JC Political Thread - For All Things Political Part 2

[shane_3800]

The US subprime mortgage crisis set all that off. Led to the collapse of a couple large US banks.

There were whole neighbourhoods in the US where people just abandoned their homes because they couldn't afford the payments.

It was more that small financial institutions were selling dodgy loans up the tree to cash in quick, the big banks ended up buying too much of this **** not knowing or accidentally taking it on when smaller players failed, and it snowballed.

 

[VS 5.0]

i herd the US system might be pretty good, if u get a loan for a house and u cant pay it off u just leave the house and ur done zero debt, the bank has to sell the house to make there money back, i see that as a help also as the bank if they give out a big loan to a family they know cant pay it back then they get stuck with it if the family leaves so it would sorta self regulate as well

The seed of the GFC.

 

[J_D 2.0]

You seem to be fixated on this idea that rent is what is driving these investors.
If that was the case why is there 1,000,000 homes empty?

If they have paid off a fair amount of their existing properties then they have excess rent coming through the door that allows them to buy more properties.

The census recorded a million empty properties but who knows why they were vacant. Some of those homes could be holiday homes, some could be unoccupied because the occupants were away on holidays, some could have been Air BnBs that are unoccupied for part of the year, some could belong to foreign investors who just park their money here so their government can’t get at it (Chinese investors).

I expect most Australian investors would want the house occupied most of the time as paying 100% of the mortgage on an unoccupied house wouldn’t appeal to a lot of people as you are losing the rental income that could be obtained by renting it out.

Because if you forego the rent, say 300k over ten years, well you can claim that as loss, but the house never occurs any wear. When you have people renting for ten years there is wear on the house, so if you want to sell it at optimum value, then you need to spend some money on the house.
So if you leave it vacant you have 300k credit over ten years on capital gains the asset occurs, you might not get all that 300k but if you get a large percent, you forego 10 years of wear on your asset and might save more than the difference.

You can’t really claim foregone rent as a loss, you can claim the interest on the loan and any maintenance costs on the property if it’s being used as a source of income but if the property is unoccupied then by definition it’s not being used to produce an income so the tax deductions wouldn’t apply.

 

[AirStrike]

They aren’t building anywhere near enough houses whilst also letting in metric shittonnes of immigrants, trying as hard as possible to keep the housing and GDP ponzi going.

I’m not jealous of people who have 60 houses, I just see them for the (in aggregate) useless POS they are. Over 80% of “investment” properties are existing properties so they do nothing to increase housing supply, they just tie up existing houses preventing them from being bought by owner occupiers.

So yes they collectively have ripped of us workers in the process, because over 80% of what they do is depriving workers from owning their own home!

I love that you seem to think all investment owners are born with a silver spoon in their mouths and never worked for anything.

 

[J_D 2.0]

I love that you seem to think all investment owners are born with a silver spoon in their mouths and never worked for anything.

No. Everything they have worked for they deserve 100%. The unearned income they get from rents (other peoples money they worked for) is what I object to.

Even that hardcore capitalist Adam Smith, who basically laid the foundations for the free market system we have today, realised the folly of allowing unearned rents from land.

 

[shane_3800]

No. Everything they have worked for they deserve 100%. The unearned income they get from rents (other peoples money they worked for) is what I object to.

Even that hardcore capitalist Adam Smith, who basically laid the foundations for the free market system we have today, realised the folly of allowing unearned rents from land.

So if you have something to offer someone and both parties are happy and agree, but you aren't happy about that, and you think there should be some sort of government intervention, sort of like socialism, to stop this mutual agreement.
Makes sense to me.

 

[chrisp]

So if you have something to offer someone and both parties are happy and agree, but you aren't happy about that, and you think there should be some sort of government intervention, sort of like socialism, to stop this mutual agreement.
Makes sense to me.

It makes more sense than having a private buyer purchasing a house using after tax dollars competing against an investor buying the same place with financial assistance from the tax system. i.e. there is government intervention, but it is favouring the investors.

 

[AirStrike]

Go tell that to these people.

Maybe don’t breed if you don’t have stable housing.

 

[the_boozer]

Maybe don’t breed if you don’t have stable housing

Import a heap of refugees and put your own people out on the street. Thats the Aussie spirt the truth about what sort of people we really are.
I wont say what I think about single mothers raiseing little struggliers that end up with no repsect. Do you think those kids will get a fair go or end up hating society vandilising and stealing?

 

[the_boozer]

So you wants some plumbers, a few sparkys and a bricky to look after your super fund?

At the current rate these clowns are going your super is going to be worth bugger all. All I stated was the lot of them are a bunch of leaches, wouldn't the money be better off paying for you to buy a house of your own now. instead of wasting money paying off some other turn outs property? Most of the sparkys and plumbers I know own at least one house. if you want to talk about greed.