Party over if AAA credit rating lost, page-2

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UniversalTrader

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07/12/16

07:14

Post #: 21155594
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Originally posted by aramalap2 ↑

Already higher funding costs starting to be past on by the banks.
I thought this article was informative for a novice like myself

http://www.financialfoundations.com.au/2016/08/03/focus-australias-credit-rating-2/

We havnt had a recession for 25 yrs are overdue for one.
Imho there has been an element of irrational exhuberance creeping into property transactions of recent times
fuelled by low rates and low supply
Major corrections in any market will be good long term,it cleanses the system and makes those reassess their decision making process.

I would tackle the NG debate by considering the following:
1-not allowing property in a super fund.
2-decreasing the cap gain discount to 40% .
3-capping deductions either fixed $amnt or % land improved value.
4-investment property purchased and not occupied within a 3y period should be placed on the market
for sale and/or eligibility for claiming deductions declined.

The govt needs to raise more taxes and reduce the assistance offered to investors by taxpayers.

Expand

lol... getting draconian much
1) Why shouldn't people have the choice to invest their money in ANY asset class they like.
2) Better to return to indexation - but any changes should be applied to ALL asset classes.
3) Costs are costs so they should be able to be deducted the same way as the government chooses to tax profits.
4) If you own property it is YOUR choice what to do with it - quite frankly if you don't use the asset it then it is a poor allocation of capital. As for the deductions well you can only claim them if you are using the asset to make money or at a bare minimum are trying to make money (i.e. it is advertised for rent).

As for the need to raise taxes - well how about they better manage the money they have got first. It shouldn't be one sector of society wearing all the increases - after all it is not like they get anymore services for paying more versus someone paying less.
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