.
Pauk wrote:3. Death tax of 20% on estates over $1million.$1 million is ridiculously low. Someone dying with $1m of assets isn't rich, not today. One million ain't what it used to be.
Pauk wrote:4. No stamps.You want to discourage specul;ation, but cutting stamp duty would INCREASE speculation, wouldn't it? No SD and extra land tax, would encourage buying and flipping.
Pauk wrote:5. Family Assist Part S (Senior) – A pensioner can sell up and the proceeds remain asset test free for the pension, if they move into another shared home. The family/young couple (need not be related) would get the rent tax free aand a $5k grant from the govt. We can not end up with 32% of our homes as lone occupants. That is a disaster We are currently at 22%.So a young couple gets rent and $5k grant for taking in their grandmother? Not sure why this is necessary. If people want to live by themselves than that is their choice, and it's cheaper for elderly people to live at home. (if they are able) This law would require lots of administration, which is expensive.
Pauk wrote:6. NG on new builds only.Hmm. New homes have greater NG benefitrs than say, a ten year old home anyway.
Pauk wrote:7. GST to 20% and the tax free threshold for wage earners raised to $40k. Increase welfare payments accordingly.This would kill retail. It's unnecessary, and people on $40k should be paying some tax. Why should they get a complete free ride?
Pauk wrote:8. Rent increases no greater than CPI +2% by law. Natural disasters aand mining booms are creating hugh rental stress.Would Council Rates and water rates also be capped?
Pauk wrote:9. Marriage tax rebate. For marriages over 10 years a 3% reduction/rebate in PAYG tax.Why 10 years? Sounds like Howard era social policy disguised as tax policy. Here's a better idea. Couples can put in a 'couple' tax return, rather than two individuial returns.
Pauk wrote:10. For someone who emigrated away from OZ and has been away longer than 5 years, their HECS debt get cancelled on their permanent return.Not necessary. They pay for their education like everybody else. They don't get a reqard for coming home, as you've suggested, they actually get a reward for going away.
Andrew_A, yep exactly.
Dan42, income splitting, thats how it should be. Basically we have a household income when it suits the government.
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