The Labour party beleives that a capital gains tax will make housing more affordable, despite this not being the case anywhere in the world.
Their claim is that every other country has a capital gains tax…and that is about the depth of their argument.
Our closest neighbour, Australia, has a comprehensive capital gains tax…how is it working with housing affordability there?
Parts of the Sydney property market are going ”ballistic” as buyers take advantage of lower interest rates to gain a foothold.
There were 693 auctions scheduled across the city on Saturday and with 459 of the results reported to the Fairfax-owned Australian Property Monitors, the clearance rate was 83.2 per cent.
Social media was full of tales of parents spending $1 million-plus to secure their children inner-city houses. A two-bedroom terrace in Rainford Street, Surry Hills, sold to a 23-year-old university student for $1,094,000 – $119,000 above the reserve.
On the upper north shore, Pymble Richardson & Wrench agent Don MacLennan said the lower end of his market had gone ”ballistic”.
Not well then it would appear.
Mr MacLennan sold a three-bedroom house on 843 square metres at 3 Yarrara Road, Pymble for $1,285,000 by private treaty last week.
”Three years ago, it sold for $905,000; it had a lick of paint and was immediately let,” he said.
”Most people said the house was too small but the buyer is living in a 100-square-metre flat in Hong Kong.”
On Saturday four bidders slugged it out for a five-bedroom house at 32 Pymble Avenue, Pymble, which sold under the hammer for $3,325,000.
”Our reserve was $2.9 million and the first bid was $2.9 million, which caused some consternation,” Mr MacLennan said. ”There was a very aggressive doctor, a merchant banker and a Chinese family – it was a very interesting mix.”
The upper end of the ”stodgy” north shore market is also starting to lift after a few years of flat activity, he said.
”It’s caused by business confidence, primarily. We are seeing more buyers in the upper end than we have seen in three years.”