Mate ,,, do you actually understand negative gearing, it only works if you expect the capital value of the house to increase , spending &1 to save 30c or 45c isn't a good long term stratergy, been there done that. you missed the main point in Bunn-Wackett post, people want much more now in a house than what we got in the early 70's and I have built a few houses. The cost of the actual building isn't the major part in the capital cities , its the bloody land cost. Ask a developer how much it now costs to develop land compared to the 60's or 70's or even 80's , much more council imposed costs, these are recovered somewhere . I am intrigued by your apparent dissmissal of equity in investments, your comment on Univeral Traders post about share values highlights this. an investment of whatever sort held for a long time is an investment all the same and should be treated in a taxing sense , similarly.. The articles about Chinese investinmg in Australian property in the posts above mention LUXURY houses, not the housing you are referring to. Reduce govt rules in the rental market, make it easier for landlords to operate, land tax is another cost that wasnj't around in the 70's etc. we have it in Qld .,increase the land avalable with minimal council cost impositions so land value is reasonable , find some builders to build houses, they are becoming and extinct breed, encourage decentralization , hoese prices are very reasonable in the regions. However none of our state or federal governments can sort out the health system here so housing is IMO comingh a long last , after renewables LOL I own residentail and commercial properties so i believe I have a reasonable knowledghe of this subject.
