In light of recent media reports regarding potential policy changes to Negative Gearing and Capital Gains Tax (CGT), what is the practical perspective within the OzB community?
Should government reassess property investment and the claims associated with it?
Removing NG means less transactions on Houses. This means less revenue (stamp duty ) to state government.
Poll is favourable to almost 900 who are saying no but interestingly almost 500 are somewhat in favour of keeping it.
The term negative gearing only means claiming the cost of interest against your income. This is because you are literally making a loss. The strategy depends on capital gains in the longer run to be profitable, and although it has been a great time for property growth, it doesn't always happen and can't go up forever. For example at the end of the 80's when everything halved and many were wiped out and sold up. It's a risk.
You can see here how many will vote to take from those who they perceive as being wealthy, many of who aren't that wealthy and work hard and take risks to be productive. Keep it up and it becomes death by 1000 cuts into a more Socialist system. Then the productive will no longer bother and before you know it you'll see parallels with Venezuela, which not that long ago was a very prosperous country, until similar things occurred, the Socialists took over and now it's a total disaster.
If they stopped giving money to single parents that have kids out of marriage, or are divorced., there would be a lot less demand for houses.
Read this link https://www.thenewdaily.com.au/news/politics/australian-poli…
In general only rich benefit from it and hence Labour govt reluctant to remove negative gearing. Politicians also own a few houses using this.
Just going to pop this little link here for all the people screaming down NG without a clue…