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staringclown

Tax deductible mortgage payments!

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Economists warn against tax-deductible mortgages after Coalition refuses to rule out option

Apparently the housing affordability guy thinks housing is too affordable.

Quote

Housing economics experts have warned the government against a proposal to make owner-occupiers’ home mortgages tax deductible after the new assistant minister to the treasurer left the policy option on the table.

The Grattan Institute’s chief executive, John Daley, told Guardian Australia the deduction would cost the budget $19bn a year and do little to improve housing affordability, compared with tackling negative gearing and capital gains tax concessions.

On Thursday Michael Sukkar, whose responsibilities include housing affordability, told Sky News the government wanted to give people a “realistic opportunity to save and purchase a home”.

Asked whether the government would consider adopting the US system where owner-occupiers deduct the cost of their mortgages from their tax bill, Sukkar said there was no “silver bullet” for housing affordability, including that option.

Sukkar suggested housing supply, not decreased demand, was the most important factor and reiterated government policy not to follow Labor’s lead by restricting negative gearing or reducing capital gains tax concessions.

But asked to rule out allowing owner-occupiers a new tax deduction to compete with investors, Sukkar said only: “I will examine, and I know that the treasurer will look at, all good ideas.

“But I am not going to announce them the day after I’ve been announced as assistant minister to the treasurer, so we’ll have more to say in coming months.”

 

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Holy sh*t! In my "trying to be serious and grown up" mind I know we should sell the house in Sydney as we are unlikely to ever use it again; the profit would be somewhat stupid and my rational brain just can't see the prices staying this high.

Then my "Being a self indulgent idiot has actually worked well so far" mind gets boosted by this kind of silliness.

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You won't get the tax deductions of course but you will receive the capital gains. I'd hang on for a few more months*. :) Steve Keen still doesn't get the level of support that will be offered by government to property in this country... 

 

 

*Contingent on Trump not starting a war with China

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It's been a few years since I've bothered reading about house prices, but is this a serious proposition? It's on the scale of bat sh*t crazy.

Tor - you need to know when to hold 'em and when to fold 'em so it may be the time to sell up and buy a pad elsewhere.

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I can't see it actually happening but it is "on the table"

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2 hours ago, Mr Medved said:

Tor - you need to know when to hold 'em and when to fold 'em so it may be the time to sell up and buy a pad elsewhere.

I know that is the sensible thing to do but Ewa loves the house and thinks it is best to keep it just in case. Coincidently doing what she wants is the lazy option in this case and so it is appealing :)

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