Does that $13bn after they add up all of the capital gains they make from investors selling properties.
I would be interested in seeing a bar graph over the last 20 years showing how much revenue the government gets from positively geared properties and capital gains tax and then how much it pays out in negatively geared properties.
My guess is the government still makes more money from positive gearing and capital gains tax than NG.
Liberals seem to understand the bigger picture and the impacts of getting rid of all NG and reducing the CGD on the economy.
Thing is if you can only use NG on new properties, you will claim more NG than an established house where there's less to depreciate.
But the goal is to stimulate supply and make housing more affordable, then only using NG for new properties will achieve this.... So depends on what the objective is.
Problem being housing affordability is so low and I just can't see it changing. Perhaps the answer is better education about budgeting and investment options - like the one @witherwings mentioned (and yes I know this won't solve the problem because yes I can see it's not just about trying harder or being 'smarter', but every little helps, right!?
Personally we have chosen not to buy. Prices are ridiculously inflated and if you don't have a chip in the game (you or your parents) I just don't see the point in playing.
But again I have the option of buying a house cash in France so retirement is sorted. For now I'd rather rent a house close to CBD and being debt free.
I wouldn't like being a politic though, this situation is a mess!!
So if I had a property, charging $300 rent a week, owed $125k on it and it's negatively geared, what happens when it goes positively geared?
Your question is what to do with it.. Just hold on to it. It sounds like a good investment. Change your loan to interest-only repayments, it will give you more cash in your pocket to save or reinvest. You have to pay some tax on the profit you're making but so what? Better than getting a refund for making a loss.
You probably have a tonne of equity in there too, I assume the property is worth at least $300k which would give you equity of $185,000. You could buy another property using the equity.
SSecret Squirrel (11-05-2016)
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