Neo-Feudal Dictionary

Neo-Feudal Dictionary (Australian version)

**Bank **
Establishment for keeping or lending money
Money was originally invented to disguise and replace the spoils of war.
Today, ‘spoils of war’ has been replaced by the ‘spoils of tax rulings’

**Bankrupt **
Financially ruined – usually a negative connotation - unless one is a shareholder in the bank doing the ‘rupting’.

Increase in prices and fall in value of money
Well thought out tax design ensures rising inflation & devaluation of labour

Compensation for loss – see negative gearing

First home owner
A gullible debtor - easily lured by 100% property loans and driven by the desire to escape from the rental trap.
Typically has no idea that Treasury tax rulings are responsible for his/her dilemma, often blames Reserve Bank for situation

The bane of home-owners but the bread and butter of banks
Good scavenging opportunities for individual investors or investor clubs.

Housing bubble
Global phenomena where easy credit, selfishness and tax breaks come together to build a fool’s paradise

The sacred cow of the 21st century.
Typically welfare dependant (see ‘Loan interest deduction’).

Loan Interest Deduction
A form of welfare - currently not means-tested

Negative Gearing
See Indemnity

Resurfacing of original feudalism.

Progressive tax system – theory
Workers pay tax proportional to their income (may still exist somewhere)

**Progressive tax system **– reality (Australia)
The more a worker earns, the greater the tax deduction claimed.

Real estate agent
Likened to a strangler fig, RE agents appear to leech off of home owners.
Apparently one hour of phone negotiation between PI and property seller justifies siphoning off monies in excess of what a highly experienced surgeon receives in an honest week of work. Yes, go figure.

See investor (tax treatment of)

See ‘Real estate agent’

Seems committed to fuelling inflation via tax anomalies

I think a need a sit down and a cup of tea after that…

Can only take so much at this time of day :wink:

(Some great observations there!)

In Australia property investors can write off 100% of their mortgage interest, council rates, management fees, letting agent fees, advertising costs, depreciation, maintenance costs etc. every year against both their rental and salary income to reduce their taxable income.

Owner occupiers can write off nothing.

This puts investors at a huge advantage over potential owners at auctions (most residential property in Australia is sold at auction).

All the recent increases in interest rates only increase the available tax write off for investors and push home ownership further out of reach for renters.

It’s a disgusting system.

How is it all financed; but by our familiar Securitisation Vehicle. Australia property prices will be as steady as a rock!!!

A high proportion issued in EURO. It seems that our(EU) Bankers and International Financiers have an insatiable bent to buy up everybody else’s rubbish!

Might be something to do with the 9% interest rates :astonished: