negative gearing should be limited to no more than one property per investor. I don't have a problem with some wanting to better their future prospects by locking in a property while receiving many benefits. But we've all seen the greedy b@st@rds sweep their arms across suburbs buying 4,6,10 or more homes as the scam just compounded into their pockets. Now house prices are very unaffordable. For now we may scrape through. But what about those who bought a home in last 4 years? Their debt is probably unserviceable at normal interest rate repayments. No wonder the labor party was white faced when it looked at the numbers late last year and instantly dropped the rates. Julia Gillard on talk back radio refused to elaborate on the exact figures, but obviously things were looking desperate.
With interest rates so artificially low housing will be doing reasonablly okay. But the rates will eventually have to rise above what is acceptable. Is the average Australian wage going to increase proportionately to the costs of living? With cheap overseas labour doing many of our jobs with no tariff protection I cannot see opportunity for much scope for wage increases. If anything we're seeing deflationary pressures on wages already!
