Im a little bewildered with all these concerns about the proposed labour policies of getting rid of negative gearing and getting rid of the tax concessions with capital gains tax after 1 year in order to make housing more affordable for first home buyers. When I started purchasing properties over 25 years ago I had attended all these seminars about how good negative gearing was . After purchasing 2 properties the bank was no longer willing to lend me any more money as I was losing too much on these properties, so much for Negative Gearing strategy for me. I now try too purchase properties that are either positively geared or neutrally geared. My strategy has changed I have done a few subdivisions, flipped a property and renovated and added value. Don't get me wrong I have enjoyed the negative gearing aspect of my properties at tax time with a nice return but it's not the be all and end all. APRA has certainly stopped me in my tracks with the new lending criteria. If labour gets in and properties do reduce in price do they think that they won't be competing with investors. Experienced investors will always find a way to make money from property. I love property, I don't like the volitility of the share market, superannuation isn't that attractive as Governments keep changing the rules and I don't really want to retire at 70. My question to all you out there are you concerned if labour gets in will this change your approach to property investing? Will you sell up? Keep buying? Or sit tight? Cheers Martin
Zero concern they'll gain power. Zero concern if they did, they'd touch NG. They're just pandering to voters IMO. If any changes did happen, I don't imagine I'd have any reason to sell. If my tenants continue to pay rent, everyone's happy. Looking forward, I will continue buying if the numbers make sense.
Hi Martin. When are you moving back to Queensland? No, we really don't care too much about negative gearing per se. We might get our feathers ruffled if our portfolios devalue due to the values of all housing dropping. Thankfully no two economists can agree on what will happen next week, let alone next year, so we just keep on keeping on and will deal with whatever is thrown our way. Have a nice day and keep dreaming about nice life will be after the day job is lo longer the No One priority in your life.
