CAAN Photo: 10 townhouses under construction where a home was demolished
‘It may be time to revisit the credit controls used in Australia in the 1950s and 1960s, which directed investment into new rather than existing housing and helped increase home ownership.’
That is what Labor proposed prior to the last Election! To limit negative gearing to new housing. Investors would only deduct net rental losses from ‘new homes’ from their wage income.
And all investments made before the changes would be grandfathered to claim losses against wage income.
Here the authors go even further!
‘Tax advantages extended housing investors, such as negative gearing and discounted capital gains taxes, should be scrapped. ….
Challenging vested interests will be hard, but the current downturn offers hope.’
We note no mention of ‘foreign buyers’ who have taken advantage of financial returns from buying our real estate with ‘hot money’ often through a Proxy buyer.
Perhaps despite so much material raising these concerns with sadly no changes by the Morrison Government apart from exempting real estate gatekeepers from the AML Laws (in October 2018) … the authors have chosen to focus on the incumbent rentier class? Who until recently were outnumbered by those from overseas …
It is not only the ‘tax advantages’ that foreign buyers seek but ‘Permanent Residency’… for now international travel is very limited … but buying online still maintains … now targeting homes sought by Australian First Home Buyers!