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Report slams government's housing approach: Get rid of stamp duties, now

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Australian Broker | 21 Oct 2013, 07:00 AM Agree 0
A major report on Australia's housing policies has slammed both the Federal and state governments, saying stamp duties should be axed and a dramatic reform of tax incentives for property is in order
  • Davo | 21 Oct 2013, 10:34 AM Agree 0
    I honestly don't follow the logic of these types of arguments. Investors accept operational losses in lieu of tax concessions and capital gains, effectively subsidising rent.

    In an environment where there were losses are not tax deductible and little prospect of a capital gain the only incentive left for the Investor would be an operational profit, which of course means much higher rent.

    Whilst this may benefit some first time buyers, there is always going to be a large percentage of the population who can't or don't want to buy and they will be far worse off.
  • mac | 21 Oct 2013, 11:48 AM Agree 0
    I don't follow your logic Davo. Why is it that you think Landlords would be able to just lift rents in this scenario? I would have thought logically that they wouldn't be able to raise rents as there would be less renters around due to the transfer of unwanted investment property stock making a loss being sold to new buyers. Don't forget the number of properties doesn't change materially so they are either PPR or investments. ps I want this to happen but in an orderly fashion over say a 10 year phase out period.
  • Papery | 23 Oct 2013, 01:23 PM Agree 0
    Most investors I ve come across subscribe to theory that they should start lifting rents as soon as the lease come up for renewal, they also expect the big tax refund each year AND they expect to flip the property at some time in the future for a great profit.
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