Originally Posted by
McPussPuss
Amusing to see the property investment class out in full voice having a grizzle after 12 months of outrageous capital gains and cheap credit, it is still not enough.
This govt, (love or loathe) originally campaigned and was elected on a housing affordability platform. Now after almost 4 years of diddly squat and soaring capital gains for investors they have finally made a move.
In my opinion the primary driver of the property market since the 80s is demand driven through credit availability, Interest rates in a one way direction. Borders are closed and prices up 25%?
Sure interest deductability may not now align with other business tax regulations but so what, it is targeted at property due to malinvestment and speculation creating an unsustainable distortion in the economy.
I dont know it if it the right move but it will temper overleverage and loss making property portfolios with a sole eye on capital gains.
As for rental supply decreasing, are these properties going to suddenly vaporise??