Brisbane already edging past Sydney on last 5 years growth

You must have me confused with someone else .

I am a very private person and never talk about my deck .

 

That seems to be the standard response thes3 days.

 

I assume these was part of estate, hence kids may have sold what previous generation bought, so unsure what they paid....
If new changes from CG tax discount from 50% will be reduced to 75% (around 56% increase) will be effected it will make less attractive selling, wouldn't you say so? Would it impact your investment strategy forward?
Why sell anyway?

 

No really it will be grandfathered.....opportunity cost is consideration.

I am selling because...I don't to deal with constant demand....property is labor intensive..and it has time of growth which you need to take advantage of.

Also...in the future...you never know there maybe an inheritance tax....things always change you need to move with the times....

 

The sale of existing IPs has not been yet established whether it will be grandfathered for CG tax but yes for Negative Gearing....can someone confirm this that knows for sure?
By listening to below, that was my understanding, yes or no?
Here's how a Labor win would affect your property investments | THINK TANK
and yes there may be some biased there but.....
Interesting point of note to me was the closing remarks, how Australia concentrates on personal income tax (the more you earn the more you will pay), how property is the most taxed asset (ongoing plus new cost of over 40% paid out to government) no wonder property in Australia is so expansive!
I always said if this country’s wealth is located 50% in real-estate and around 20% in Super….where will the government go after if they need some share of the pie?

 

Corelogic don't agree with you, they are not predicting falls in Brisbane in the next three years.

 

Labor has come out said existing IP when sold will be grandfathered.

The real issue is they need more tax revenue.....

 

At 7:15 minutes into the talk they actually mention CG tax on existing assets may not be grandfathered, hence why I confused, where did Labor say that?

 

Stop readin' unreliable sources with vested interests...recipe for disaster....the knoz nutin'. Here youse go....

https://thewest.com.au/news/wa/indu...y-will-hurt-wa-property-market-ng-b881151541z

How will Labor’s negative gearing rules apply? - Cuffelinks

Dems ...how its rolls.......

 

@sash,
I never debated negative gearing, yes this is to be grandfathered from 1/1/2020, I was discussing Capital gains tax!

 

Capital gains tax will be discounted only 25% instead of 50% after 1 Jan 2020 if Labor wins...thus if you made a $200k profit after expenses....you will need pay tax on 150k....at your marginal rate.

Dems how it rolls.....but I don't think it will pass even if labor wins.....

 

so for 25% discount, income tax on $150K for TY2018-2019 would be $42,997 + $3,000 Medicare = $45,997.
so for current scenario, 50% discount, income tax on $100K for TY2018-2019 would be $24,497 + $2,000 Medicare = $26,497.
So $45,997 - $26,497 = $19,500 extra, which represents what % increase? $19,500/$26,497 = 73.59% increase....is this correct?
Now imagine anyone voicing such increases in other areas, such as products/services, or petrol or even interest increases...there would be a revolt!

 

That is why I call Shorten Comrade...nutin stays to same...you have change your strategy....

 

Doesn't impact my strategy as I never planned to sell, hence I ask about your strategy as your exit plan was to keep selling one or two for the next few years for about 8 years or so till retirement (I wouldn't do it, it would be detrimental for you, wouldn't you agree?).
I think though Super CG at this stage would be unaffected...?
It would impact people flipping properties for a living unless they can truly run it as a business and pay tax that way...or people who constantly like to sell shares...well any assets for that matter.

 

Out of interest, do own the properties in your own names or in trusts?

Trusts typically have a 80 year life. With the ALP’s changes to CG, a new benefit for trusts (as I see it) is that one will be able to grandfather the CG position for up to 80 years for B+H investors.

One can hand over control of one’s property portfolio owned by trusts by simply changing the directors of the trustee companies. No CGT, no Stamp Duty, ...

Downside to trusts is possible higher Land Tax, 30% income tax (if ALP gets in), ...

I am just interested in your thoughts?

 

They are also fiddling with trusts in particular...if anything happens and a compromise position is had...they may go after minimization opportunities of trusts to fund their promises.

 

Besides the two I have listed above in my post, can you share your thoughts on the downside to trusts, either already in place or maybe in the near future (say if ALP gets in)?

 

Well...one they will make it harder to distribute income to non-related/non-director parties thus reducing people who it can be distributed to.

They can also impose a minimum of taxation on distributions....should get interesting...companies structures already have a standard rate.

 

In various entities and yes higher land tax. Plus some trusts have no vesting date, did you know that, so no they will never expire even after 80 years. However it depends on who setup your trust and where.
Super is also a trust, I hold IPs there too, but laws are different there, for now....plus the older you become the more you are forced to take out.
You know at the end of the day we really have no control of what any government will do, eventually they may establish land tax on every property even PPOR, or introduce death duties, there are still many ways to skin the cat, so to say.
You are right there are still some advantages of owning in trusts, control is easily passed over, protection against litigation/bankruptcy/other....but I also like the protection of estate to bloodline.
Just realize each trust is as good as it's trust deeds, so there are trusts and trusts.
I think our SMSF trust Deed is over 100 pages long...
By the way it is vital to keep updating...especially SMSF Trust Deeds after major changes the government introduces (many are unaware of this).

 

Corelogic data is showing that Brisbane is dropping and I'm happy to return to this post in a years time when Brisbane has dropped some more