Screw Property Investors

This is what Labour proposes.... and if it comes to fruition.....ouch

Aggressive to say the least, they don't like property investors


1. Negative Gearing? Gone

2. Foreign Buying? Big fines for that

3. SMSF leverage into property? Banned

4. Vacant properties? Taxed

 

5. Promise anything so we win

6. Stay a career politician

7. No matter how much we screw up we keep the job

8. We are secure in our jobs as it is not based on performance but how much bulls*it we can spin

9. Do market research to see what policies will work best and are most popular, doesn't matter if it makes no sense at all.

10. Promise the world just to get into power! (this one repeats from point 5. but its that important that we need to repeat it.)

 

I think their policy is short sighted and targeted at non thinking herd.

Limiting negative gearing to new properties creates 2 markets. Only 7% of investors buy new properties, these properties are usually on the outskirts of a city.

If I buy a new property in one of these estates and have financial troubles, I can't sell to the 93% that prefer established properties closer in, I can't sell to the 7% because no negative gearing. I've effectively been pushed to buy a substandard property with no hope of selling.

In conjunction with their cgt changes, owners in inner to mid ring will hold their properties longer as they have no incentive to sell or downsize.

In the short to medium term, I expect this to actually drive prices up for the desirable suburbs.

How would they police a vacant property? I doubt a neighbour would report.

 

11. Limit of 1 property per investor/trust/smsf. Anyone with more has to distress sell.
12. Limit of 1 share per (same as above, too lazy to copy paste).

lol *shakes head in dismay*

 

Anything to get attention and make noise in the media

 

11. Realise there is no rental stock for people who still can't afford homes and change everything back again.

 

I think this is clear now to me.....Property Investing 101..... make sure you buy cash flow property and there are many strategies to achieve this.... but just do it....

Property investors life just got a little harder and may get quite ugly if you ignore.

I never believed that Banks would get rid of lo docs and no docs in I think 2007? but it happened over night practically, it killed many investors..

Just saying ...... planning is important, may not happen but who knows

 

I will vote the party that
1. Caps a politician's salary to double the median Australian salary
2. Changes every politician's (existing and new) retirement benefit so that it is accumulation and not defined benefit.
3. Cap travel allowance to $5k per year
4. A party that implements a policy in full, not just the random parts they like
5. A party that stops messing with the super policies.

But that probably won't happen will it.

 

me too but that would be like living in la la land

 

They are talking the talk, but when it comes to implementing it, I'd still question whether they have the conviction to carry through. Enough interest groups will weigh in, ensuring many of these things could changed or get watered down. It sounds good to the punters though and will get them some votes.

Also depends on the balance of power after an election. If its been like any of the past elections, the majority will be so slim, that making any changes may be difficult without some independent throwing their weight around.

 

The limit to two properties... wtf seriously
That's just stupid.
How is limiting people who say buy 2 properties in outer brisbane going to help Sydney's housing crisis... because that's where all this outcry is coming from.

How do they come up with this rubbish?

 

Dont forget the majority of politicians on both sides own at least one property apart from their residence

 

The landscape could be different anyway when next election is near.

I think there are no surprises here & it would look to me like they would get in possibly anyway.

 

Who knows?

I think if we start to see Sydney and Melbourne property market cool off/correct then perhaps some of these proposes will vanish.

 

Awesome......looks like they plan to hand a lot of rental increase to people like me....

 

I recently watched an interview regarding the Melb property market and a recent release of some data ( sorry cannot remember details) suggests there are 70,000 vacant properties in Melb inner suburbs.
WHat is often forgotten in these surveys is that a lot of properties belong to elderly residents that are now in care and their homes are tied up in their estates. Nothing can be done about these properties until the people pass away.
Too many of the pollies have IP s l don't think they will risk damage to their investment . BUT you just never know
Like MTR suggest "plan"

 

got to watch what these pollies do to their properties before announcing the new policy.

 

A common one is foreign owners of vacant properties not paying their council rates. So already a big list from councils.

there will also be a list of addresses that did not respond to the most recent australia wide census, these would likely be vacant as every household whether renting or owning would have responded to the compulsory census due to the threat of fines.

ATO can also do a TFN search with bank records to find out how many IPs an investor has, then cross reference with their TFN database and centerlink database for tenants with TFN addresses registered to those IPs. If there is none, likely vacant as well.

And the most updated method would be that vacant property will have very low / almost non existent water and likely power usage. Utilities usage will likely be flat with not much fluctuation quarter to quarter. Just have to get an updated list from utilities companies and review every quarter. Even recently rented properties will have sharp decline in utilities usage when the tenants move out.

If they are in need of the extra tax income, they will have a way of finding out if your property is vacant.

 

The easiest way would be to check the water usage. Even the properties that use their own water have made a declaration to that effect. I suspect they're not going to be too concerned about the rural properties that don't have a water connection.