rampage i would hardly say we have 80% public housing.
I know that, our households renting from state/territory housing authorities remained relatively stable, at close to 5% (369,000 households) of all households up until 2006. A further 147,000 households (2% of all households) were renting from other landlords such as employers (e.g. the Defense Housing Authority) Over the same period (2005-06) the proportion of households renting privately increased from 19% to 22%.
I got the impression from your post that you were in favor of matching Singapore.
Renter trend seems to be increasing and what is that saying "the trend is your friend".
the percentage matters a lot, ours is so small it has no effect on the market, so i reject that statement completely
Close to 30% is not a small amount in my book, must be like 2,000,000 potential customers.
a larger deposit isnt a panacea to curb house price growth on its own, other measures would be needed such as a 25% deposit for owner occupier and 50% for investment
Make it 50% if you like makes no difference to me and I doubt 25% deposit for owner occupier will make much difference to them, but it will make a hell of a difference to the first home buyer, most won't even be in the race.
as far as (2) is concerned if your net debt position across all your loans was also factored in (plus your new debt) that could curb how much you could loan
The investors that have substantial equity will still get the loan, plus with the new debt also comes a new income it's called rent.
"Many investors operate the rental properties as a "Business" and as with all "Businesses" any expenses are claimed as a cost of doing "Business". For example, If I had a "Business" which had an overdraft facility, all costs incurred while operating that facility are a tax deduction against any income."
Then change the rules! Why should housing be treated as a "business", we are one of few countries that has negative gearing on housing just for investors, if this was removed along with changing other rules we wouldn't have this housing bubble
If you don't like the rules then you change them, I just work with the rules we have and by the way, there is no bubble but if you choose to believe there is a bubble, that's fine by me also.
Investment in export generating businesses should be favored by taxation more than any other form of investment, thats where real wealth be created for this country
Actually that is already happening, just look at all the extra funds being handed to the car makers, I wander who is paying for that.
when it comes to investing government rules have a large bearing on where people put their money
That will always be the case, it's up to the individual to take advantage of those rules.
I found an article that explains the German property market and it turns out they went through a small bubble when east germany was unified with the country and there were generous tax rules to build and renovate. after awhile the rules were changed and a lot of rich people lost a lot of money and property has been on the nose ever since.
Here is an interesting site, read the bit about Renovations, decorating and painting.
I think the guvnuts should enact those rules here, what do you think.
