overwhelming support to axe negative gearing, page-159

Quackie ,

You previously asked why did the govt introduce NRAS if ng was already providing supply ?

" I have seen some of those for rent and it does seem affordable to me but that all depends on household income, if your household income is below $40k a year its unlikely you'll be able to afford anything in a metro area in Perth. "

You're kind of contradicting yourself there . if you read the NRAS website , it explains that they are doing it for people who can't afford rent . That's the point . As I've previously said , I can't understand why the govt is doing this . It doesn't make sense to me .

" For those who think that FHB or other buyers can be priced out of the market forever..it can't happen and it won't happen..again show me a developed democratic country on this planet that has that issue (other than a tax haven or some small island/country somewhere that is a favored holiday retirement destination for the rich)."

I reckon that FHB's will be priced out of downtown New York , London and Paris .

That doesn't mean they can't buy in those cities . They just need to buy further out . Market forces at work .

" You then need to ask the question why is RESIDENTIAL property returns low. Generally other forms of property investment have pretty good returns. "

The returns ( rental ) have been low because they have been offset by the capital gain. I'm not sure which particular " other forms of property investment " you're referring to . If it's commercial you might find that the capital gain isn't there so therefore the rental income has to be greater proportionally .