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What will you do when/if negative gearing goes?

Discussion in 'General Property Chat' started by propernewb, 13th May, 2016.

  1. propernewb

    propernewb Well-Known Member

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    Interested to hear what investors will do once/if this policy goes?
     
  2. euro73

    euro73 Well-Known Member Business Member

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    All existing arrangements will be grandfathered. So it wont affect any existing properties that you already own. It will only affect purchases made after July 1,2017 - and even then it would only be removed from purchases that arent new dwellings...

    So, if you want to continue to avail yourself of neg gearing on any purchases made after July 1, 2017 - buy new stock.

    And of course... Shorten has to get in first, before any of this even becomes a possibility...

    On a personal note - I will continue to minimise a 200K taxable income to below the 18.2K tax free threshold - ie to $0 , and then take the @ 130K + of additional tax free dollars from the dozen + NRAS credits on top of that, for the next decade or so... :)
     
    Last edited: 13th May, 2016
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  3. wylie

    wylie Moderator Staff Member

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    I wouldn't change a thing I'm doing now.
     
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  4. Ran Gus

    Ran Gus Well-Known Member

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    Continue investing in property.

    The numbers might be different when considering what to purchase, but that's about it.
     
  5. HUGH72

    HUGH72 Well-Known Member

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    Nothing, other than curse Labor.
    I might consider building a small townhouse development on a site we own but I wouldn't sell anything.
     
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  6. House

    House Well-Known Member Premium Member

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    Complain that property is even more unaffordable :p
     
  7. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    Yawn, and get on with life. :)
     
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  8. Perthguy

    Perthguy Well-Known Member

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    I will keep investing in property. Since abolishing NG is going to cause the property market to collapse, I will buy even more ;)

    But really, I don't like making a loss on my investments, so I will continue to work towards building a portfolio of cashflow positive (income generating) investment properties. Later I want to add cashflow positive listed securities to my portfolio. I am optomistic about my strategy whether NG is abolished, restricted or retained.
     
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  9. turk

    turk Well-Known Member

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    Probably not much different.

    As I understand the proposed changes I can still buy NG property and offset the loss against income other than wages(dividends).
     
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  10. RiMo

    RiMo Well-Known Member

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    Watch my bank balance grow from our CF+ properties (all of them are) and continue doing the same formula: Buy. Hoard. Repeat.
     
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  11. Tony3008

    Tony3008 Well-Known Member

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    Given that Labor's policy is going to "drive up rents" (MT), then that's good for me .. and for my property managers. But the reality is that it would probably be as life changing as the abolition of carbon tax, i.e. hardly noticeable.
     
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  12. WattleIdo

    WattleIdo renovating Premium Member

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    Why they put in Shorten instead of Albanese I will never know. I'd say a lot of usual Labor voters will be voting Green (again) or Liberal for the first time. I don't see any Labor values there at all. I'm not that worried about NG as would like to live off rents but it's the principle of pandering to a bunch of spoilt brats and the parents who brought them up that has turned me.
    It'll be a landslide Liberal win with some strong Green seats, I'd say.
     
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  13. EN710

    EN710 Well-Known Member

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    No change? Positive cashflow is always a preference so I will be doing what I am doing now, turning each investment to cashflow positive as soon as possible.
     
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  14. Francesco

    Francesco Well-Known Member

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    If what you say is true, then there is no impact on any investor who is self-employed or retired because they have no wages. This will be true even if there is no grandfathering. On the other hand, what is there not to like about rent being pushed up for us landlords as even reports made a few years ago have cottoned on!

    If this is the case, there is no downside for me at all. All up, no downs, but pity the renters and those misguided FHBs expecting passive landlords to sell down!
     
  15. turk

    turk Well-Known Member

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    Yes, as long as you have investment income to offset against

    From 1 July 2017 losses from new investments in shares and existing properties can still be used to offset investment income tax liabilities. These losses can also continue to be carried forward to offset the final capital gain on the investment.

    Positive plan to help housing affordability

    Another consideration investors looking for no or minimal NGing will be pushed into the new house or low end, high yield property market putting price pressure onto these markets.
    This wont help FHBers.
    Another rushed poorly thought out policy.
     
  16. dabbler

    dabbler Well-Known Member

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    Cry like a girl in the corner, along with the sobs of how expensive things are getting for all of us and how it is so unfair, thank god your mate Billy is looking out for us and will re balance things.
     
  17. Francesco

    Francesco Well-Known Member

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    It seems clear that those who have large sums of investment income can still use NG with no impact, ie the very rich. LOL if they intend to catch the rich. However, they may slug those who have a self-funded pension as it is not investment income. So, self funded pensioners are slugged to make Australia more egalitarian. It seems like pulling someone down from being self-funded so that he will have to access more Aged Pension!
     
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  18. sash

    sash Well-Known Member

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    Buy up Big if Labor gets in.....watch rents sky rocket....and then the policy change...massive boom ......retire on profits. ;)
     
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  19. turk

    turk Well-Known Member

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    Yep, Labor will belt the Mum and Pop investor along with FHB and the battler buying the low end of the market.

    It will be a flea bite at worst for the rich.
     
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  20. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Negative gearing abolishment will get hyped and ramped and championed by the haters of the evil property specufestors. Until they realise the same will apply to shares etc then they will drop it
     
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