Accounting for negative gearing: What is fair-traditional accounting
The accounting for rental increase: The amount lost in tax benefit (negative gearing) would be collected from the renter. No other changes in the market.
What happens when Government budget is in deficit: It prints more money to devalue it or it puts ordinary people in suffering. As I have explained in other pages about election in Australia, people pay medicare to cover health care. Now, less than 1% population cannot earn enough money to live their life cannot become a platform for any political party to raise tax every possible ways. The prime job of government is to make everyone employed. This is the most immoral way for a government to put ordinary people in a cycle of suffering with their tax grabs. Money changes hands from people to government, people covers the deficit with price hike. The future cannot be better than present in this situation if government is not introducing a huge amount of new products under their management. I'm not talking about development plans. It has to be completely new companies of government who will compete with each products in inflation, not from the existing economy. It is always government policies fueling inflations and tax hike is most toxic one. The last thing a property owner does is sell it whatever changes coming back and forth. In the long run investor will recover new tax from consumers mostly via increasing rent. A large number of investors rely on equity to expand the small business and employ more people will be bankrupt or shut off.
When overall policies of labor continued to fuel inflation and interest rates hikes resulted in the crash of the property market, labor had no other ways to support the market crash with another legislation. It's more like spraying perfume in the human shit.
1. Account for individual, company or any organisation identified by registered names which menifests the individual account.
2. Existing structure to buy a property with income and debt and buying shares in a different company have different contexts. To understand the rate for CGT you need to see what happens inside a company and how income tax rate is different for different size of income. So, two ways to determine it, one is to have one fix rate with adjustments that is followed in present taxation law. And the second law is to avoid double taxation on profits. Third law is the asset class or income type has differentiations. There is no law to write off yearly loss in an investment, income type or asset class however you account it.
3. Companies may merge down projects to share profit and loss. External influences like government policies will not stop any decision makers from their "life and living" but will generate more profit for the government at the expense of suffering of the investors and consumers. It is highly likely investors will pick up property at lower price then increase the rent. On a normal day, individual investors will enter the share market when they will have enough equity in the property.
4. The accounting standard we know they always keep one account to calculate profit loss and tax for one registered name. The term negative gearing was devised to ventilate dirty money (black money) for government from hardworking people. A uncorrupted government should replace the term from taxation law that any future attacks on genuine rights of people can be completely abolished.
5. Any property is an investment or may turn into. Government has the higher control in the supply chain of property/housing market. If a government has power to change accounting system/ standards to avoid their job, no government will do the job. Cock-blocking new realestate companies and others will be the job of a government.
6. Wealth & Moral dilemma: It is important that we understand that having wealth or growing wealth in the society is not immoral. Having a negative perspective about other's wealth is immoral. Starting from the first written law 10 commandments it was always fundamental to any law making process. The first limb of belief is if there is no government or external influence presents, society always guarantees equal opportunities. The second limb of belief is when people acquire more wealth than others they may help people in difficulties. It doesn't give the power to the society to loot or systematically discriminate the wealthy or who are trying to acquire wealth. To be more specific, the idea failed everywhere in the world who applied marxism for the benefits of "another ruling class". On my other pages, I presented the idea as a force against development or progress. I believe a change is always not a progress, progress or development are collective words. To clarify the idea, marxism predicts a revolution against a ruling class for an idea of alienation only.
7. The arguments about fluctuations of property price cannot be tumbled into the argument of negative gearing. Because, both parties will come to an end result of the "market price" where the policy will stand alone as a force against progress.
8. The policy maker using a metaphor "young australian" that represents majority of the voters. People prefers to own properties in their home countries, aged people with no properties at all, people will remain on government benefits most of their lives, people work just get into a home hardly can't plan buy a second property, people dont like to invest in property. There is a whole number of voters representing overall class of so called Australians who are metaphorically young Australians. In the contrary people rent owner occupied house after the time to get tax relief should be young Australians. People who can't properly plan and predict the growth of wealth in their own life or coming days. A whole generation of successful Aussi business owners, high income earners who love investing in property market. Now it could be a genious demographical calculation to find the voters who has nothing to do with property market likely to be paying higher rent just for having a negative perspective about growing wealth. Labour government is genious about fueling this mentality in the society. If you are really concerned about the people who are growing wealth successfully, you should just learn and follow those tracks. Society has a very big network of education system who can help you. You can literally fit some 5-7 europes inside Australia, so don't worry about running out of properties. On the other hand government should expand learning from the companies how to start national and state owned companies to generate profit. Always remember, you cannot develop a developed country, you can only expand it.
Is it a bad dream to see a serious change in property price and affordability of new buyers:
1. The answer is simple. In which process you are going to the goal. If the process making any new buyer rich or increasing their affordability. If the underlying capital for investment is standing still the whole idea of equal opportunity standing constant. If supply of property getting stuck in a limbo market will become opportunistic to grab a bargain in the transitioning period before going back to the normal trend. As I said investors will pick up the property at a lower price then increase the rent. The visible process actually encourages the investors to take a higher risk on capital because rent will cover mortgage in lower price. What it means is there will be zero change in competition between investors and new buyer. But investors will have the araantage to pass the interest hike to the rent. It will hypothetically fool ordinary people with some manipulative future data to fuel a failed dream. As I also said, the mentality fueled by policy will end up higher rent as a punishment. Government will grab two ways with some extra GST on rent, income tax from investors abolishing negative gearing. Underlying only one prediction is there will be more rate hike for external wars so property price may remain low for an extended period of time. This is absolutely a bogus idea that any policy can wipe out investors rather the policy may wipe out higher amount from new buyers. The situation only opens a door for very rich people with lazy money to pick up some bargain due a serious shortage of new listings. It is unimaginable that a government in civil country plan for the biggest tax grab in the history. Everyone should leave the parliament for few days and pretend like having funeral of Ayatollah khomeini
- Tax change may effect 50% new first home buyer or more where it may not reduce any investor at all who are ready with deposit and can pass the tax on rent
-Price fall will effect everyone in the market until its coming to normal trend
-Interest hike will severely effect first home buyer who can't pass it to rent.
-Property price will be steady only if supply is high and population under control. As i said, external influences like tax only increase inflation and suffering of consumers.
-long term multiplying increase in rent breaks the backbone on savings to create new home buyers.
-If there is govt support on first home buyer, it doesn't reduce any investor from the market. If there is change in government support you have assess the changes individually to find their status to participate in the changing environment. If govt doubles the grants on a day of recession there is a slight chance investor will have less money to invest. If you rely on savings of buyer everyone is in same position at the time recession. Property market will react right away if govt grand was doubled. If you are looking at a future that is always better for investors if new buyers are improving their skills to be come investors.
-There cannot be any good for people in the increase of tax. It multiplies attacks on day to day savings buy fueling inflation and continuous interest hike. All good signs of economy like employment, productivity, new investment everything starts falling over time. Labor policy always killed employment and standards of living of ordinary people in history.
Property or housing market:
SUPPLY:
Question 1: when supply of new land changes ?
Question 2: When supply of vacant land changes?
Question 3: When supply of newly built house changes?
Question 4: When supply of vacant dwelling changes?
Question 5: What are the variables to make above changes?
Question 6: When no changes are possible?
Question 7: Does it worth our time modelling data about 10% dwelling may remain vacant sometimes.
UNDERLYING ISSUE 1:
1. Crown Land (The Majority)
The NSW Government retains ownership of roughly 60% to 65% of all land in the state. This includes:
- National Parks & Nature Reserves: Protected areas that cannot be sold or privately developed.
- State Forests: Managed by the government for timber production and conservation.
- Crown Leases: Land owned by the government but leased to private individuals or companies (often farmers and graziers) for long periods.
- Unallocated Land: Vast, remote areas (especially in Western NSW) that are kept as Crown land.
2. Privately Owned Land
Private individuals, corporations, and non-government organizations own the remaining 35% to 40%.
- Residential & Commercial: Cities and towns (like Greater Sydney) are predominantly private property. When you buy a house or apartment here, you typically hold a Freehold (Torrens) title, meaning you truly own the land.
- Farms: A large portion of prime agricultural and grazing land in eastern and central NSW is privately owned freehold land.
3. Indigenous Land
Aboriginal and Torres Strait Islander peoples have recognized Native Title or hold freehold title over specific areas of land. In NSW, this accounts for a smaller percentage of the state's total land mass (around 0.2%), though First Nations peoples have cultural, spiritual, or co-management rights over much wider areas.
UNDERLYING ISSUE 2:
The processes by which state governments in Australia release and sell land include:
- Surplus Land Auctions: State governments frequently audit their portfolios and sell unneeded public assets or "surplus" land at public auctions. This includes former industrial sites, closed schools, or unused administrative buildings that are sold to private buyers or developers.
- Urban Renewal and Land Releases: Government property agencies and state developers (such as Landcom in NSW or DevelopmentWA) subdivide tracts of land and release new house-and-land packages or vacant blocks for everyday buyers.
- Direct Sale of Crown Land: While most Crown (public) land is retained, governments occasionally sell specific parcels if no other public agencies require it, if native title has been extinguished, and if the sale solves boundary or access issues.
UNDERLYING ISSUE 3:
Key Residential Zoning Categories in NSW
- R1 General Residential: The most flexible zone, permitting a mix of standalone houses, townhouses, and apartments.
- R2 Low-Density Residential: Protects classic suburban living. Statewide planning reforms allow dual occupancies (two homes on one lot) with consent in this zone.
- R3 Medium-Density Residential: Ideal for townhouses, villas, and terraces.
- R4 High-Density Residential: Permits apartment towers, usually situated near train stations and major town centres.
- R5 Large Lot Residential: Semi-rural lifestyle blocks for larger family homes.
DEMANDS:
1. Demand for temporary housing.
2. Demand for housing.
3. Demand for property+housing.
4. Demand for Land&property package+housing.
5. Demand for vacant land.
6. Demand for new land.
7. Demand for investment property (land, land+house)
8. Demand for commercial accommodation.
9. Demand for commercial property (land, land+house).
UNDERLYING ISSUE 1:
1. External tourism
2. Internal tourism
3. Temporary job
UNDERLYING ISSUE 2:
1. Employment
2. Affordability
3. Urban setups
UNDERLYING ISSUE 3:
1. Population growth
2. Availability
3. External influences on decision makers.