Discussion in 'Real Estate' started by Simon Hampel, 1st Mar, 2007.
From the ABC: Inside Business - 25/02/2007: Looking for solutions to housing crisis
Nice one mate. I like Alan Kohler's stuff and this is another interesting angle, the relative merit of MIS vs NG. I watched landline through the week and the whole episode was dedicated to MIS for plantations and how the government had ruled that post July 1 only forestry MIS would qualify for the tax breaks and that olives, mandarins, beef, nuts etc all were disqualified. This is when Great Southern Plantations took a hit as too did the other big MIS companies. There will be a battle in court around the ruling, but its clear the government is tightening the qualifications around this little lurk.
As a would-be developer, I welcome anything that levels the playing field a bit. Its a nice point that NG has just seen cash flow into existing housing stock to take advantage of the tax break and that something needs to be done to foster development of new stock. I just hope they come up with the answer to that one before I start turning over dirt on my site. Maybe abolish GST on the sale of new properties within 1 year of their build whilst still allowing for the imputation credits? I've re-run my feasibility numbers a few times and GST is a killer. Maybe also something similar to the FHOG like a FDG (First Development Grant) where the government injects 10% of your build cost for first timers to get a lot more stock flowing through in a hurry. That would be $100K for me and would get me moving real quickly.
Ah well, we can but hope. In the meantime its a lean equation and there's not much incentive to bring new stock on line at the moment...
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