Quote:
Originally Posted by ford man xf
Can you explain how prices are artificially inflated? There are plenty of people either earning decent cash or have stored wealth to buy, so naturally this particular market is going to be high cost due to inflationary pressure.
Often people will say that it's because of supply and demand, yet I can go and buy a new home as we speak, there are thousands of blocks of land for sale at the moment ripe and ready to build on.
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If you think a cashed up Chinese investor buying up Australian property and then letting it sit idle is not artificially inflating the market then I am lost for words.
Or a dozen people bidding on a property they plan to use as a tax break.
C'mon, do is sound ethically right to borrow money to fund a purchase which you know will lose money so you can use that loss for financial gain.
Then consider it is one of the fundamental needs of human existence your playing with.
If every investor who planned to negative gear was banned from purchasing property for 6 months what do you think would happen to the market.
Ideally the value of homes would come down as the extra demand would dry up, but I would take a stab and say most owners would wait 6 months until the frenzy returned...why?
And don't tell me if it weren't for investors then renters would have no where to go, if negative gearing was removed from all but 1 investment property the excess baggage would be unloaded, the market flooded as they would become a liability and the market would adjust accordingly.
Not as many people would be reliant on landlords as they could afford their own home.
The only people who would deny this have a vested interest be it investment or the current value of their ppor.