Cost of owning a rental property!!!

For me, it is simple.

The Government makes the rules and I abide by them.

If the Government changes the rules, I just change my game plan.

And my game plan is to maximise my Net Worth, to live the lifestyle I want/desire and to minimise the total amount of tax I have to pay.

I don't get too hung up on the rules Governments make (until it is time for another election). I educate myself on the rules and then formulate my game plan, taking these rules into account.

Yep, I have used NG, hybrid trusts, discretionary trusts, SMSFs, etc.

Did these help me minimise my tax? You betcha!!!

Did these help me increase my Net Worth?
You betcha!!!

Did these help you become financially independent so that you can live the lifestyle you desire and that you are NOT a burden on Australia in your retirement?
You betcha!!!

Do you feel you have ripped off the Australian people in using these strategies, structures and facilities?
Hell no!!!

These are my feelings and others can/may have different feelings. I am fine with that.

 

@Skilled_Migrant in response to your earlier post about holding property in a company instead if it's positively geared, that doesn't usually make sense financially as you won't get the 50% CGT discount upon sale

 

I am quite happy to be philanthropic but only to registered charities.

The Federal Government, none of the State Government nor none of our Local Governments are on that list.

Hence, I am not going to give them any more money than I have too.

 

Especislly when i see useless incompetent politicans get paid stupid amounts of money to do nothing while getting a ridiculous pension for life while all we see on tv is how they do travel rorts and need a helicopters to attend dinners

 

I know and that's exactly what I had said:

The NG and CGT have created a hybrid of personal and business incomes and activities. The incentives are so overwhelming, that the business activity is not being classified as such. In addition as you have mentioned on a number of occasions, it is taking away the valuable resources which would flow into broader economy through pure (I was going to use the word legitimate but refrained expecting howls of protests) business activity which is always incentivized in comparison to personal PAYG activities .

I would prefer to move on from analysis of current NG and CGT because it is getting saturated, personalized and stratified now. Hopefully we can engage in the next stage of conversation to analyze the impact of proposed labor policy, and macro-economic changes with regard to APRA, reduced foreign activity:

• Appropriate holding structures: Pendulum will swing to companies from individual and trusts ?
  
• Winners : Most likely SMSF, NRAS, lawyers, accountants Federal Govt, builders, renters IMHO ?
  
• Losers : State governments, Eco-system of brokers, PMs, accountants, BAs, REAs, conveyencers, insurers, banks etc who rely predominantly on supporting property investment and get their feedback ?
  
• Unexpected consequences of policy change: Plausible emergence of a commercial entity with advantages of scale in residential market as against traditional OO and individual investors ?
  
• Historic comparisons of such policy changes.
• Expected property investment behavior changes, property prices, yields as well as preferred locations for property investing.
• Anything else others think is likely.

 

@Caltan you would think that investors want to pay the lowest tax rate possible within the law wouldn't you... apparently some are fighting to pay more tax...nothing amazes me anymore these days mate. Nothing.