+ Reply to Thread
Page 28 of 28 FirstFirst ... 18262728
Results 271 to 272 of 272
  1. #271
    BH-KatiesMum's Avatar
    BH-KatiesMum is online now Community Manager
    Winner 2008 - The most optimistic poster
    Winner 2014 - Most Helpful Moderator
    Join Date
    Oct 2007
    Location
    Perth WA
    Posts
    22,407
    Thanks
    5,372
    Thanked
    5,812
    Reviews
    3
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 postsAmethyst Star - 5,000 postsEmerald Star - 10,000 postsRuby Star - 15,000 postsDiamond Star - 20,000 posts
    Awards:
    Past Moderator
    200 Posts in a week100 Posts in a week
    Quote Originally Posted by witherwings View Post
    I don't believe that one group is necessarily smarter at investing than another. No.

    But if you're a taxpayer and you have a positively geared property, you probably made a better investment decision somewhere down the line than the person who is making tens of thousands of dollars of losses every year. Sure you get a tax break, but you're still making a loss. A small detail that a lot of people overlook when they get excited about their huge tax refunds.
    Most of what you say is correct - but some of this isnt quite.

    For many people, the negative gearing comes not from the cash flow but from the rental deductions due to depreciation and capital works. That can take a property which is cash flow positive to being a net rental loss for tax pretty quickly.

    Depreciation allowances are significantly higher for new buildings, and for townhouse type buildings with a lot of 'house' and not much land. The deduction can be $20 or $25k pretty easily for these properties.

  2. #272
    Join Date
    Aug 2009
    Location
    Sydney
    Posts
    2,090
    Thanks
    1,285
    Thanked
    1,181
    Reviews
    0
    Achievements:Topaz Star - 500 postsAmber Star - 2,000 posts
    Quote Originally Posted by BH-KatiesMum View Post
    Most of what you say is correct - but some of this isnt quite.

    For many people, the negative gearing comes not from the cash flow but from the rental deductions due to depreciation and capital works. That can take a property which is cash flow positive to being a net rental loss for tax pretty quickly.

    Depreciation allowances are significantly higher for new buildings, and for townhouse type buildings with a lot of 'house' and not much land. The deduction can be $20 or $25k pretty easily for these properties.
    Depreciation is still an expense, even if it's not a cash expense. It just means you paid a high premium for someone else's renovation, and now that renovation or new asset is losing value. Alternatively you can spend less $ on an older place and claim less depreciation while having exactly the same % in capital growth.


 

Similar Threads

  1. Change to Negative Gearing tax breaks
    By ExcuseMyFrench in forum News & Current Affairs
    Replies: 13
    Last Post: 17-02-2016, 10:56
  2. 8yo quite negative & whingy
    By ICanDream in forum Discipline & behaviour
    Replies: 10
    Last Post: 10-07-2015, 22:31
  3. 8DPT negative HPT
    By Lex23 in forum Conception & Fertility General Chat
    Replies: 3
    Last Post: 23-06-2015, 21:18

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
free weekly newsletters | sign up now!
who are these people who write great posts? meet our hubbub authors!
Learn how you can contribute to the hubbub!

reviews
learn how you can become a reviewer!

competitions

forum - chatting now
christmas gift guidesee all Red Stocking
BAE The Label
Versatile, premium maternity wear that you will love throughout pregnancy and long after. Cleverly designed for for all stages of motherhood so that you can 'Just be you (+1)'.
sales & new stuffsee all
Pea Pods
Buy 2 Award Winning Pea Pods Reusable One Size Nappies for only $38 (in your choice of colours) and receive a FREE roll of Bamboo Liners. Don't miss out, we don't usually have discounts on the nappies, so grab this special offer!
Special Offer! Save $12
featured supporter
HuggleBib
The HuggleBib is not "just another" baby bib. Sure, your child may be a messy eater who gets more food ON them rather than IN them, so you dread cleaning after feeding times! Well the HuggleBib is THE best solution to help with all these daily tasks!
gotcha
X

Pregnant for the first-time?

Not sure where to start? We can help!

Our Insider Programs for pregnancy first-timers will lead you step-by-step through the 14 Pregnancy Must Dos!