Australian Politics Forum - If they are hell bent on keeping negative gearing.

Sir lastnail

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If they are hell bent on keeping negative gearing.
Jun 20^th, 2023 at 2:51pm

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

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« Last Edit: Jun 20^th, 2023 at 3:15pm by Sir lastnail »

"If you take out Saddam, I guarantee you that it will have enormous positive reverberations on the region..." - Benjamin Netanyahu in 1995

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Bobby.

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Re: If they are hell bent on keeping negative gearing.
Reply #1 - Jun 20^th, 2023 at 3:08pm

Hi sir Nail,
the politicians created a perfect storm with their negative gearing
that caused massive rises in prices of property and poor investment in anything else.
Only 5.5% of our economy is manufacturing.
Australia was turned into a get rich quick Ponzi scheme for property
and not a place that created real jobs.

https://www.aspistrategist.org.au/government-fund-wont-stop-australian-manufactu...
Manufacturing has been falling as a share of the economy for a lot longer than that,
having peaked at more than 25% in the 1970s compared to just 5.5% now. (6 Oct 2020)

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Sir lastnail

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Re: If they are hell bent on keeping negative gearing.
Reply #2 - Jun 20^th, 2023 at 3:16pm

Bobby. wrote on Jun 20^th, 2023 at 3:08pm:

Hi sir Nail,
the politicians created a perfect storm with their negative gearing
that caused massive rises in prices of property and poor investment in anything else.
Only 5.5% of our economy is manufacturing.
Australia was turned into a get rich quick Ponzi scheme for property
and not a place that created real jobs.

https://www.aspistrategist.org.au/government-fund-wont-stop-australian-manufactu...
Manufacturing has been falling as a share of the economy for a lot longer than that,
having peaked at more than 25% in the 1970s compared to just 5.5% now. (6 Oct 2020)

and this is exactly what they wanted for their non productive investments Sad

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"If you take out Saddam, I guarantee you that it will have enormous positive reverberations on the region..." - Benjamin Netanyahu in 1995

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Bobby. Gold Member Offline Australian Politics Posts: 121982 Melbourne Gender:	Re: If they are hell bent on keeping negative gearing. Reply #3 - Jun 20^th, 2023 at 3:25pm We have incompetent politicians. Only 5.5% of our economy is manufacturing.
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Dnarever

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Re: If they are hell bent on keeping negative gearing.
Reply #4 - Jun 20^th, 2023 at 8:38pm

Sir lastnail wrote on Jun 20^th, 2023 at 2:51pm:

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

What if they work out that the best way to profit on new houses is to knock down old houses ?

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Lisa Jones

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Re: If they are hell bent on keeping negative gearing.
Reply #5 - Jun 20^th, 2023 at 8:42pm

Sir lastnail wrote on Jun 20^th, 2023 at 2:51pm:

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

Dear God ... you don’t know much about negative gearing Last Nail 😩

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If I let myself be bought then I am no longer free.

HYPATIA - Greek philosopher, mathematician and astronomer (370 - 415)

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Sir lastnail

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Re: If they are hell bent on keeping negative gearing.
Reply #6 - Jun 20^th, 2023 at 8:54pm

Lisa Jones wrote on Jun 20^th, 2023 at 8:42pm:

Sir lastnail wrote on Jun 20^th, 2023 at 2:51pm:

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

Dear God ... you don’t know much about negative gearing Last Nail 😩

what don't i know about it Lisa ?

A clown borrows a truck load of money to buy a 50 yo dump and then writes the interest payments off against the income from their day job. How does that add to the supply of housing ?? It doesn't unless it's a new house and land package otherwise just investing in the same dump adds nothing to the supply !!

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"If you take out Saddam, I guarantee you that it will have enormous positive reverberations on the region..." - Benjamin Netanyahu in 1995

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Lisa Jones

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Re: If they are hell bent on keeping negative gearing.
Reply #7 - Jun 20^th, 2023 at 9:18pm

Sir lastnail wrote on Jun 20^th, 2023 at 8:54pm:

Lisa Jones wrote on Jun 20^th, 2023 at 8:42pm:

Sir lastnail wrote on Jun 20^th, 2023 at 2:51pm:

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

Dear God ... you don’t know much about negative gearing Last Nail 😩

what don't i know about it Lisa ?

A clown borrows a truck load of money to buy a 50 yo dump and then writes the interest payments off against the income from their day job. How does that add to the supply of housing ?? It doesn't unless it's a new house and land package otherwise just investing in the same dump adds nothing to the supply !!

For starters : Negative gearing isn’t a long term strategy for any property.

Also in borrowing money to invest in Australian real estate...you are supplying rental opportunities to fellow Australians WHILST keeping Australian real estate in Australian hands.

Do you understand how important that is? It’s keeping the money in the family so to speak ie in Australia.

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If I let myself be bought then I am no longer free.

HYPATIA - Greek philosopher, mathematician and astronomer (370 - 415)

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Jovial Monk

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Re: If they are hell bent on keeping negative gearing.
Reply #8 - Jun 20^th, 2023 at 10:06pm

Sir lastnail wrote on Jun 20^th, 2023 at 8:54pm:

Lisa Jones wrote on Jun 20^th, 2023 at 8:42pm:

Sir lastnail wrote on Jun 20^th, 2023 at 2:51pm:

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

Dear God ... you don’t know much about negative gearing Last Nail 😩

what don't i know about it Lisa ?

A clown borrows a truck load of money to buy a 50 yo dump and then writes the interest payments off against the income from their day job. How does that add to the supply of housing ?? It doesn't unless it's a new house and land package otherwise just investing in the same dump adds nothing to the supply !!

For once I agree with you.

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Sir lastnail

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Re: If they are hell bent on keeping negative gearing.
Reply #9 - Jun 20^th, 2023 at 10:13pm

Lisa Jones wrote on Jun 20^th, 2023 at 9:18pm:

Sir lastnail wrote on Jun 20^th, 2023 at 8:54pm:

Lisa Jones wrote on Jun 20^th, 2023 at 8:42pm:

Sir lastnail wrote on Jun 20^th, 2023 at 2:51pm:

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

Dear God ... you don’t know much about negative gearing Last Nail 😩

what don't i know about it Lisa ?

A clown borrows a truck load of money to buy a 50 yo dump and then writes the interest payments off against the income from their day job. How does that add to the supply of housing ?? It doesn't unless it's a new house and land package otherwise just investing in the same dump adds nothing to the supply !!

For starters : Negative gearing isn’t a long term strategy for any property.

Also in borrowing money to invest in Australian real estate...you are supplying rental opportunities to fellow Australians WHILST keeping Australian real estate in Australian hands.

Do you understand how important that is? It’s keeping the money in the family so to speak ie in Australia.

for every investment property sold to an owner occupier is one less renter so it's a zero sum game. By investing in existing property you are not adding to the supply of property at all Sad

As for foreign investors by all means limit them to investing in new house and land packages for the same reason Wink

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"If you take out Saddam, I guarantee you that it will have enormous positive reverberations on the region..." - Benjamin Netanyahu in 1995

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Lisa Jones

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Re: If they are hell bent on keeping negative gearing.
Reply #10 - Jun 20^th, 2023 at 10:28pm

Sir lastnail wrote on Jun 20^th, 2023 at 10:13pm:

Lisa Jones wrote on Jun 20^th, 2023 at 9:18pm:

Sir lastnail wrote on Jun 20^th, 2023 at 8:54pm:

Lisa Jones wrote on Jun 20^th, 2023 at 8:42pm:

Sir lastnail wrote on Jun 20^th, 2023 at 2:51pm:

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

Dear God ... you don’t know much about negative gearing Last Nail 😩

what don't i know about it Lisa ?

A clown borrows a truck load of money to buy a 50 yo dump and then writes the interest payments off against the income from their day job. How does that add to the supply of housing ?? It doesn't unless it's a new house and land package otherwise just investing in the same dump adds nothing to the supply !!

For starters : Negative gearing isn’t a long term strategy for any property.

Also in borrowing money to invest in Australian real estate...you are supplying rental opportunities to fellow Australians WHILST keeping Australian real estate in Australian hands.

Do you understand how important that is? It’s keeping the money in the family so to speak ie in Australia.

1. For every investment property sold to an owner. occupier is one less renter so it's a zero sum game. By investing in existing property you are not adding to the supply of property at all Sad

2. As for foreign investors by all means limit them to investing in new house and land packages for the same reason Wink

1. Ok so let’s look at that. I’ve got a rental property atm which I wouldn’t mind selling. It’s worth $2.5 million in today’s market. It’s renting at $1000 a week.

Tell me how selling this property will guarantee it going to an owner occupier? Also tell me how selling this property will definitely go to a non Asian/foreign INVESTOR for starters? Also explain to me how a current renter is going to afford this home so they can become an owner buyer? I can assure you here and now that the only possible buyer for my house will be an Asian that’s cashed up compliments of CCP.

Also ....do you seriously think you will be able to ensure that resident or foreign investors will obey/comply with what YOU think they should do with THEIR OWN money?

Also what about existing resident or foreign investors? Are you saying they should be forced to sell their investment properties which are providing shelter to those Australians who can’t afford to buy? Who will buy their homes? And where should these existing resident investors of real estate do with the money they get IF they sell?

Last Nail....when a house is on the market ... do you know what that means? It means it’s up for sale to the highest bidder (either via negotiation or by auction).

And right now...it’s the Asians that are buying up blue chip real estate that’s worth buying up because these properties double every 5 - 10 years.

The rest ie new cardboard homes in new housing estates is just junk. And THAT isn’t worth investing in. You can’t make money there. Those struggling to buy their 1st home might have a chance to stop renting by buying that cheap and quick junk. That’s about it. It keeps state stamp duty coffers rolling and local councils love it because it means more rates. It keeps real estate agents in jobs and it means banks can continue to lend lots of money to idiots who will be forced to pay whatever they’ve borrowed back at 6% while their cardboard homes will barely increase in value over the next 10 years.

One last comment : we’ve been having these discussions for many years Last Nail. Even way back on Yahoo I believe. Yes?

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« Last Edit: Jun 20^th, 2023 at 10:53pm by Lisa Jones »

If I let myself be bought then I am no longer free.

HYPATIA - Greek philosopher, mathematician and astronomer (370 - 415)

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freediver

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Re: If they are hell bent on keeping negative gearing.
Reply #11 - Jun 21^st, 2023 at 6:45am

Sir lastnail wrote on Jun 20^th, 2023 at 2:51pm:

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

Perhaps you should seek to understand why "they" want to keep negative gearing before offering economic advice.

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Jovial Monk Gold Member Offline Dogs not cats! Posts: 51474 Gender:	Re: If they are hell bent on keeping negative gearing. Reply #12 - Jun 21^st, 2023 at 9:23am Why don’t you tell us, FD?
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Lisa Jones

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Re: If they are hell bent on keeping negative gearing.
Reply #13 - Jun 21^st, 2023 at 10:23am

freediver wrote on Jun 21^st, 2023 at 6:45am:

Sir lastnail wrote on Jun 20^th, 2023 at 2:51pm:

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

Perhaps you should seek to understand why "they" want to keep negative gearing before offering economic advice.

Freediver

Just a bit of background info: Last Nail is a friend from Yahoo who has maintained a long held belief that people should invest their money in shares only...NOT real estate.

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If I let myself be bought then I am no longer free.

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Sir lastnail

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Re: If they are hell bent on keeping negative gearing.
Reply #14 - Jun 21^st, 2023 at 12:02pm

freediver wrote on Jun 21^st, 2023 at 6:45am:

Sir lastnail wrote on Jun 20^th, 2023 at 2:51pm:

And they keep telling us that removing negative won't increase supply then a simple solution is to limit negative gearing to brand new house and land packages instead of recycling the same old dumps that were built 50 years ago. This will encourage the property hoarders to invest in new houses which will increase supply. Problem solved, otherwise it is just a tax avoidance scheme for the non productive side of the economy who won't invest in anything else Sad

https://www.youtube.com/watch?v=M1maTkeUSMM&t=1631s

Perhaps you should seek to understand why "they" want to keep negative gearing before offering economic advice.

because the pollies are being paid to much and are paying too much tax Wink

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"If you take out Saddam, I guarantee you that it will have enormous positive reverberations on the region..." - Benjamin Netanyahu in 1995

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