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  1. #31
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    For anyone interested this article helped get my head around things http://theconversation.com/sacred-cow-no-more-what-proposed-changes-to-negative-gearing-really-mean-54737
    (Sorry if the link doesn't work, I'm shocking at them)

  2. #32
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    Default Negative Gearing - Politics talk

    Haven't read any responses.

    I like labors policy - current properties/property owners aren't affected - they get a reprieve. And you can still negatively gear if you buy a new property.

    It's designed to help make property more available and affordable for first home buyers which I agree with.

    Don't know were the libs stand.
    Last edited by VicPark; 21-02-2016 at 19:40.

  3. #33
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    I prefer the idea of capping negative gearing properties than restricting to new properties only.
    I think restricting to new properties would end up being unaffordable to mum and dad investors. Could be wrong since I have no experience buying off the plan, but wouldn't you need to pay a large deposit or pay a mortgage that you can't claim as an expense until the property is actually available for rent?

    We have one investment property that's technically positive geared, we moved house and kept the old one because it was in a good area in demand for rent.
    We are aren't over reaching, but hardly rolling in it either being a household income of 70k before rental income. We intend to keep it long term to be positively geared as an income source when we retire and hoping to add 1 or 2 investments when I'm back to working full time down the track which would most likely start off negativity geared.

  4. #34
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    Quote Originally Posted by BigRedV View Post
    I struggle to believe that the bulk of negatively geared properties are owned by people earning $80k.

    Maybe in other areas but it would be impossible in Sydney.
    Could it be that they are using their investment property (ies) to reduce their taxable income to 80k?

    Negative Gearing costs the federal government 4 billion dollars a year, how anyone can think that it is reasonable to have the government and the tax payer subsidise individuals property investment is beyond me.

    We had an investment property for a while and I honestly thought it was a joke when the accountant told me what we could claim for it and how much it reduced our taxable income when essentially we were building our wealth. It is such a bizarre policy and from what I understand Australia is one of the few countries that allows negative gearing so I am sure the sky would not fall in if the brakes were put on it if most other countries manage OK (particularly given Australian housing is so unaffordable, maybe negative gearing really is the culprit, or partly anyway)

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  6. #35
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    Quote Originally Posted by Jayteapot View Post
    I prefer the idea of capping negative gearing properties than restricting to new properties only.
    I think restricting to new properties would end up being unaffordable to mum and dad investors. Could be wrong since I have no experience buying off the plan, but wouldn't you need to pay a large deposit or pay a mortgage that you can't claim as an expense until the property is actually available for rent?

    We have one investment property that's technically positive geared, we moved house and kept the old one because it was in a good area in demand for rent.
    We are aren't over reaching, but hardly rolling in it either being a household income of 70k before rental income. We intend to keep it long term to be positively geared as an income source when we retire and hoping to add 1 or 2 investments when I'm back to working full time down the track which would most likely start off negativity geared.
    What about capping the amount of time you can use negative gearing on your investment property? I.e. 5 years?

  7. #36
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    Quote Originally Posted by twinklify View Post
    What about capping the amount of time you can use negative gearing on your investment property? I.e. 5 years?
    A lot of investors get out before this anyway (unless the market crashes and they want to hold on to it until it goes back up in price).

  8. #37
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    Quote Originally Posted by twinklify View Post
    What about capping the amount of time you can use negative gearing on your investment property? I.e. 5 years?
    Might be enough for people buying and selling to make capital gains. But that's only going to work in markets going up quickly and really only going to suit people wheeling and dealing in the property market.

    5 years isn't enough time to pay down an investment mortgage to the point of it being neutral or positive geared to make it attractive for a long term investment for mum and dad investors trying to set up an income for retirement

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  10. #38
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    I've discussed my views on negative gearing before in another thread but just want to say, getting rid of the 50% discount on capital gains, while I do believe it is more equitable (if, and only if it is replaced by another method similar to the scrapped indexation method), it will negatively affect property prices in the short run. That might be good for people who don't own properties and want to get into the market, but will really suck for investors who want to cash in the discount before It's scrapped.

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  12. #39
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    Default Negative Gearing - Politics talk

    Quote Originally Posted by NoteToSelf View Post
    Could it be that they are using their investment property (ies) to reduce their taxable income to 80k?
    Not sure, but quite probable I assume which would mean the claim that most people who negatively gear are earning $80k is very misleading.

    My husband and I got knocked back last year to buy an investment property (one that was in Adelaide and well under $200k) even though we bought our house in 2009 for $550k and it was recently valued by the bank at $1.15 million. You'd think with all that equity and 2 people working we would be able to borrow money for a cheap apartment...so I struggle to believe that investors are people earning $80k

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    Default Negative Gearing - Politics talk

    Quote Originally Posted by BigRedV View Post
    Not sure, but quite probable I assume which would mean the claim that most people who negatively gear are earning $80k is very misleading.

    My husband and I got knocked back last year to buy an investment property (one that was in Adelaide and well under $200k) even though we bought our house in 2009 for $550k and it was recently valued by the bank at $1.15 million. You'd think with all that equity and 2 people working we would be able to borrow money for a cheap apartment...so I struggle to believe that investors are people earning $80k
    Was it a 1 bedder on Anzac highway like you were originally looking at?


 

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