I still wonder if Australia will jump ship from the US as they crash. As time goes on, it seems less likely, but maybe not impossible.
Had a social chat with a career banker recently. His opinion from the perspective of housing, lending, rentals and investment is that there is absolutely no good in the Australian government at the moment. The skyrocketing costs associated with the above could be easily fixed by some simple regulations, but because the govt has gotten itself in so much debt, they are using the above areas to recoup costs and pay debts. Investors with rental properties are having increased compliance measures added to their outgoings that they are passing on to renters and the compliance measures can only be attended to by govt approved businesses and require annual inspections and fees.
Additionally he mentioned the AirBnB market where he says there are around 650,000 listed properties and this market is not subject to the same compliance measures as those properties that are listed for longer term rentals. The super wealthy local and international investors are attracted to the AirBnB market for negative gearing, but they don't have to actually get bookings in order to gain the tax benefits. They only have to have the property listed as being available for bookings and AirBnB properties have an average booking rate of 38 nights per year. The strategy that some are using is to buy properties close to family or other places they'd like to holiday, but set the booking rate too high for the market to ensure that the property mostly stays empty for their own use. That goes some way in explaining why, at a time of housing shortages, that complaints are heard about empty properties. Also why more people are competing for properties in rural and regional areas.
The next point he bought up was that prior to June last year, investors from India had to pay a 10% tax to the Indian government for funds taken out of the country. After June, that was raised to 25%, so there was a rush on Australian property investment from India to get their funds out at the cheaper rate.
If this banker was more aware of the global situation and the influence of the WEF crew etc., I don't know. The occasion didn't seem to suit raising the matter. He thought that the property prices should have dropped by now, but he believes the above influences are still supporting it despite interest rate rises.
Had a social chat with a career banker recently. His opinion from the perspective of housing, lending, rentals and investment is that there is absolutely no good in the Australian government at the moment. The skyrocketing costs associated with the above could be easily fixed by some simple regulations, but because the govt has gotten itself in so much debt, they are using the above areas to recoup costs and pay debts. Investors with rental properties are having increased compliance measures added to their outgoings that they are passing on to renters and the compliance measures can only be attended to by govt approved businesses and require annual inspections and fees.
Additionally he mentioned the AirBnB market where he says there are around 650,000 listed properties and this market is not subject to the same compliance measures as those properties that are listed for longer term rentals. The super wealthy local and international investors are attracted to the AirBnB market for negative gearing, but they don't have to actually get bookings in order to gain the tax benefits. They only have to have the property listed as being available for bookings and AirBnB properties have an average booking rate of 38 nights per year. The strategy that some are using is to buy properties close to family or other places they'd like to holiday, but set the booking rate too high for the market to ensure that the property mostly stays empty for their own use. That goes some way in explaining why, at a time of housing shortages, that complaints are heard about empty properties. Also why more people are competing for properties in rural and regional areas.
The next point he bought up was that prior to June last year, investors from India had to pay a 10% tax to the Indian government for funds taken out of the country. After June, that was raised to 25%, so there was a rush on Australian property investment from India to get their funds out at the cheaper rate.
If this banker was more aware of the global situation and the influence of the WEF crew etc., I don't know. The occasion didn't seem to suit raising the matter. He thought that the property prices should have dropped by now, but he believes the above influences are still supporting it despite interest rate rises.
