Society/Culture Australian Property Prices to Crash?

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Kwality

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I never said people needed to make cash donations to others.

I simply said id be happy to lose my investment tax advantages if it means that first home buyers, or others who are owner occupiers had a better chance of buying a house. I can easily just invest elsewhere as I would be less inclined to remain investing in property. I am not a selfish asshole like most of the others in this thread who already own property.

I am very fortunate in life. I have worked hard and reaped the benefits.

Younger people who work just as hard as me are being f’ed over, simply because they weren't born at the same time as me.

I can see the forest for the trees, you seemingly just see it for the $, cause you don't give a sh*t about anyone else.
These tax advantages you have, are they a form of saving, say 50 cents in the dollar, or are you on the positive side of what was a negative geared investment.

Not everyone has a secure job with their super cranking up week by week. Our current Super system is anything but equitable, and those making sacrifices to build wealth outside Super are not the super rich many seek to paint them as.
 
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Taylor

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Melbs in 2015:

Melbs in 2020:

Vacant property tax "built to fail" with self-reporting never checked.

69,000 "ghost homes" in Melbourne:

Have you looked into Chinese investment motivations before? They have entire cities that are built and left vacant not as a means of simply inflating GDP but so that families can compete for the love interests of families that had a daughter.

So I think we are seeing a fair bit of that here too. Purchases for the purpose of a resume. Not intended as rental or otherwise occupied property.
 

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CatFan79

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Have you looked into Chinese investment motivations before?
All those vacant properties are Chinese owned.

We could implement a 'racist' policy of not allowing overseas investors to inflate our property market in this way...

But I'd feel for the cognitive dissonance cases on the left side of politics if we did such a thing.
 

Taylor

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Jul 16, 2009
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All those vacant properties are Chinese owned.

We could implement a 'racist' policy of not allowing overseas investors to inflate our property market in this way...

But I'd feel for the cognitive dissonance cases on the left side of politics if we did such a thing.
I've suggest here that we should be making better use of that demand.

The Chinese want to own property, it doesn't have to do anything for them. They will pay a lot of money to own luxury apartments, those apartments can fund the construction of more modest homes below them in the tower block knowing that the parking under will be very open.

We should be to welcoming Chinese money to fund our building industry with the caveat that these homes aren't allowed to be rented to locals. Which is what they do already, so it doesn't impact the market at all except to bring new homes into creation and if these are all modest/small first homes then it fixes that end of the market without drawing down 10% of the market value of everyone else - which is worth way way more than the cost of building those homes.
 

CatFan79

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Sep 25, 2004
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I've suggest here that we should be making better use of that demand.

The Chinese want to own property, it doesn't have to do anything for them. They will pay a lot of money to own luxury apartments, those apartments can fund the construction of more modest homes below them in the tower block knowing that the parking under will be very open.

We should be to welcoming Chinese money to fund our building industry with the caveat that these homes aren't allowed to be rented to locals. Which is what they do already, so it doesn't impact the market at all except to bring new homes into creation and if these are all modest/small first homes then it fixes that end of the market without drawing down 10% of the market value of everyone else - which is worth way way more than the cost of building those homes.
Too much work, just get rid of negative gearing.. That'll solve the problem.
 

Deliverance

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Jun 19, 2011
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It sounds like there's a market for "first homes" that have one and a half bedrooms, one bathroom and combined laundry kitchens in about 30m2. Far cheaper, obviously, not all that nice but it's a step on the ladder.
The only issue with this is the costs involved in relocating, that don't come with tax benefits that investors get.
At some stage, when they have kids, the need a bigger home, not a mcmansion. Then there's stamp duty, agents fees, etc.
 

Deliverance

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Have you looked into Chinese investment motivations before? They have entire cities that are built and left vacant not as a means of simply inflating GDP but so that families can compete for the love interests of families that had a daughter.

So I think we are seeing a fair bit of that here too. Purchases for the purpose of a resume. Not intended as rental or otherwise occupied property.
Yep, people in my area buy homes, not to rent or live in, but as status symbols to show their friends back in China.
 

Chief

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Have you looked into Chinese investment motivations before? They have entire cities that are built and left vacant not as a means of simply inflating GDP but so that families can compete for the love interests of families that had a daughter.

So I think we are seeing a fair bit of that here too. Purchases for the purpose of a resume. Not intended as rental or otherwise occupied property.
Yes I watched that YouTube video.

There's a three-parter covering their skewed population, water problems, and property market.

I believe some property here has been a funnel for cash out of China given their currency exchange limits. It's probably more complicated than that.

Also, I am watching this guy talk about his camper van.

 

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Kwality

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Possibly, I'm not aware of it though.

The Residential property tax
The exodus of foreign property buyers from Victoria has most likely been influenced by the announcement of the Vacant Residential Property Tax (VRPT) in 2017. As of January 2018, properties in select inner and middle Melbourne suburbs that are vacant for six months or more, and owned by a foreign investor, will incur a tax.

The VRPT charges an annual rate of 1 per cent of the property's capital improved value. This tax has been implemented to combat large numbers of properties in Victoria that are being left idle. This tax should encourage more properties to become available to renters in Victoria.

“This will be a double blow for any foreign investors acquiring residential property in metropolitan Melbourne. These new measures require foreign investors to report annually on the use of their residential land holding and pay a charge equal to their original investment approval fee if their property is vacant for at least six months per year."
- Conveyancing.com Managing Director Jim Parke
 

Chief

Overlord
Dec 1, 1999
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Brisbane
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The Residential property tax
The exodus of foreign property buyers from Victoria has most likely been influenced by the announcement of the Vacant Residential Property Tax (VRPT) in 2017. As of January 2018, properties in select inner and middle Melbourne suburbs that are vacant for six months or more, and owned by a foreign investor, will incur a tax.

The VRPT charges an annual rate of 1 per cent of the property's capital improved value. This tax has been implemented to combat large numbers of properties in Victoria that are being left idle. This tax should encourage more properties to become available to renters in Victoria.
But it never did, from what I've read.
 

Kwality

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One property owner in an article I posted had no idea the tax even existed. Nobody is checking on this self-reporting. It's ineffective and numbers of vacant properties have climbed. From what I read today.
How do we know vacant properties have increased ?

No excuse for it being missed at settlement on purchases.
 

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