Comments by "John Woodrow" (@johnwoodrow8769) on "House prices fall when Reserve Bank ‘takes away the cookie jar’" video.

@joebloggs4362 Your talking utter crap. You can't "rollover" a Capital Gain from the sale of one investment to the purchase of another. You can only 'offset' a Capital Gain on the sale of one investment property against a Capital Loss from the sale of another investment property, or other asset class e.g. Shares. Net out a gain - loss. The very fact you claim that because only 50% of Capital Gain is taxable is somehow a tax rort demonstrates how little you actually know about the subject. It would be grossly unfair to tax the inflation component of the capital gain on an investment property (or any other investment). Only the real gain (adjustment for inflation) should be taxed. Prior to a point in time the investor had to do a series of very complicated calculation to strip out the inflation component. In order to simply that process the Australia Taxation Office, after considerable analysis, determined that taking 50% of the Capital Gain was a fairly accurate substitute for all that calculating. THAT is the reason only 50% of Capital Gain is subject to tax, to remove the inflation component. Other than the past couple years with spectacular yearly price rises it is surprisingly accurate. The price declines to come will correct that situation. P.S. You have to be pretty silly to argue taxation with a retired CPA.
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@vanya If interest rates were to go up to 8%+ (which they very well may, and that is really just above long term 'normal' rates) house prices will fall like a stone.
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@vanya Yes, immigration is a factor in driving up house prices, a real problem for young Australians wanting a foothold in the property market. Just one of the reasons I'm TOTALLY opposed to immigration. Environmental reasons is the main one. A 'big Australia' just means massive urban sprawl and the destruction of the environment.
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Affordably for first home buyers will remain exactly the same. First homes prices have always been a factor of the buyers ability to service the mortgage. The best time to buy a house is NOT when interest rates are low, it is actually when interest rates are sky high (you listening first time wanna-be home owners). When interest rates are sky high, the prices of houses are low because borrows (buyers) can only service a small mortgage. Then as interest rates eventually come down, repayments become easier, and the value of the home rises. Baby boomers actually did very well out of property buying when interest rates were 17%.
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As interest rates have been only a couple percentage for the past couple years (with house prices have gone through the roof) negative gearing has been of VERY little advantage to a property investor. You certainly can't blame 'negative gearing' for the spectacular rise in house prices in recent time. Artificially low interest rates are the primary cause.
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@vanya Capital gains tax is paid on the increasing value of an investment property at a person's marginal tax rate. That there is some 'minimisation' of tax on an investment property is a myth. Interest on the mortgage is an allowable deduction against other income, but with very low interest rates in recent times any advantage there is at best very minor.
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