I wish they would abolish it so that I could get a decent yield. Unfortunatley there is very little likelihood of it
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Originally posted by AusProp:I wish they would abolish it so that I could get a decent yield. Unfortunatley there is very little likelihood of it
Hi AusProp,
Could you explain more on what you mean a decent yield? If we couldnt -ve gear, i wouldnt purchase any -ve geared property then and so would many….
Cheers,
sisI agree 100% Bernard. The adverse affect on the economy coupled with the domino affect that would precede it leaving in its wake many victims from varying situations, would be economical and social suicide. Robert Kiyosaki touches on this in his second book and outlines the events that happened in the States I think, where a similar strategy was adopted. Needless to say, it didn’t work out to well for many across the board. Even those who beleived they were far enough removed from real estate to be affected.
Originally posted by admin10175:Regina,
the reality is that when Paul Keating abolished negative gearing in 1986, property investing ceased and consequently rentals soared. It only lasted 18 months because by trying to hurt the wealthy, the Hawke government actually hurt those at the bottom end of the economy. And that was when there was public housing!
My firm belief is that it won’t happen again – which is what I tell my residential property clients.
but what is your particular concern?
Bernard Kelly [email protected]
With 32% of Australians renting the Gov’t needs private rental housing to maintain social justice. There is no way that the Gov’t could afford a return to gov’t housing as it would cost a lot more than what they currently lose through negative gearing.
And with the current baby boomer generation approaching retirement with inadequte superannuation savings, the government must understand that attractive gearing laws provide the opportunity for creating wealth that will suppliment retirement income.
I think the laws may alter but essentially negative gearing is going to be around for quite some time to come.
I think the US has tax relief on investment losses up to a certain level.
We may see a ceiling put in place that may mean an individual can only claim losses from investment up to a certain level but I’m sure there will be ample opportunity for the community to debate any proposed changes.
Yes but as you will see from this discussion board there seems to be an increasing desire to achieve positive gearing rather than negative gearing i.e. a general realisation that investments should make money not lose it. I am trying to say that people buy properties for different reasons – some to achieve tax write offs, some to generate cash. Negative gearing has distorted the property market so much that it is hard to determine what the income from the property is, as you are relying on tax deductins and future capital growth (pass me a crystal ball!). If it was just based on annual returns (or yield) it would be clear cut. The abolition of neg gearing would boost rents so much that, tax deductions aside, the returns would probably be about the same as prior to abolition anyway. I read a very compelling article arguing for abolition which I can’t seem to find unfortunately. One of it’s points was that neg gearing has created an artificial diversion of investment into bricks and mortar to the general detriment of australian industry – could this be partly responsible for our declining standard of living and continued reliance on imports/inability to produce our own goods?? Well I could go on all day, but the reality is it won’t be abolished anyway, so it’s all conjecture. Would welcome others comments on this….
Originally posted by Still in School:Originally posted by AusProp:I wish they would abolish it so that I could get a decent yield. Unfortunatley there is very little likelihood of it
Hi AusProp,
Could you explain more on what you mean a decent yield? If we couldnt -ve gear, i wouldnt purchase any -ve geared property then and so would many….
Cheers,
sisneg gearing has created an artificial diversion of investment into bricks and mortar to the general detriment of australian industry – could this be partly responsible for our declining standard of living and continued reliance on imports/inability to produce our own goods??
Dear Auspop
i dont believe for a second that negative gearing has anything to do with the fact that we using more and more imports but more to do with the fact that other countries can produce it cheaper, plain and simple. Sunbeam has just started producing their appliances in china now so that it can sell them here for the same amount as the Australian made ones but make more profit.
“OUR DECLINING STANDARD OF LIVING” What the??? how can you say our standard of living is declining.The abolition of neg gearing would boost rents so much that, tax deductions aside, the returns would probably be about the same as prior to abolition anyway.
But the problem with that is then vacancies increase dramatically because more people start buying house instead of renting.
thanks simon
Is it true that there are plans to change Negative Gearing rules or abolish them all together some time in 2005? Any information about that?
Thanks.yep, but not in Australia may be Cambodia I guess
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Originally posted by Chan$:yep, but not in Australia may be Cambodia I guess
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom][^][
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PropertyGuRu
Who want to be billionaire?Every now and then this is rasied in the media as a topic for discussion.
I am not aware of any concrete plans to abolish or change negative gearing.
Cheers,
Simon Macks
Mortgage Broker
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
When Mark Latham become Labour Leader he mention this topic as well.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]Regina,
the reality is that when Paul Keating abolished negative gearing in 1986, property investing ceased and consequently rentals soared. It only lasted 18 months because by trying to hurt the wealthy, the Hawke government actually hurt those at the bottom end of the economy. And that was when there was public housing!
My firm belief is that it won’t happen again – which is what I tell my residential property clients.
but what is your particular concern?
Bernard Kelly [email protected]
There is an old saying ‘if you think it will or if you think it won’t you are probably right’
I recently had discussions with a tax Barristor who writes for the tax office, all I can say is “nothing stays the same”
As long as you are building equity and have a good cash flow you have nothing to fear. A fool and their money are easily parted.Regards Phil
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