knockoff nige

Labors plan helps stabilise house prices which obviously helps first home buyers. The coalition want house prices to continue to increase at their current rate as their demographic are pretty much all weather home owners who dip regularly into the NG bucket.

I'd go much further than Labor and remove NG altogether but I'd maybe compromise on removing it for the third property and above for anyone with multiple properties on NG. Plus, I'd remove NG from anyone claiming rent from their spouse.

Beoz

Stabilizing house prices doesn't help first home buyers. The only way to help first home buyers is to crash the market or give them money.

There's lots of options that can be played with here. Labors plan is not thought through and is as useless as the Libs do nothing approach.

knockoff nige

That's not true but definitely sounds like something Turnbull, Morrison or Pyne would say. As house prices stabilise and wages go up, houses will become more affordable. More people will buy to live instead of buy to invest and rent on the side. The Coalition have no plan at all though and that is reckless as it sends household debt beyond repair.

Plus, if the demand for buying to live increases, there will be a lot more pressure on state governments to release land for development.

bcworld

I don't think proposed NG or CGT concessions changes are designed just to make home buying for non investors more accessible. There is also the matter of what they cost the budget bottom line - $10B+. "Budget emergencies". "Debt and deficit disasters". Remember those, they're surely even more serious now than they were 2 years ago.

the troubadour

Actually spot on the money. Although I fully appreciate ,though thoroughly disapprove of the ideology sentiments around the issue.

the troubadour

I suspect we are beyond repair. That time has come and gone. Now policy reflects a wing and a prayer with little real acceptance of the crisis we are becoming ever more entwined in.


With wages stabilizing and it can be expected to decline for growing numbers of people as working conditions and hours head southwards.
Unemployment may not be a major feature but the growth is in casual and part time employment, hardly receptive to high wages in most cases and certainly not job security.
House prices are plain and simple out of reach of most first home buyers and without a crash that is unlikely to change.

the troubadour

Little can probably be done at this stage of the game. The giving of money of course would further stimulate the market and raise prices even more.


A pin prick to deflate the bubble in as controlled as manner as possible probably the best hope but really probably wishful thinking.

knockoff nige

House prices are currently too high for most people who buy to occupy. But, even though there is no solution to make it affordable for everyone it's very important that they become affordable for more people. That is being targeted by Labor and that is an actual solid plan that won't affect current rent prices. It's definitely a reason to vote for them seeing that the government don't want to deal with it.

Beoz

Wages aren't going up. They haven't for sometime. There is very little inflation in the economy, expect for housing.

You are assuming the problem is solved by more people buying to live then buying as an investment.

But people can't afford to buy to live now. How is that going to change if prices are stabilized and we see no wage growth?

You need to change the buy type from an investor to FHB. The only way to do this is to take from the investor to give to the FHB.

the troubadour

Besides wages not going up, when house prices do head southwards with greater ferocity, those leveraged to the eye balls, a considerable number, will discover yield useless, no appreciation in value and at some stage interest increases.


In fact slow interest rate rises is the way to move forward. Lower interest rates do nothing but worsen the problem.


We have created a monster due to cheap money and way over generous reasons to invest in real estate. One feels a lot of vested interests involved here are prepared to bring the nation down to levels unwitnessed at least in modern times in the hope of continued gains.

knockoff nige

Not true. Existing investors who NG are not affected. I don't have historical data to prove it but from what I can see over the recent job hunt I was on was that wages are in fact going up. If you have this years stats to prove otherwise then maybe you could provide it. Plus, rent is going down. Investors using NG should not be what decides policy as investors will always have invest. But it's quite obvious that some people have taken the piss with NG, some having over 10 properties on it. Why am I subsidising that when it is only pushing house prices out of my reach and many others? But politicians caught doing it as well as double dipping on rent allowance really annoys me.

Also, if NG is removed then buying to invest is not really that affordable and so there will in fact be more people buying to occupy.

the troubadour

The only way to make affordable is by a considerable reduction in inflated value. Too many influential forces are hell bent on not allowing that to happen. The longer the rort goes on the harder to arrive at anything closely resembling a 'smooth' (as could be expected) outcome to the mess we find ourselves in.

knockoff nige

If more properties are available to buy, that will affect house prices. But, just like we thought 15 years ago that $250000 for a house was insane, we adjust our reasoning on house prices if they stabilise. Right now they are moving too fast for us to do that.

the troubadour

Latest stats I've seen as the growth is in temp and casual employment. Hardly sound fodder for the housing industry in terms of levering until the grave. Most people I have heard of in the WA context (including self and partner) are on far, far less than a few years back. Colleagues and/or their kids the same.(not in mining either but was away) I believe many are only hanging on to their investment properties by the skin of their teeth. Low interest rates, but declining rents are hurting.


Changes to NG will I expect dampen the apartment market which is badly required, but far more needs to be done to create affordable housing. It is dire for a country/city to be able to function.


I'd phase out NG in its present form over time to ever one and allow reductions more in line with certain other countries.

the troubadour

I'm afraid not. Far more complicated. The multitude of average pay versus cost of home ownership is far above comparable rates of 15 years ago.


I know on a personal level, the house I bought sixteen years ago with barely a second thought, would have cost me a hefty mortgage if purchased today.
I certainly would be disinclined to purchase.