Society/Culture When will the young fight back against the luxury generation?

[sdfc]

If anyone here can get into the market asap you're on the road to wealth right there. House prices are doubling within 7 years

How's that going to be funded? Household debt is already 190% to disposable income.

 

[Barlos Crathwaite]

How's that going to be funded? Household debt is already 190% to disposable income.

Yea that's the caveat. So damn hard to get into the market without huge financial stress. That's where OPM comes in. The bank of the mum and dad baby boomers

 

[sdfc]

Yea that's the caveat. So damn hard to get into the market without huge financial stress. That's where OPM comes in. The bank of the mum and dad baby boomers

Just how much cash do you think the average Boomer has lying around?

 

[Barlos Crathwaite]

Foreigners buying into wealthy countries without permanently moving there has been a systematic failure of western governments. It should never have happenend

Absolutely right. Drives up the prices for the average person here. Makes it so hard to get a house and forces people to rent

 

[Leeda]

terminal velocity.. work on that dudes.. is good is done... rough welling up and tidy plus ludicrous..
take me on...

 

[Barlos Crathwaite]

terminal velocity.. work on that dudes.. is good is done... rough welling up and tidy plus ludicrous..
take me on...

What I gather from that is that you're not a big fan of capital gains tax too. It's a tough road mate. Be strong

 

[Leeda]

What I gather from that is that you're not a big fan of capital gains tax too. It's a tough road mate. Be strong

you will shatter me with illusions and give me all your children...

 

[Barlos Crathwaite]

you will shatter me with illusions and give me all your children...

Touche. What are your thoughts on the taxation system here?

 

[Leeda]

Touche. What are your thoughts on the taxation system here?

not sure.. people will gravitate to a less than interesting port folio...
the part that I can dig into is that I am less than normal, and more than perfection..
its the best I can do..

 

[Seeds]

What I gather from that is that you're not a big fan of capital gains tax too. It's a tough road mate. Be strong

What should be higher. Income tax rates or capital gains tax rates? Or should they be equal?

 

[Seeds]

Oh ok cool. Want me to fix the thread title for ya?

Um its metaphor. Do you honestly think I was advocating millenials start getting bats and belting baby boomers?

 

[Taylor]

What should be higher. Income tax rates or capital gains tax rates? Or should they be equal?

They are equal.. my understanding is that cap gains are just added to your income for that financial year, minus any cap losses you carry or the discount for investing your money long enough in the asset.

 

[Seeds]

They are equal.. my understanding is that cap gains are just added to your income for that financial year, minus any cap losses you carry or the discount for investing your money long enough in the asset.

They are equal for some capital gains but not housing capital gains. Homeowners pay 0 percent capital gains tax and landlords have a 50 percent discount on capital gains relative to income tax.

 

[Taylor]

They are equal for some capital gains but not housing capital gains. Homeowners pay 0 percent capital gains tax and landlords have a 50 percent discount on capital gains relative to income tax.

I was talking to a CEO of a development company here and he was telling me that for most Australians their biggest investment is in their own home, so taxes on that effectively handbrake the growth in wealth for Australians.

I don't know how much of an argument can be mounted for a 50% discount on an investment property you've held for 12 months. It seems like a big cog in the negative gearing dance on investment property.

Would we have as much supply, theoretically reducing prices for all, if the calculations for investment didn't have half the growth tax free?

 

[ShanDog]

Um its metaphor. Do you honestly think I was advocating millenials start getting bats and belting baby boomers?

No. Just wanting to highlight the hyperbole.

 

[Seeds]

I was talking to a CEO of a development company here and he was telling me that for most Australians their biggest investment is in their own home, so taxes on that effectively handbrake the growth in wealth for Australians.

I don't know how much of an argument can be mounted for a 50% discount on an investment property you've held for 12 months. It seems like a big cog in the negative gearing dance on investment property.

Would we have as much supply, theoretically reducing prices for all, if the calculations for investment didn't have half the growth tax free?

How would they handbrake it compared to any other tax?

If you want taxes to be fairer and more efficient you dont increase the overall tax revenue when raising a tax. You cut other taxes to offset the one you increased. So ideally it benefits the economy and stimulates well being and growth. If you raised capital gains taxes on housing you would significantly lower other taxes like income tax and remove stamp duty.

Ps. CEOS of companies arent economists, they arent the experts on the efficiency of taxes. Many of them know jack all about economics despite being very intelligent people.

 

[Gavin Excell]

Property
Great salaries
Travel
Eating out

But are people happy?

 

[Taylor]

How would they handbrake it compared to any other tax?

If you want taxes to be fairer and more efficient you dont increase the overall tax revenue when raising a tax. You cut other taxes to offset the one you increased. So ideally it benefits the economy and stimulates well being and growth. If you raised capital gains taxes on housing you would significantly lower other taxes like income tax and remove stamp duty.

Ps. CEOS of companies arent economists, they arent the experts on the efficiency of taxes. Many of them know jack all about economics despite being very intelligent people.

Which state taxes were supposed to disappear to be replaced by the GST?

 

[Barlos Crathwaite]

What should be higher. Income tax rates or capital gains tax rates? Or should they be equal?

The top income tax rate should kick in at a higher income for starters imo. Foreign buyers should pay a higher capital gains tax secondly and the top tax rate should be higher

 

[Taylor]

I think that if we are going to have a nation heavy on the social services then we need to tax the middle more.

 

[CheapCharlie]

The top income tax rate should kick in at a higher income for starters imo. Foreign buyers should pay a higher capital gains tax secondly and the top tax rate should be higher

Just limit the foreign buyers to investment type apartments or limit them altogether. The wave of Chinese buyers paying 1 and 2 and 3+ million cash for houses the last 10 years has inflated prices and locked more out of the market.

 

[Taylor]

Just limit the foreign buyers to investment type apartments or limit them altogether. The wave of Chinese buyers paying 1 and 2 and 3+ million cash for houses the last 10 years has inflated prices and locked more out of the market.

If they haven't bought them off other outside investors then that's injected quite a bit of money into the economy.

I'd limit foreign investments to only those places over $650,000 to continue the boost of the middle to upper investment developments to look after the construction industry and then keep the lower levels for first steps on the ladder buyers.

 

[CheapCharlie]

If they haven't bought them off other outside investors then that's injected quite a bit of money into the economy.

I'd limit foreign investments to only those places over $650,000 to continue the boost of the middle to upper investment developments to look after the construction industry and then keep the lower levels for first steps on the ladder buyers.

Money in the economy benefitting who though

 

[Taylor]

Money in the economy benefitting who though

Whoever they then go and spend their money with.

Injection $100m new money into circulation is going to have multiple GDP events before it settles.

 

[Hoops]

I know my kids are better off than me if measured by an economists view of "quality of life". But to say it's easier now is BS. The pressures today's kids face with regard to sex, study, getting a job and buying a house is immense and I don't envy them one bit.