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The Forum > Article Comments > Housing and the federal budget - what’s in it for you? > Comments

Housing and the federal budget - what’s in it for you? : Comments

By John Lindeman, published 22/5/2008

Is the Rudd Government telling investors that the days of generating wealth from asset appreciation are over?

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John

Just how effective will the first Labor budget in 13 years be in assisting home buyers and property investors?

Answer – not much better than the losing Libs.

Other than amusing themselves with selective means-testing, Labor is as addicted to Regressive Taxation as the Libs.

First Home Saver Account Scheme:

Good example of regressive planning on part of Labor:

http://petermartin.blogspot.com/2008/05/tuesday-column-labors-home-saving.html

“But it is still an untenably unfair scheme. The earnings of the a First Home Owner Savings Accounts will be taxed at 15 per cent – a concession that’s worth nothing for a low-income earner, but a lot for a very high-income earner.”

Housing Affordability Fund. This fund provides $500 million in the next five years to remove red tape and solve other administrative problems with providing new housing.

Call me cynical, will the main beneficiaries of this Fund will be investors?

National Rent Affordability Scheme, $8,000 per annum for investors to build new dwellings.

The Scheme offers $80,000 Tax Credit ($8000/yr for 10 yrs) to investors.

Announced on 04Mar08, my first thought was “Why is the government helping investors to increase their residential property holdings?” “Why not help FHO?”

This Tax Credit is effectively a slap in the face of potential and recent Home Buyers.

Does the government really care about the rise in rental costs? –
Good question. If it effects their chance of re-election – Yes.

“It is investors who are able to keep their tenants’ rents low through negative gearing and they encourage more housing development”

Is that an echo from last decade I hear?

Recent rent rises are linked to hydrogen balloons.

In 2007 $1 in 12 of lending to investors went into new dwellings.

http://www.theage.com.au/news/national/investors-housing-splurge/2008/02/17/1203190653094.html?page=fullpage#contentSwap1

Perhaps they are telling investors that the days of generating wealth from asset appreciation are over and to get real jobs, like other working families.

Good comment to end on.

For a satirical view of government incompetence, deliberate or otherwise:

http://feudaloptionsparty.googlepages.com/rortcallednegativegearing

http://feudaloptionsparty.googlepages.com/investorsruleok

Cheers
Posted by mr nobody, Thursday, 22 May 2008 5:38:49 PM
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How do I start?
Probably with an advice: If $500,000 cause too uncomfortable a bulge in your back pocket, be cool, do not put them on a house, that is if a house can still be found for that amount anywhere in the country; don’t do it unless you wish to feed a number of professionals who live on the housing trade; Estate agents, governments, display board’s designers, manufacturers and erectors and conveyance solicitors not to mention advertising newspapers barons.

The House you are looking at is worth that amount written on the board less all that the named gentlefolk have had or are in the process of transfering in their pockets from your pocket.

Trouble is that, if you bought it and come to need some money, in selling that house the same pack of parasites will have another go at you.

The amounts we are talking about are no trifle. They vary, and reach the maximum in Victoria with the astounding figure of $44,356, that is close to 9% of your dough.

And other advices: Do not tell all this to the Government…s if you don’t want to hurt their feelings and do not warn the ACCC about the Estate Agent countrywide stronghold on house transfer. You don’t want these folks to change their status from dandy office sitters to productive house builders. Our agents are a body more numerous than our army, are literate and made for the office; too delicate to lift bricks.
Posted by Alcap, Thursday, 22 May 2008 10:24:10 PM
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