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This is so on point. The entire economy seems to be driven by housing in Australia. Its a massive ponzi scheme with developers making the big bucks and the ta

by dmagee 10y ago

This is so on point. The entire economy seems to be driven by housing in Australia. Its a massive ponzi scheme with developers making the big bucks and the tax system geared to assist investors at the expense of first home buyers. If housing crashes there will be a lot of very angry people in this country. Developers and governments need to wake up.

hackits 10y ago
Wait until the May 2017 budget. The government may announce co-payment or tax incentive to keep the system going. For my situation I will jump and purchase a new house if I can deduct interest repayment from my taxable income. It would level the playing field where as a investor you can deduct interest repayments from their taxable income but as a owner occupier you cant. I get a bit emotional about this because I went got a CS degree in 2000 and my colleagues quit high school at year 10, and purchase a house in 1998 for $80,000 and in 10 years time that same house was now worth $450,000. In that time they've leverage themselves with 2-3 investment properties. They pay less tax than I do and simply because they got in before the massive housing boom. Yes I'm pissed about the whole situation.
- hackits 10y ago
  Turns out the May 2017 budget has been announced and the headlines are: `The federal government has given the go-ahead for a scheme in which the private sector would be given access to cheap capital in return for building more community housing.` So no alteration to stamp duty, negative gearing, or capital gains tax discount. Oh well....
gech 10y ago
Is there a good list of names being kept?
astrodust 10y ago
"If" housing crashes? There is no "if". It is always a matter of "when".
- hackits 10y ago
  You don't know Australian psyche that housing double's in price every 7 years and the safest investment you can ever make and you will never lose money. Idiotic, illogical, but that's the country I live in.
  - astrodust 10y ago
    I'm living in a bubble too where people's memory of the mid 1990s when things went to shit, and the mid 1980s when things when to shit, and the 1970s when things went to shit are gone. The US had a wake-up call in 2008 that a lot of countries missed. Canada snoozed right through that and went on trucking like we'll never have to deal with a downturn. That's why creaky, practically condemned houses are selling for over $1M: http://www.theglobeandmail.com/real-estate/toronto/a-million-dollars-now-buys-a-tear-down-in-torontos-greektown/article33957589/ http://www.theglobeandmail.com/real-estate/toronto/a-million... It's "detached" so it's obviously worth a million bucks since that's the average price of these things now. What if that house goes for $2M? $5M? $20M? The bubble must give out at some point. Those prices will not keep going up forever.
    - hackits 10y ago
      What do you mean it had a wake-up call in 2008? Looking at the data its surpassed 2008 prior levels! https://mhanson.com/2-1-hanson-house-prices-main-street-bubble-1-0-echo/ https://mhanson.com/2-1-hanson-house-prices-main-street-bubb... It's like the world collectively said `Yeah this is bad, lets do exactly the same thing but BIGGER!`
      - astrodust 10y ago
        Tech securities and real-estate prices have been pretty bonkers lately. If those two things implode something else will bubble up instead. It's like there's too much money in the world or something. This is like trying to get rid of a big bubble in a waterbed. Once you think you've jiggled it out of existence it just comes up somewhere else.

by dmagee 10y ago

hackits 10y ago

Wait until the May 2017 budget. The government may announce co-payment or tax incentive to keep the system going. For my situation I will jump and purchase a new house if I can deduct interest repayment from my taxable income. It would level the playing field where as a investor you can deduct interest repayments from their taxable income but as a owner occupier you cant. I get a bit emotional about this because I went got a CS degree in 2000 and my colleagues quit high school at year 10, and purchase a house in 1998 for $80,000 and in 10 years time that same house was now worth $450,000. In that time they've leverage themselves with 2-3 investment properties. They pay less tax than I do and simply because they got in before the massive housing boom. Yes I'm pissed about the whole situation.

hackits 10y ago
Turns out the May 2017 budget has been announced and the headlines are: `The federal government has given the go-ahead for a scheme in which the private sector would be given access to cheap capital in return for building more community housing.` So no alteration to stamp duty, negative gearing, or capital gains tax discount. Oh well....

gech 10y ago

Is there a good list of names being kept?

astrodust 10y ago

"If" housing crashes? There is no "if". It is always a matter of "when".

hackits 10y ago
You don't know Australian psyche that housing double's in price every 7 years and the safest investment you can ever make and you will never lose money. Idiotic, illogical, but that's the country I live in.
- astrodust 10y ago
  I'm living in a bubble too where people's memory of the mid 1990s when things went to shit, and the mid 1980s when things when to shit, and the 1970s when things went to shit are gone. The US had a wake-up call in 2008 that a lot of countries missed. Canada snoozed right through that and went on trucking like we'll never have to deal with a downturn. That's why creaky, practically condemned houses are selling for over $1M: http://www.theglobeandmail.com/real-estate/toronto/a-million-dollars-now-buys-a-tear-down-in-torontos-greektown/article33957589/ http://www.theglobeandmail.com/real-estate/toronto/a-million... It's "detached" so it's obviously worth a million bucks since that's the average price of these things now. What if that house goes for $2M? $5M? $20M? The bubble must give out at some point. Those prices will not keep going up forever.
  - hackits 10y ago
    What do you mean it had a wake-up call in 2008? Looking at the data its surpassed 2008 prior levels! https://mhanson.com/2-1-hanson-house-prices-main-street-bubble-1-0-echo/ https://mhanson.com/2-1-hanson-house-prices-main-street-bubb... It's like the world collectively said `Yeah this is bad, lets do exactly the same thing but BIGGER!`
    - astrodust 10y ago
      Tech securities and real-estate prices have been pretty bonkers lately. If those two things implode something else will bubble up instead. It's like there's too much money in the world or something. This is like trying to get rid of a big bubble in a waterbed. Once you think you've jiggled it out of existence it just comes up somewhere else.