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.
