El Doederino
Norm Smith Medallist
- Apr 22, 2018
- 5,135
- 10,975
- AFL Club
- Adelaide
So like super then?What kept housing prices down was public housing. The government not only sold off huge portions of public housing it once built, but they stopped building new ones. If you drive down the rental price it means less people can afford to cover the difference between the rental income and the mortgage every fortnight. Negative gearing only helps at tax time. As I said, if the government attacks the crises by trying to add 1,000 apartments through building cheap urban apartment buildings, the rental price would plummet.
We will never get any sort of tax reform that makes it harder for people to get rich. It will never happen. What I think would be a great strategy to do instead is cut some of the waste topics in maths and make investing an essential long term subject at school. In other words, teach kids how to make their money work for them.
For example, minimum purchase is $500 in shares plus fees of $30 on commsec. Instead of doing tax cuts, what if the government gave all kids once they turn 14, the working age $500 via a trust that can only be used to put into a managed stock fund (plenty of reliable ones out there with minimal risk) that can not be sold until they turn 18. It is statistically likely, those stocks would be valued close to $1000 inclusive of the stocks returns after 4 years. But what is also likely, out of site out of mind would kick in and most kids would leave it in to continue to grow. Some savvy investment may kick in and they may use their part time jobs to add to it while they are teenagers.