Would 90% CGT on property (including PPRs) help?
There is only one way to reduce the chances of another property bubble and that is an accommodation policy that does not require every family to borrow an amount equivalent to several multiples of their income in order to have somewhere to call home.
The idea that this proposal is considered a 'reform' tells me one thing - there will be another bubble, the only difference being that if this policy is followed it will be a longer build up!
I am sorry but this is ridiculous.
For a family to have some place to call home requires the equivalent of several man years of work.
Unless you have slave labour on building sites and cement factories etc. a home is going to cost several multiples of a years earnings. This has to be paid for in some way. A developed mortgage market allows the purchaser to spread out that cost over a long period.
Many countries do not have well developed mortgage makers, in those countries it is normal for generations of a family to live together because people cannot raise the money to build a home. Our belief that we have a housing supply crisis is based on the norm of nuclear families in their own homes.
Excellent observation and one that I haven't seen mentioned to date as a key factor in the rent or buy debate. With the exception of the Public service virtually all of us are looking at post retirement income from defined contribution pension schemes. It is alarming how large a pot you now need to obtain a reasonable annual income from this source. there is a huge benefit to those of us who are home owners in knowing that our mortgages will be paid by retirement and our outlay post retirement will be consequently reduced. In my own case I can certainly state that when retirement comes my pension income will not be in any way sufficient to support either an ongoing mortgage or rent payment. Is this a further "unintended consequence" of the increase in long term renters? I.e. Who will supplement the rental payments for these people after they retire?Pension planning at the moment in Ireland is based on the assumption that by the time you have retired, you have paid off the mortgage and are living rent free.
Have you not heard of renting?
Renting may have its advantages but it is fundamentally more expensive than buying.
I have to disagree! If I look at the typical Swiss family, the only point at which cost would equal that of buying is when they are raising a family, so may be 18 or 20 years out of a life time. At all other points rental costs tend to be much lower because people tend to rent accommodation that is appropriate to their needs.
I have to disagree! If I look at the typical Swiss family, the only point at which cost would equal that of buying is when they are raising a family, so may be 18 or 20 years out of a life time. At all other points rental costs tend to be much lower because people tend to rent accommodation that is appropriate to their needs.
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