Post to Facebook on 12/5/2018 at 9:14 AM
Commenting on “How much Victorian landlords negatively gear and what they claim on tax”
https://www.domain.com.au/news/how-much-victorian-landlords-negatively-gear-and-what-they-claim-on-tax-20180511-h0zxn9/
Personally I prefer to make a profit from my investment property and pay tax, than to make a loss to offset other profits to reduce tax.
A loss from an investment say up to 5 years over the life of 25 years of an investment is considered my worst case limit, or 20% of its life; otherwise, I have to reassess my option to cut my losses or switch to more profitable investments.
Many people talk about life is too short, or they don’t have any idea what can happen to them in the next minute or so, and therefore they tend to make short term pessimistic investment decision.
Property investment is meant to be for long term, and therefore those who make statements like the previous paragraphs should forget about such investment option.
How long can an investor afford to rely on negative gearing throughout the life of the investment? Can the eventual sale attracts a capital gain that is greater than the opportunity loss?
Negative gearing is an incentive for investors. The benefit is one of the hot debate policy during budget time. In fact, Labor intends to abolish it should the party win the next election. The removal of negative gearing will further reduce the housing demand by investors, and deteriorate the construction industry and all other industries that rely on on the same.
If negative gearing is removed, many property investors with large mortgage debt will be in financial dilemma, thus forcing them to let go of the properties. However, that does not translate to more affordable housing in the market.
For property investors who want to hang on to their investment, they will have no choice but to increase the rent to cover the lost ground. This has a negative impact on affordable rental market.
Removal of negative gearing is a bad move. It does not concern me, becausea none of my investment property is negative,y geared.
By the way, I am very income poor!
Thank you for reading.
Commenting on “How much Victorian landlords negatively gear and what they claim on tax”
https://www.domain.com.au/news/how-much-victorian-landlords-negatively-gear-and-what-they-claim-on-tax-20180511-h0zxn9/
Personally I prefer to make a profit from my investment property and pay tax, than to make a loss to offset other profits to reduce tax.
A loss from an investment say up to 5 years over the life of 25 years of an investment is considered my worst case limit, or 20% of its life; otherwise, I have to reassess my option to cut my losses or switch to more profitable investments.
Many people talk about life is too short, or they don’t have any idea what can happen to them in the next minute or so, and therefore they tend to make short term pessimistic investment decision.
Property investment is meant to be for long term, and therefore those who make statements like the previous paragraphs should forget about such investment option.
How long can an investor afford to rely on negative gearing throughout the life of the investment? Can the eventual sale attracts a capital gain that is greater than the opportunity loss?
Negative gearing is an incentive for investors. The benefit is one of the hot debate policy during budget time. In fact, Labor intends to abolish it should the party win the next election. The removal of negative gearing will further reduce the housing demand by investors, and deteriorate the construction industry and all other industries that rely on on the same.
If negative gearing is removed, many property investors with large mortgage debt will be in financial dilemma, thus forcing them to let go of the properties. However, that does not translate to more affordable housing in the market.
For property investors who want to hang on to their investment, they will have no choice but to increase the rent to cover the lost ground. This has a negative impact on affordable rental market.
Removal of negative gearing is a bad move. It does not concern me, becausea none of my investment property is negative,y geared.
By the way, I am very income poor!
Thank you for reading.
