I was doing a bit of reading, and came across a slightly outdated article that outlined how many australians own investment properties.
so in total thats approx. 2.06 million properties, whether they be units houses, town houses whatever, that investors owned at this particular point in time.About 1.7 million property owners used negative gearing in the 2009 financial year, claiming rental losses as a tax offset. This generated a net rental loss of $6.5 billion for the financial year, Tax Office figures show.
They show about 1.19 million Australians own one investment property. About 294,000 have two investment properties, while those with three number 88,300.
Meanwhile, about 14,100 Australians have six or more investment properties, the figures show.
so my question is(which im sure alot will disagree with) should we even be allowed to own investment properties? or should we be limited to perhaps one per family? if you were to flood the market with 2 million properties around australia prices would crash. making it possible for all those struggling families that aren't investment minded to own a house instead of renting and helping others become wealthy?
now you can make the argument that that's bad luck, and you're motivated enough to educate yourself and take the risk of investing in an IP, but so what, maybe some prefer to not have the financial burden, or a simply to afraid of taking the risk which is fair enough. and you couldnt complain that it removes a form of wealth creation from you, because your own house to begin with would be far cheaper, savings you perhaps hundreds of thousands in some instances, allowing you to save more and invest elsewhere(perhaps not returning the riciculous gains of property in the past, but still returning). ive heard people say "investors are putting an affordable roof over families' heads who otherwise couldnt afford to buy". well if they didnt inflate prices to begin with maybe those families would eb able to get into the market?
this would also limit the potential for a crash, and control house prices, and keep banks a little more grounded. not to mention the gov would have stacks more money.
anyway i have nothing against investors by any means, in fact i intend on investing in property myself eventually, just wanted to get peoples thoughts on this. I'm sure there a flaws and reasons for why this couldnt/shouldnt happen and I'd like to hear them.