Raising the minimum deposit requirement for residentail property - TopicsExpress

Raising the minimum deposit requirement for residentail property purchases is good for first home buyers because it reduces their risk of being left with negative equity in the event of a price correction (as witnessed in the US). However, it also prevents other home owners from moving up the chain, as most people have to sell in order to buy. The end result will be cheaper property for landlords and Chinese speculators. The affordability problem can be solved by: 1. Taxing rental property 2. Double taxing empty rental properties 3. Removing the tax rebate on interest payments by landlords 4. Making interest earned on bank deposits tax free to encourage saving 5. Building more small units Investors in rental property soon put it back on the market when it is no longer viable. Houses are for living in, not for speculating.

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