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  1. #151
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    Quote Originally Posted by hopeful1986 View Post
    Exactly. When we bought our property, we didn't think "oh yay now we get to avoid tax". We thought "what a great way to invest in our future, not have to rely on the government for a pension that might not even be around when we retire and worry whether we will have enough in our superannuation...and we have the added bonus of living comfortably and providing a financially stable home for our kids. Plus they get a decent inheritance". We're not cheating the government. We do pay our taxes. We chose property to invest in because we saw growth there. There was nothing sinister about our thought process and I'm sure a lot of others have done it for the same/similar reasons.
    Same. When we bought properties we did so in locations we knew would grow and we would profit from when it came time to sell as well as providing financial stability for our children knowing they will have funds to get them started as well as setting ourselves up for retirement. We have paid our taxes along the way including capital gains tax on occasions but don't get me started on that 😐

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    Quote Originally Posted by BigRedV View Post
    http://www.perthnow.com.au/news/opin...9dc-1456461687

    Negative gearing pushes first home buyers out of the market, or they pay a premium for it.

    So arguing that investment properties are providing rental property are probably the reason tenants are renting in the first place.
    I've been trying to articulate that as well, maybe not so succinctly.

  3. #153
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    Quote Originally Posted by BigRedV View Post
    http://www.perthnow.com.au/news/opin...9dc-1456461687

    Negative gearing pushes first home buyers out of the market, or they pay a premium for it.

    So arguing that investment properties are providing rental property are probably the reason tenants are renting in the first place.
    I'm pretty certain that people were buying investment properties before negative gearing came into existence.

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  5. #154
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    Quote Originally Posted by witherwings View Post
    I'm pretty certain that people were buying investment properties before negative gearing came into existence.
    Let's not pretend people buy investment properties to do renters a favour

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  7. #155
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    how is negative gearing going to bring down house prices? So the average house is around a million in Sydney. That's not even a fancy area. If negative gearing was removed that means that houses would fall right? To an affordable level which is supposed to be 3-4 times a families income. So let's say a two income house hold earns $130k a year combined. 130k x 4 equals 520k. So the million dollar home is now going to be worth 520k? You know to make if "affordable".

    I have some doubts.

  8. #156
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    Quote Originally Posted by BigRedV View Post
    Let's not pretend people buy investment properties to do renters a favour
    Obviously that isn't the purpose of investment. But there are plenty of people out there that would never be able to buy a house, or who just aren't in a financial position yet, particularly young people who have just moved out of home, or people immigrating to Australia, or just people who haven't been that great at saving, or have always been on low incomes.. Investment properties are attractive to investors because people need housing. What point are you trying to make exactly?

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    Default Negative Gearing - Politics talk

    People forget that most investment properties these days are positively geared - rental prices are much higher than interest payments. If anything, it should be cheaper to buy than to rent at the moment. Yes, house prices are up but so is the price of everything in this country.

    I think it's illogical to blame "negative gearing" on houses not being affordable and being the sole reason for pushing home buyers out of the market. Not least because most investment properties are apartments, which typically are not large enough to accommodate families. But also because as I said before, investment properties have always been around, negative gearing has not. And prices still went up. The most attractive thing by FAR about investment properties is the capital gain. The potential for wealth creation, is incomparable against other asset classes. Particularly given that most people using debt to finance the purchase so their initial investment is relatively small compared to the gain over time.

    Maybe you want to blame investors in general, weather they get a tax deduction or not.. But that's just an "us" and "them" mentality which doesn't do anyone any good.

  10. #158
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    Quote Originally Posted by Janesmum123 View Post
    how is negative gearing going to bring down house prices? So the average house is around a million in Sydney. That's not even a fancy area. If negative gearing was removed that means that houses would fall right? To an affordable level which is supposed to be 3-4 times a families income. So let's say a two income house hold earns $130k a year combined. 130k x 4 equals 520k. So the million dollar home is now going to be worth 520k? You know to make if "affordable".

    I have some doubts.
    Prices won't fall dramatically in Sydney - investors are mainly buying new units in our area and if they leave negative gearing for new dwellings it won't change a thing - it "may" make the older units slightly more affordable but it still comes down to supply and demand - sydney suburbs are not getting any bigger yet we have more people moving in so obviously there isn't enough dwellings of any kind for everyone , especially houses , so it pushes the prices up

    When we had the burst of first home buyers buying up everything to take advantage of the grant a few years back they all bought units and the majority of them rented them out anyway!

  11. #159
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    Quote Originally Posted by Elijahs Mum View Post
    Prices won't fall dramatically in Sydney - investors are mainly buying new units in our area and if they leave negative gearing for new dwellings it won't change a thing - it "may" make the older units slightly more affordable but it still comes down to supply and demand - sydney suburbs are not getting any bigger yet we have more people moving in so obviously there isn't enough dwellings of any kind for everyone , especially houses , so it pushes the prices up

    When we had the burst of first home buyers buying up everything to take advantage of the grant a few years back they all bought units and the majority of them rented them out anyway!
    Exactly so removing negative gearing will not make it affordable to live in Sydney.
    And with cheaper housing stock in other cities the prices would not drop enough for someone who can't afford to buy now to get into the market. It's not like house prices will drop $150 k on a $500k house.

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    Default Negative Gearing - Politics talk

    Quote Originally Posted by BigRedV View Post
    http://www.perthnow.com.au/news/opin...9dc-1456461687

    Negative gearing pushes first home buyers out of the market, or they pay a premium for it.

    So arguing that investment properties are providing rental property are probably the reason tenants are renting in the first place.
    Property prices are based on supply and demand right?

    So if for example there are 100 properties. 60 were owned by owner occupiers and 40 were owned by investors. If say all of those investors left the market because of the changes proposed, their 40 houses would be available for sale, so those 40 houses would then be available to the 40 renters. So supply stays the same and demand stays the same = no change in prices.

    Governments need to focus on increasing supply. Councils need to allow more subdivision. Apartments shouldn't only be built in inner city suburbs / the CBD.

    People need to embrace tiny house living (or at least living smaller), we should be creating more granny flats / income suites so that renters pay less rent so they can save for deposits. Governments could sell Crowne Land to create more supply.

    Both labour and liberal need to get real. Malcolm - Prices won't drop dramatically and Bill - young people won't all of a sudden be able to afford a house and to everyone who can't read past the media reports (not saying anyone in this thread) NG and the CGT discount benefit all kinds of people, not just those on huge wages with 3, 5, 10, 15 + properties. Don't punish everyone for trying to get ahead in life and to be independent from the government (pension, welfare etc). I'm not saying everyone who is on the pension or welfare aren't trying to get ahead in life, I just mean some of us are lucky and price ledges enough to own a home and an investment - there's a lot of tall poppy syndrome going on.
    Last edited by A-Squared; 26-02-2016 at 22:08.

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