Originally posted by kingpins
Hi AuCu
Regardless of it being a good system or a bad system (NG) the fact is that it is well entrenched into the property/housing industry so that fact has to be acknowledged
Was it a bad system to bring in ? (my personal view is that it was)
But separate and totally independent of the forgoing how do you change it without doing damage to the public and in doing so damage or collapse the housing industry
So you can debate the first for as long as you like it is inconsequential, but the second part will need some strong argument before it is changed
The Labor Party unfortunately never have anyone with practical experience to help formulate their plans so whatever they do will be impractical and damaging
Also a great percentage of people should NEVER get involved in investment properties because they are lazy and don't know the right things to do relying on "expert advisors"
KP,
I agree the risk of doing damage needs to be consider carefully and I doubt the Labor party will take it lightly either as a lot of their supporters would be affected by it for a period of time, particularly the CFMEU. You can t change something so entrenched and expect there to be little impact.
The main risk here IMO is a decline in prices that will likely flow through to other parts of the economy. However the decline will not last forever and if falls are significant it will eventually adjust back up to fair value again. Or it just as likely to decline to a more appropriate or manageable price to income ratio. As every knows people need to live somewhere.
For most people as some here hammer on about, temporary fluctuation in price don’t affect most people as they will hold onto their homes. It the short term speculators and highly leveraged that will be mainly affect. The market and economy will eventually find a bottom from which a recovery can take place.
Aust is luck, we don’t have the issues the US and other have, high govt debt., larger populations to employ and keep happy (for now).
