Baby Bonus payment is dropping as the budget will be balanced.

http://www.smh.com.au/business/feder...514-2jk5a.html

About time the breeder bonus was axed should never have been instigated in the first place , now knock of the 1st home buyers for good measure and let damned real estate float back to market values.

You'll note the lack of removal of negative gearing - so the market will still be propped up significantly.

without negative gearing, rents will probably increase because fewer will buy investment property (fewer demand for development) and those already in the market will increase their rents. the renters have no choice because there is very low vacancy rates in the market at the moment.

i think negative gearing subsidises the renters because the negatively-geared investors are actually worse off compared to those who are positively geared.

that`ll cause a drop in big screen sales

Or could , without negative gearing , the price of property fall -- and rents along with it--

dont see your logic how does the price of the property effect the cost of renting when there's a rental shortage?

Which investor, in his right mind, will offload property at massive loss, when there's very low rental vacancy rates and steady rental income? Maybe the distressed ones but not many are distressed.

Which developers, in their right minds, would build houses and units at high cost and low prices? Perhaps the dodgy ones.

The supply-demand dynamics need to be seriously considered before withdrawing neg. gearing.

Classic BE thread. Within 2 replies, a thread about something completely differently turns into talk about property prices

Haahahah, true.

IMO the Baby Bonus encouraged the wrong type of person to breed.

It should only have been available to those in employment.

Personally I'm glad it's gone and now I'm just seeing how long it takes before the people with disabilities of Australia's expectations of the Insurance Scheme are dashed when, like any insurance scheme the price of the things they need goes through the roof because the suppliers know the govt. will backstop the cost.

Plus all the "gaps" and "co-payments" that will inevitably be required.

See - I changed the topic too!

This is BE after all. Been a while since we've had a thread about property prices

They were bonking their heads off in West Heidelberg last night.

It effects the price as buy to renters do so in order to negative gear,as such it raises house prices at the lower end and condemns low/middle earners to a life of rip off priced renting or the enforced slavery of a close on working life mortgage.

Drop the first home owners scheme. Stop negative gearing. Bring in greater protection for renters and start to sort out the mess that has developed in grossly overinlated Australian real estate.

As for the so called Baby Bonus, it was a bribe from the former Libs and was a grave mistake in the first place. There are more than enough incentives for those wanting kids as it is.
If after those incentives one needs a bonus to breed well perhaps they are not in a position at the time to start a family.
Indeed Good Guys and like minded business concerns will far from welcome the move. Probably casinos neither...

Re the Baby Bonus - good! About time.

Ahh---some one who actually understands how it really works..

There really is a West Heidelberg ?