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Negative gearing here to stay, believes expert

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Your Investment Property | 11 Jun 2015, 08:25 AM Agree 0
Current talk about the future of negative gearing is unlikely to result in any changes to the system according to one investment expert
  • Russell Murphy | 12 Jun 2015, 08:31 AM Agree 0
    We need different rules for on & offshore investors. However, housing affordability wont be fixed by axing negative gearing which, at current interest rates, is largely irrelevant for even the most heroically geared investment property. The more sustainable remedy is to align taxation treatment of homes with the tax treatment of any other investment. It's how UK & US homes are treated & where punters evaluate their investment in a home more dispassionately & just the same as they'd evaluate an investment in a share or cash at the bank.
    Its will be a tough debate but now's the time to have it.
  • julieo | 12 Jun 2015, 09:54 AM Agree 0
    I think the point that is missing from most of the discussion around negative gearing is the fact that most of deduction is in the form of depreciation which is added back when the property is sold and tax is paid at this point in the form of CGT.
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