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broad based government rental assistance?

Discussion in 'Real Estate' started by Nigel Ward, 20th Feb, 2007.

  1. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    Interesting! I wonder if anything will come of it. Seems like -ve gearing could be safe though...for the time being. :rolleyes:

    PM may help struggling renters - National - smh.com.au

     
  2. D&K

    D&K Well-Known Member

    Joined:
    14th Nov, 2005
    Posts:
    206
    Location:
    Canberra
    Hi Nigel,

    I get the Matusik Report and this quotes data that backs up my experience, for Brisbane at least. Rents haven't been keeping up with inflation for 4 - 5 years, so this last 6 months is a bit of catch-up; although barely matching increases in rates and body corporate fees over the that period. Hence, the costs to owners (and investors) has gone up more than renters - time for catch-up but having said that, I'm not sure the increases will continue for long.

    Hence the government knows that the money will flow through to investors still trying to get rental yeilds up to cover the costs that the market hasn't kept pace with. Like FHOG which seemed to create a matching price rise for new houses (and a few smiles on builders faces that I noticed), any hand out will flow through. At least -ve grearing is safe for now.

    Dave
     
  3. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
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    1,885
    Location:
    Sydney
    Neg gearing won't be abolished any time soon- remember what happened when they removed it in the 80's? Pure bedlam.
     
    Last edited: 2nd Mar, 2007