Digital Finance Analytics (DFA) Blog
"Intelligent Insight"
From The Conversation. In the current housing tax debate a number of studies have come out arguing that while prices will fall (by varying amounts) rents will not be affected. That rents will be unaffected is surprising and (in my view) wrong. Outside of the heat of an election, the Henry Tax Review’s comprehensive review … Continue reading “Why rents will rise under Labor’s negative gearing proposal”
From CoreLogic. Utilising quarterly household income data from the Australian National University, CoreLogic has developed quarterly measurements of the ratio of property prices to annual household income. This data is extremely valuable when looking to measure housing affordability. The measure is available at a number of different geographies from SA2 regions (generally about the size … Continue reading “Property price to income ratio is rising in Sydney, Melbourne and Canberra”
From The Conversation. Over the last 25 years, home ownership rates have fallen sharply for young Australians. Between 1982 and 2011, the home ownership rate for young adults aged 25 to 34 years dropped from 56% to 34%. Growing concerns about their home ownership prospects have prompted those in Generation Y (defined as 18-35 years … Continue reading “What’s the key to home ownership for Gen Y?”
From The Conversation. Housing affordability and tax reform have shaped up to be two of the defining issues this election. The Property Council of Australia – which describes itself as “the Voice of Leadership” – has helped frame the debate on behalf of its 2200 company members. The council began as the Building Owners and … Continue reading “How the Property Council is shaping the debate around negative gearing, taxes”
Excellent post from Cameron Kusher, CoreLogic RP Data, discussing the impact of the higher tax being imposed by several states on foreign investors in the context of state tax raising – they are highly dependent on stamp duty to support their coffers. He concludes that ultimately these changes may deter some foreign investment but these … Continue reading “Taxing Foreign Investors Harder”
From Business Insider The New South Wales government is after a bigger slice of the overseas investment flooding into Sydney’s booming property market, with treasurer Gladys Berejiklian announcing today that next week’s state budget will include foreign investor surcharges on stamp duty and land tax on residential real estate. A little over 20% of property … Continue reading “Foreign Investors Taxed To Billy-o”
AAP says Australia’s major banks face soft profit growth amid growing macroeconomic risks linked to low interest rates and government tax policy, according to Fitch. However. the agency has reaffirmed the ratings of all four major Australian banks at AA- with a Stable Outlook. The credit rating agency believes low interest rates and government tax … Continue reading “Bank Profits Under Pressure – Fitch”
Long overdue changes to negative gearing and capital gains tax would save the Commonwealth Government about $5.3 billion a year, according to a new Grattan Institute report. Hot property: negative gearing and capital gains tax reform shows that the interaction of a fifty per cent capital gains tax discount with negative gearing distorts investment decisions, … Continue reading “Grattan Institute Defends Negative Gearing Reform”
From Business Insider. Australian prime minister Malcolm Turnbull has taken negative changes off the table for the May budget. The announcement was made at a doorstop in Sydney this morning by Turnbull and treasurer Scott Morrison who noted that the federal government “had the common sense to leave the system as it is”. They criticised … Continue reading “Negative Gearing IS Off The Budget Table”
From Australian Broker. The capital gains tax (CGT) will be cast into the spotlight with a new proposal to tax profits on the sale of houses over $2 million to be released by the Australia Institute. According to The Australian Financial Review (AFR) the report by the Australia Institute, to be released today, will show … Continue reading “Report calls for review of tax exemptions on family home”