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Lobby groups join forces against "unfair" negative gearing

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Your Investment Property | 03 Jun 2016, 03:30 AM Agree 0
The interests of investors are being put before those of "ordinary people" according to lobby groups supporting changes to the tax policy for Australian real estate
  • Debbie | 03 Jun 2016, 10:22 AM Agree 0
    We are not big investors but took a risk and bought an investment property to try and generate income for our older years. This was bought using the money in our own home ( 20 years hard work) as security. The first year nearly broke us financially and is not as easy as it seems. The investment is now worth $50,000 less than we paid for it, the rent almost $320 less per month and if we had to cover the shire rates, water rates, insurance, management fees, repairs etc etc we would be financially bankrupt because we would have to sell everything and start again. The government has encouraged this and yet it's the working class suffering AGAIN. The housing market would go bust if negative gearing was abolished because it's what the market is built on. The market would be flooded and yes it would bring prices down but spending power of hundreds of thousands of people would reduce dramatically. The building of new houses would cease as demand reduced, rendering plumbers, brickies, joiners, gardiners, home sellers, designers and many others jobless. This would then have a knock on effect reducing the need for heavy machine operators, truck drivers, building supplies etc etc. it would be a catastrophe to the economy and thousands of hard working Australians who took a chance.
  • Bill | 03 Jun 2016, 03:24 PM Agree 0
    What a fantastic idea! If they abolish that, I'll be able to charge more in rent! Great for me! Rents will skyrocket, as investors charge more to make up their losses! Not so good for low income earners though... wonder why this lobby group hates them so much?
    • Daniel | 03 Jun 2016, 07:16 PM Agree 0
      Bill thats rubbish. Instead, us renters will finally be able to buy our own homes and wont need to keep paying blood sucking landlords like you.
    • Bill | 06 Jun 2016, 06:15 PM Agree 0
      Yup, you can pay the blood sucking banks instead, like I do. Are you saying rents won't go up? I was being satirical before; I think it's awful that some politicians want to do this to renters.
  • Cmac | 03 Jun 2016, 04:39 PM Agree 0
    Not sure this is a valid argument, people saying wealthy people are getting a subsidy when they are the exact people who subsidise the whole tax system (top 10% of tax payers pay over 60% of the entire tax revenue) we might want to always take from the wealthy but if it were not for them we would all be paying alot more tax. I think goverment should just play with the numbers eg reduce the CGT benefit and only allow investors to be able to claim up 37c in the dollar not the 47c the very wealthy investors can (a small portion) This would mean the average income person can still invest in property and rents should not be driven up.
  • Craig Mc | 03 Jun 2016, 06:30 PM Agree 0
    Really do not think that getting rid of neg hearing will help first home buyers. More tall poppy syndrome if you ask me, investors being made to feel bad about govt subsidising investment properties for the rich, interesting since these people more than likely subsidise the tax system as a whole. Our too 10% of tax payers pay over 60% of all income tax, so if it were not for them we would all pay lots more tax. Also stopping neg gearing will stop average middle income earners from being able to invest in there future too not just the wealthy. I think the answer is somewhere in the middle perhaps remove or reduce the CGT benefit and only allow the wealthy to claim 37c on dollar not the 47c some of the wealthy can now. I am property investor and should not feel guilty about investing in my country or my families future. Also property is usually on neg geared for around 5 years, then the govt collects tax on it anyway. All comes around!
  • Fenny | 03 Jun 2016, 11:09 PM Agree 0
    I don't know what this campaign is on about. Most of the property investors are indeed ordinary working class people. For better retirement life, with determination to scarify spare money for leisure, courage to take risk, they plan their future ahead to get into the property market hoping one day they can financially support themselves and do not need to live on the pensions -less burden to the government. I know quite a lot of property investors don't mind getting their hands dirty, they work on property for repairs ect on the weekend. They still pay tax as they work and because of all the property holding expenses, their net out of pocket money is actually less than those have the same salary without investment property. In addition to the usual council/water rate etc, they pay land tax that is used to pay services heath, education and law & order.

    They negative gearing policy is opened to all working class people as long as you earn money or pay tax. It is FAIR! I truly believe most of these people can afford to buy own owner occupied house or investment property at a certain stage if they are willing to scarifying their life style, accepting some financial pressure, & taking risk . They have a CHOICE! When you have a choice, you can't say it is unfair!

    Furthermore, when the investors sell the property at one stage, they pay capital gain if there are any, this is another tax. These investors will not rely on the government pension (at least that is what they are aiming at). These people are the one pay more, take less. So why is it called unfair?
  • Graham | 07 Jun 2016, 12:58 AM Agree 0
    Housing is affordable in Australia FHBs are proving it every day. Maybe not in Sydney & Melbourne at the moment but certainly in other cities. Most FHBs parents bought 3bed 1bath single carport houses Some FHBs want more than their parents started with. Maybe start with an unloved house, do some work on weekends (like your parents did) spruce up the gardens with free plants from friends & Rellies, Do some painting & then either live there, proud of what you have achieved or sell it, move on & do it again. Just saying.
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