Adriano said..
Indeed it would, but not if NG was only removed from established property, as planned by the Labor opposition.

Removing NG from established property is sound economic policy and would discourage benignly this incessant pursuit of profit from established residential property at the expense of everyday Australians.

Haircut said..
418 for sale around Coombabah

10/17 Yaun Street, Coomera
Sold $295,000 in Sep 2017
78 Days on Market
Last Sold $289,000 in Jan 2012

Getting so close now to a sale at or under last buy price. This one was previous!y bought at the lowest point of the market too

myusernam said..There are other places in Oz other than Syd or Melbourne. What impact would removing NG have in Bundaberg, Darwin or Dubbo oh Oracle?

Mr Milk said..




Why would anybody NG in the boonies? It only makes sense if you expect capital gains. That means you expect demand to outweigh supply.
So a few people made a killing by getting in ahead of the mining boom in the Qld coalfields and Pilbarra expansion, and a few other people are sitting on big losses after believing that buying fibro shacks in places like Emerald for $1m made sense. I remain amused by the Qld real estate investor of the year who bought up big on borrowed funds and is now the proud owner of a collection of said shacks with no prospect of selling them for anything like what she paid.

myusernam said..


theres plenty of property millionaires who invested in the boonies.
Steve mcnight for example.
The boonies gives u good yield. (ok bundaberg is a shxthole but it was an example)
There are many regional centres worth investing in.

Mr Milk said..




Are you sure that he uses NG? If the yield is good, only slightly better than interest payments, then NG doesn't occur.

An Example.... Borrow at 5% for 80% of the purchase price. Rent yield on 100% of the price only has to be 4% to cover the interest.

Haircut said..
418 for sale around Coombabah

10/17 Yaun Street, Coomera
Sold $295,000 in Sep 2017
78 Days on Market
Last Sold $289,000 in Jan 2012

Getting so close now to a sale at or under last buy price. This one was previous!y bought at the lowest point of the market too

Cambodge said..


I agree with you on No. 2.

No. 1. is more tricky. It's a basic principle that the costs of seeking an investment return should be tax deductible in the same way that the profits from that investment are taxed.

The asymmetry comes about because the costs (read interest payments) are tax deductible at your full marginal tax rate whereas the (assumed) capital gain is taxed at half your marginal tax rate.

The tricky part re: citizenship would mean that all Permanent Residents would be forced to rent. That's a very major disincentive when trying to attract skilled labour into the workforce for the benefit of the overall economy.

How about this for a solution... Incomes and expenses are siloed so property investment costs can only be offset against property investment income, share investment costs can only be offset against share investment income, etc. That would remove the inequality where high earners in high tax brackets get a greater benefit from negatively-geared investments.

evlPanda said..
It's (finally) coming Haircut:

www.smh.com.au/business/companies/the-8b-exodus-sydney-home-owners-are-selling-up-and-queensland-is-the-big-winner-20171006-gyvdco.html

I'd be buying now.
I'm going to put my money where my mouth is and do the same.

Haircut said..
Take with salt as always, but with the doubling listed and and half sold something was going to show up on stats eventually

www.domain.com.au/news/brisbanes-house-prices-are-down-again-but-will-they-keep-falling-20171011-gyyii3/

The Gold Coast, which has been the jewel in Queensland's property crown this year, saw prices fall for the first time in two years. The median price fell by 1.7 per cent, although prices are up overall for the past 12 months by a healthy 6.1 per cent.

Mobydisc said..




You are riding the tiger if you own Australian property and investing in Bitcoin!