The demand for real property has never been higher. With low interest rates, investments tax breaks, record high clearance rates, and other factors causing fear of a property shortage in the future. This is not far off, as low income earners need around half a million houses to accommodate their housing needs despite the high demand.
Simon Schrapel, president of the Australian Council of Social Service is convinced that the existing tax policy is part of the problem, as it should encourage not just purchasing property – but building new ones. Property spruikers lead investors to borrowing rather than creating savings for future investments. SMSF rules should be reviewed as the vast majority of SMSFs are used for property investments.
Read more about this on the Sydney Morning Herald website.