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Supply is code for windfall gains : Comments
By Karl Fitzgerald, published 30/8/2013The bureaucrats' golden pen tick from farming to residential re-zoning creates overnight millionaires for those who own land in the right location.
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It costs the tax payer around 5 billions per.
Instead of negative gearing, we need to inculcate a mindset of positive gearing, that is no longer dependent on the taxpayer or the budget bottom line!
Look, one can buy investment houses in mining districts, for zero dollars down, and tenants that pay enough to manage the mortgage, the rates, management fee and a guaranteed return to the owner of around $67.00 a week?
While these houses might be "worth" $400,000.00 today, capital gains could jack the price up by around 400%, when the mortgage is fully paid off!
Moreover, this a capital gains component, remains largely untaxed?
If there was a indexed for inflation, capital gains tax component, that basically wiped out the unearned income, these money for nothing schemes would be less desirable!
All these schemes make housing for the average mug voter, less and less affordable!
Rents are now so high that the cost of a bedsitter, in places like Sydney, are now higher than the pension.
It really is unacceptable that somebody's mum or dad, having worked, struggled and strived all their lives, has to face the twilight of their years, as charity dependent homeless oldies.
Perhaps if some of these alluded to investors, had to spend a year or two, walking in those very shoes, they might see the value of actually earning their own money, from the honest sweat of their own brows, rather than that of blood sucking parasites!
[And then we wonder why there is this enormous infrastructure shortfall in this country!]
And no, I don't include Soldier settlers in that description, given they more than anyone, have earned what they eventually end up with!
Rhrosty.