Capital Gains tax makes such a difference – not!

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.”

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As much at home writing editorials as being the subject of them, Cam has won awards, including the Canon Media Award for his work on the Len Brown/Bevan Chuang story. When he’s not creating the news, he tends to be in it, with protagonists using the courts, media and social media to deliver financial as well as death threats.

They say that news is something that someone, somewhere, wants kept quiet. Cam Slater doesn’t do quiet and, as a result, he is a polarising, controversial but highly effective journalist who takes no prisoners.

He is fearless in his pursuit of a story.

Love him or loathe him, you can’t ignore him.

To read Cam’s previous articles click on his name in blue.