Discussion in 'Real Estate' started by Simon Hampel, 23rd May, 2008.
Property investors should stay away from Rudd Governmentâ€™s housing initiatives: Wakelin -
I think there is no chance of making "investment and financial literacy courses compulsory in secondary or tertiary institutes".
The closest thing I studied to "investment" in highschool was in Maths, Business Studies was a good subject but when they are talking about Microeconomics in businesses, it has nothing to do with increasing students financial literacy.
Since these "investment" courses don't actually exist at the moment, it's pretty hard to make them compulsory...
I agree wholeheartedly with Monique's obvious disgust in the REI's recommendations on doubling the current FHOG. What a monumental mistake that would be!!
We already have an affordability problem that isn't going to be easily solved by encouraging more FHO's to buy, and consequently push prices up (just what the REI want, as it equals more commissions for their industry's members ) - this is what happened when the FHOG was first introduced back in 2000 and the consequent artificially high prices didn't really help anybody. The grant became well absorbed into the increasing prices and artificially high housing market.
Let's not repeat the mistakes of the past- I tend to also agree with her opinion about getting rid of the handout grants, and rewarding savers instead.
Interesting article- thanks for the link, Sim.
Yes I also agree with Wakelin. There's no way I would put money into these types of IPs. Highly likely low growth areas with higher risk tenants. More importantly is the risk of what the Gov't deems to be market rent which will be discounted by 20%. Just too much risk all round.
Until the Gov't (Fed and State) stops playing stupid politics and does something to boost the supply side then I doubt much will improve. It is obscene how much State Gov't are using property transactions as cash cows now for a substantial amount of their revenue.
I for one stopped buying IPs a few years and now only buy dividend paying shares due to the high costs and hassles of property. Perhaps there are also others out there like me who were in the business of buying IPs who are now no longer helping with the supply side.
Cheers - Gordon
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