Glenbhoy said:I have speculated on this before and am wondering what any of you property bears or bulls feel should have been done in the past, or could be done in the future to cool down the property market without causing the disastrous crash many on here are expecting (this is not intended to be yet another negative property thread). So here goes:
1. Stamp duty on non-ppr's should be increased, the present increment for investors is too small (in the sense that home owners pay virtually the same), surely this helps to make stamp duty an extremely regressive tax.
2. Tax designated area's should (in the main) be eliminated completely.
3. The percentage of interest deductible from rental income on an investment property should be gradually decreased - eg, next year allow 85%, the following year 75% etc, down to about 50% eventually.
4. Introduction of a property tax, say 1% on the value of non-ppr's.
5. Stricter enforceable controls by the central bank with regards to mortgage lending criteria (not overly keen on this interference myself, but...).
These are a but few musings of an ill-informed moaner, rip them to shreds
Yeah back in 1999?, however I feel that with supply of rental homes being what it now is, investors will be faced with the choice of paying the extra tax or releasing the property. Additionally, the incremental decreases in deductibility are quite small and signposted in advance so as not to cause a shock to anyone.dam099 said:Wasn't 3. kind of tried already (it was eliminated entirely) as a result of the first Bacon Report and ended up being a disaster as it reduced the supply of rental accomodation causing a shortage and rent increases. They ended up reversing it a few years later so I can't see it being tried again.
This was also tried although very half heartedly back in 1998/99 - back then it was announced that all gains on development land would be taxable at 20% until 2002, at which stage it would revert to 40% - that is obviously the case now then is'nt itmaybe capital gains on investment properties and development land should be much higher and drop stamp duty for PPR's. if people arent making as much on capital gains they will have to rely on rental yield and some sanity may return to the market.
Any such proposal would need to restrict the buyers ability to walk away from the bids. This is a double-edged sword.sonar said:I'd like to see increased regulation of estate agents and the bidding process. The point where the "rubber meets the road" - the point at which these absurd prices are being set - is very susceptible to deceit. You could be bidding against the seller himself disguising his voice on the phone to the estate agent for all you know !
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