Share
14,681 Posts.
lightbulb Created with Sketch. 60
clock Created with Sketch.
04/09/14
23:30
Share
Originally posted by LongNow
↑
I don't need statistics to prove what's common knowledge - negative gearing is used by people with multiple investment properties to reduce their personal income tax, often to fractions. Are you questioning that?
Non-productive industries - please do tell me how putting countless billions into overvalued, existing housing stock is productive. A few people lining their nests with the easy money of commissions isn't exactly a multiplier effect. The only other big beneficiary is the banking sector (which, at about a third of our stock market, is absurdly valued in itself). Given that about 90% of housing 'investments' are actually existing stock (i.e. not actually an investment in the true sense of the word, but speculation), it's fair that I - and pretty much any economist free from conflicts of interest - call it unproductive.
As for victims, you're demonstrating a failure to grasp the dynamics of the industry. We're all in it. You live here, you're a part of it. There are three main groups in this:
- those who own investment properties (the minority, estimated at about 2 million people)
- those who own their own home only (far larger)
- those who don't own any property (similar scale to owner occupiers).
Anybody with a brain can work out what happens to the three respective groups as housing prices go to ridiculous multiples of income - the first group gets wealthy, the second group goes nowhere (unless they want to downsize), and the third group gets screwed.
In a time when the media cycle is full of morons bemoaning how 'overtaxed' people are (objectively not true), the impost of mortgages of 70% of incomes (for bog ordinary houses far from cities) is far worse than any tax people have ever had to pay in this country.
I'm struggling to see how anybody could be so defensive of the property industry as you are, without having a self interest somewhere.
Expand
U forgot to mention the lazy govt as well as STAMP DUTY increases for govt doing FU%5 ALL=--they all have vested interest !! Money for Jam--FHBG(INFLATED PRICES)--foreign investment from 15% -35%,keeping an inflated housing market rolling along--once the job losses hit watch --as cheap repayment won`t matter with no money coming in.