2 Tiered property market

I've been banging on for about a year now - that the new depreciation laws will create a 2 tiered property market.

I think the word is getting out via this article in The Australian.

 

True....The new non-depreciable group will expand over time. I suspect in time all Div40 may end to simplify the tax system. Or Shorten. He has envy for property investors and anyone with wealth beyond the aged pension so he could be the antichrist and announce that in a budget if he gets elected

 

How many properties does your local politician own?

 

Most of them own a Canberra property to milk the tax concessions only they get. I reckon its time they fell under the same laws as all of us.

I see Shortens reason for his envy of anyone with wealth.

 

The only problem with Shorten and his crew is ""they all start out as socialists and end up as capitalists""..

Something the Australian voting tax paying public understand and will vote on within the next 12 months..

 

His own front bench is loaded.

"Bill Shorten’s asset-rich frontbenchers, who have led attacks on the personal wealth of Malcolm Turnbull, will continue to have access to the benefits of negative gearing on dozens of investment properties under Labor’s plans to axe the lucrative tax break for new investors.

As the opposition ramps up its class-war attack on “millionaires”, The Australian can reveal many of Labor’s frontbenchers are multi-millionaires, courtesy of bulging property portfolios. Parliamentary records show Labor’s 45 frontbenchers own or have an interest in a total of 105 properties, including 57 classified as residences, and up to 48 classified as investments, holiday houses or blocks of land.

Probably paywalled so article is titled
Bill Shorten’s frontbench team rich in assets

Nocookies

 

Can’t access the article but this seems to be yet another blind spot for eager investors.

About two years ago I was perplexed to have a quasi-commercial property agent drive me home in an Uber (in Melbourne). He said he had been selling floors of otp residents and commercial at a time to Chinese investors in recent months but they had backed off after the Chinese gov investment restrctions. When I asked about their strategy given body Corp fees etc was he said they just want to hold for seven years to claim depreciation, and offset other income etc then exit their position just before the building warranty expires! Not the worst plan but from the sounds of it but will be interesting to see if the exit is as painless as he anticipated...
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