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发表于 2014-5-31 18:25:16
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The supply of land and houses is limited while the demand for houses keeps going up due to immigration, tax considerations, taste for a life-style, and so on. Without some change in the negative gearing
tax, the rising trend of housing price cannot be stopped and would be even stronger with the newly-proposed tax cut.
On the other hand, following the slowdown of the US economy and possible slowdown of Chinese economy after the Olympic game 2008, the Australian economy will probably slow down after mid of 2008, which may slow down the growth of housing price.
But again, without some change in the tax policies regarding capital gain from investment in properties,
the current situation (high house price, high rent, low house affordability) cannot be imporved.
It really calls for some tax benefits for first-home buyers, such as some tax deductions on mortgage interests (similar policies are applied in the US and Canada), and less tax benefits for investment properties. |
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