Capital gains tax changes seem to be working as intended on investors, though a fall in owner-occupier loans has more to do with interest rates
Get our breaking news email, free app or daily news podcast
The combination of capital gains tax changes and interest rate rises and a time of rising unemployment and falling real wages have sent the number of new housing loans in the September quarter tumbling.
Turns out to reduce house prices all you need to do is finally have a taxation system that does not treat housing as a tax minimisation scheme and also get the Reserve Bank to hike interest rates due to a massive oil price shock, while at the same time an AI boom is causing the cost of housing construction to rise.
Continue reading...
