There are limitations on the 25% involvement from Vic Gov and it is for basic homes nothing fancy. There is a limit of only 3000 spots not a large enough stake in the tens of thousands of homes each year. It is similar to what the UK has.
The issue is housing as a commodity and investment, shouldn't be allowed then housing would not spiral out of control. We also have negative gearing at a level many nations do not have.
You get paid to take a loss on housing.
Yeah, interest rates are going to suck. They're coming.
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166k for each, so about a 650k home. What does that get in Melbourne these days?
I suspect that these things are going to end up creating some issues down the track, like all of these things have in the past.
If housing wasn't able to be an investment, what would happen overall you think?
If housing wasn't able to be an investment, what would happen overall you think?
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There are a few more things contributing to housing price increases as people want more amenities, more paths, more "certain styles" and "neighbourhood feel" all this adds costs unfortunately.
Some areas in Melbourne consist of 10% of the homes as investment some as high as 15% there's a break down somewhere but it's actually quite a large cohort. If investment wasn't allowed than gov would need to pick up the slack which they are in Vic to put downward pressure.
But depending on COVID, housing might go south really fast in some areas with high mortgage stress.
Lol yeah in the crypto.
I see a collapse coming. Finland hasn't seen the same kind of insanity, partly because it didn't drive the same kind of insanity "dealing with" Covid. But, global crashes affect everyone, except seemingly, those who caused them.
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They also don't have a extremely lucrative negative gearing scheme that enables significant losses to be covered by the tax payer. It is an odd set up and if removed in Australia would cause much of the housing sector to collapse.
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