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House price boom must end, says David Gonski, page-71

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LongNow

1,365 Posts.

06/09/14

00:38

Post #: 13933747
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Originally posted by acorn ↑

Interesting that you don't see the need to quote real statistics yet you like to suggest that mortgages are 70% for people in ' bog ordinary houses far from cities ' .

Like to give us a few examples of those ' bog ordinary houses ' ?

All these unproductive properties . You mean the ones that renters utilize ? Where would they be living otherwise ? Are you saying that providing housing , whether new or old , is not providing a service ? Oh that's right , property investors are keeping them out of the market .
The funny thing is that there have always been renters . Even before negative gearing . There has always been that demand , long before it became popular for ordinary mums and dads to invest in property .

I'm not the biggest fan of re agents however they do provide a service whether you like it or not . These days there are alternatives if you don't want to use them . As for commissions , there are lots of people who make a living that way . Pretty much all salespeople . Are you going to have a crack at them as well ?

Tax and negative gearing . So you're critical of people who are using a legal tax office approved system to assist them in securing their future by hopefully increasing their wealth ? These are people who work harder or longer in order to earn a bit more than the average . Then , instead of blowing the cash , they choose to take a bit of a risk and borrow more money to buy an investment property so that someone can rent it . We all know that the government is struggling to support pensioners and this is only going to get harder as time goes on . Anyone that invests in their future , however they do it , gets a big thumbs up from me .

I would much rather see everyone own a home . I'd like to see everyone have a job . I'd like to see people pay tax all their life and then receive a guaranteed comfortable pension with great healthcare in their retirement . How much better would the country be if that were the situation ?

But , unfortunately , that's not the case .

As for being defensive of the industry . As previously disclosed , I use the services of that industry . Probably qualifies me a bit better than you to comment given that I have clearly more experience in using that service . While it has it's problems and shonks , it is totally unfair to suggest that everyone in that industry is a crook lining his nest with easy commissions . It would be the same as suggesting that all people on welfare are bludgers . Totally unfair and incorrect .

Self interest somewhere ? Here's the thing . I don't have anything to do with the re industry other than be a customer . I was a renter for about 8 years . I now have rental properties . I am in a higher than average tax bracket and I am positively geared .

I repeat , positively geared . I pay a lot of tax and yet I'm not gouging the tax system by being massively negatively geared . Which part of your ' statistics ' do I fit into ?

Expand

Blah blah blah blah blah.

If you think you're contributing to the economy by buying an uneconomic yielding asset in the hope of never-ending above GDP growth (and not building anything), you need to understand basic economics.

You've parked all your resources in non-productive assets. I have no problem with that, except that the system is fixed toward people like you buying up all the housing stock, at the expense of the taxpayer, and the first home buyer.

The multiples of housing speak for themselves.
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