I'm just amazed that the average negatively geared investor is "losing" $200 per week on their investment. Yet there are people here who think that removing NG will have no effect on prices. A typical $10,000 per year tax deduction foregone would have a massive impact on new investor demand.
I'm just amazed that the average negatively geared investor is "losing" $200 per week on their investment. Yet there are people here who think that removing NG will have no effect on prices. A typical $10,000 per year tax deduction foregone would have a massive impact on new investor demand.
It's interesting how commonly you hear that negative gearing has no impact on housing prices, but talking about the idea of removing it makes politicians so nervous and agitated.
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours. Those who can, do. Those who can't, teach. "It's an itchy blanket, it's designed to remind you how lucky you are"
It's interesting how commonly you hear that negative gearing has no impact on housing prices, but talking about the idea of removing it makes politicians so nervous and agitated.
I'm game - It could be a lot of fun to see it removed? Specifically to see how long it takes 'em to reinstate it. This time. With me adopting the attitude of "Let the devil take the hindmost" in the interim ... But I'm obviously just a right proper bastard - LOL!
I'm just amazed that the average negatively geared investor is "losing" $200 per week on their investment. Yet there are people here who think that removing NG will have no effect on prices. A typical $10,000 per year tax deduction foregone would have a massive impact on new investor demand.
Thats probably because you don't understand negative gearing or deliberately misrepresenting it. Removing NG will not be "$10,000 per year tax deduction foregone". It will merely be deferring the tax deduction.
Currently, if a PI paid $10,000 LMI on a property purchase, that cost is spread out over 5 years. If the government decided to change the rule to make it tax deductible in the first year, do you think there will be a massive increase in the number of property investors? It was always tax deductible ... just a change in timing.
I'm game - It could be a lot of fun to see it removed? Specifically to see how long it takes 'em to reinstate it. This time. With me adopting the attitude of "Let the devil take the hindmost" in the interim ... But I'm obviously just a right proper bastard - LOL!
I think removing negative gearing would produce unforeseen consequences. There would also be a "panic" playing out.
Quite a few people that talk about negative gearing don't know what it actually is. Recently I talked to a person that talked about buying and negative gearing a property where rental income was supposed to be in excess of P&I repayments.
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours. Those who can, do. Those who can't, teach. "It's an itchy blanket, it's designed to remind you how lucky you are"
Quite a few people that talk about negative gearing don't know what it actually is. Recently I talked to a person that talked about buying and negative gearing a property where rental income was supposed to be in excess of P&I repayments.
It sounds like that person knows exactly what NG is. The rent can be higher than the P&I costs, but the property can still be negative geared due to additional costs such as land tax and rates. Also, by taking full advantage of depreciation allowances, you can be negatively geared but cash-flow positive.
... Also, by taking full advantage of depreciation allowances, you can be negatively geared but cash-flow positive.
Christ, what a desperate way to live - Relying on the depreciation of your asset as allowed by the ATO to push you over the line to being cash-flow positive.
Better you than me Shady. For mine anyway.
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
Christ, what a desperate way to live - Relying on the depreciation of your asset as allowed by the ATO to push you over the line to being cash-flow positive.
Better you than me Shady. For mine anyway.
What's desperate about minimising tax? I only pay the tax I am required by law to pay.
Why do you deliberately choose to pay more tax than you are required to pay? Are you a charity or something?
I'll let you into a secret... the ATO doesn't think any more highly of you just because you choose to pay unnecessary tax.
I reckon you're a sucker for paying more tax than required!
Quite a few people that talk about negative gearing don't know what it actually is. Recently I talked to a person that talked about buying and negative gearing a property where rental income was supposed to be in excess of P&I repayments.
Did you know that gross rental returns exceed the gross interest cost on investment properties owned by individuals by a massive $9 Billion in 2012 and that was before the interest rates fell.
Any expressed market opinion is my own and is not to be taken as financial advice
Why do you deliberately choose to pay more tax than you are required to pay? Are you a charity or something?
That's not what he was implying.
He's laughing at the precariousness of it.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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