Most investors are ordinary hard working Australians. Most investors are just trying to have something for their retirement because there is no way their super or the age pension will sustain their lives, given current life expectancy (which will increase over time as well) and the rising cost of living.
I had a look at 2014 statistics from ATO (because I'm a huge geek) and found that the majority of people in high income brackets (above 80k) had, on average, extremely low rental losses. Those on incomes of 200k-500k (adjusted taxable income, I.e. Adding back the losses to their taxable income) were reporting losses of about $700-$1000 on average. That's a saving of tax per investor of around $500 max. Meanwhile, there was an overwhelming number of investors in low income brackets (again, adjusted taxable income - so you can't argue that their income was low "because of negative gearing"). The rental losses claimed were between $5000-$20,000. Some of these people had almost no income from wages or other sources. In other words, they didn't save any tax from negative gearing. They are probably the same people who are on a pension. Most of them though were just ordinary people on average incomes. This is where most of the negative gearing is costing "Australia" tax revenue.
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10-05-2016 07:53 #51
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10-05-2016 07:53 #52
The tenant is paying the mortgage. Instead of paying 2k a month, you are paying way less. Yes, on paper there is still a loss even after NG. But you are getting a house paid off.
10-05-2016 07:54 #53
10-05-2016 07:56 #54
10-05-2016 07:56 #55
And six months into their lease - the air con is busted as is the hot water system. Which we have to pay for and fix immediately (accept and understand that) so thank heavens for our slush fund. We had to scrape together that whilst I am still on maternity leave.
Meanwhile in Canberra - the LL have dodgy cheap insulation and our heating bill will be ridiculous. Our bris home has top of the line insulation and double glazing. Urgh.
10-05-2016 07:58 #56
I certainly don't think most investors are 'fat cats'. As a long time renter, sadly I'm aware many are mum and dad investors..... that over extend, over capitalise, get greedy then can't afford to fix anything. We've had those LL's. They are the worst kind. They want their rent paid every fortnight but won't fulfill their own end of the TA and maintain the property bc they are broke.
10-05-2016 08:00 #57Senior Member
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The Following User Says Thank You to Freyamum For This Useful Post:
10-05-2016 08:03 #58
I get that you are upset and frustrated but instead of blaming those horrible investors make a plan and put 2 years hard work into making it happen. Get work night shift, work at a supermarket, tag team with your husband child care. Get a cheaper rental or move in with family if possible. Do whatever it takes if you really want to buy.
Or buy an investment property first in a cheap area and negative gear it. Come to the dark side
10-05-2016 08:03 #59
I know what I'm trying to say lol
10-05-2016 08:04 #60
Sydney's population is expected to hit 5 million this year 😬
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