Treasurer Jim Chalmers said ‘there are too many properties empty around Australia’ as tight supply leaves many renters struggling to find somewhere to live.
Because there’s a big difference between an empty apartment in a city and an empty half the year holiday home out in the bush used by the whole family.
And why not give Australians an advantage in our own country? I’m fine with American companies having to pay more taxes towards us.
The best way to give domestic workers an advantage would be to really raise property taxes, but make them subtractable as a tax credit.
Credit… not deductible, so overall tax burden on workers would be lower.
This would be an easy and logical step away from taxing labour and moving to taxation of land.
I think a lot of people hear holiday home and think like, tropical bungalow. A holiday home here in Sweden usually won’t have a sewage connection, and oftentimes not even running water. You’d have to use a potty and bring potable water yourself. You could get these pretty cheap so long as you’re in a position where you have some money left over after expenses.
A proper house will easily be 10x the amount a holiday home is.
There are fancier ones of course, that can basically double as a home. Anyone I know that has such a thing owns it as a family (as in grandparents, siblings, etc.).
Well yes, not saying those aren’t a thing, but they’re not the only type of holiday homes. It’s not unfeasible for a normal person living above subsistence to be able to afford a holiday home.
Saying “oh you have a holiday home you’ve enough of an advantage” doesn’t really work in all cases.
Bought in 2013 and 2020 respectively, both for sale for months and I’ve spent about 10k in each in renovations. If you can’t afford 135k in mortgage and 20k in renovations over 10 years then maybe it’s ok to just keep renting… Even at the price the condo sold at this year (170k) that’s 220k + 10k over 3 years for a home and a holiday home, perfectly reasonable for a couple.
Because there’s a big difference between an empty apartment in a city and an empty half the year holiday home out in the bush used by the whole family.
And why not give Australians an advantage in our own country? I’m fine with American companies having to pay more taxes towards us.
The best way to give domestic workers an advantage would be to really raise property taxes, but make them subtractable as a tax credit. Credit… not deductible, so overall tax burden on workers would be lower.
This would be an easy and logical step away from taxing labour and moving to taxation of land.
If you can afford a holiday home, you have enough of an advantage already
Mate, I earn below median wage and I could buy a “holiday home”. This isn’t something fancy, it’s a shitty old house in the bush.
What I can’t afford is a house where jobs and people are, the city.
A holiday home is a second home. If you don’t have a home already and that’s what you purchase, it’s not your holiday home, it’s your only home.
So wouldn’t the fees be proportional to the price? The added taxes on a tiny cheap holiday home would be cheap too.
I think a lot of people hear holiday home and think like, tropical bungalow. A holiday home here in Sweden usually won’t have a sewage connection, and oftentimes not even running water. You’d have to use a potty and bring potable water yourself. You could get these pretty cheap so long as you’re in a position where you have some money left over after expenses.
A proper house will easily be 10x the amount a holiday home is.
There are fancier ones of course, that can basically double as a home. Anyone I know that has such a thing owns it as a family (as in grandparents, siblings, etc.).
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I think people are picturing that, because that’s what’s been happening elsewhere; foreign investors using luxury real estate as an investment.
Well yes, not saying those aren’t a thing, but they’re not the only type of holiday homes. It’s not unfeasible for a normal person living above subsistence to be able to afford a holiday home.
Saying “oh you have a holiday home you’ve enough of an advantage” doesn’t really work in all cases.
Price of my condo: 85k
Price of my cottage: 50k
Bought in 2013 and 2020 respectively, both for sale for months and I’ve spent about 10k in each in renovations. If you can’t afford 135k in mortgage and 20k in renovations over 10 years then maybe it’s ok to just keep renting… Even at the price the condo sold at this year (170k) that’s 220k + 10k over 3 years for a home and a holiday home, perfectly reasonable for a couple.