Australia housing bubble

[zipping]

Originally Posted by vztrt

Negative gearing has been around since the 80s yet house prices didnt start to deviate from its normal tangent line (median house price vs average wage) till the government halfed the cgt. Making housing more desireable wasnt a good move.

Yes but increasing CGT would impact the stock market greatly I would assume?

[FairmontGS]

Originally Posted by zipping

Yes but increasing CGT would impact the stock market greatly I would assume?

There would be a rush away from housing to equities. That's not necessarily a bad thing but then the price of stocks will rise - not because they are better stocks but because they will be bid up. Dangerous territory.

[vztrt]

Originally Posted by zipping

Yes but increasing CGT would impact the stock market greatly I would assume?

It would impact the politions pockets.

There should also be a limit on the amount of houses that are negatively geared and only Australians citizens should be able to buy propertly below 5 million.