negative gearing

I believe both howard and costello have discredited the productivities commissions findings in this regard.
I also believe it is interesting to see the same of what we have seen before.
I feel it is the makings of the cycles that offer the opportunity to create wealth, that being the case, the cycle is set and their is little the average investor can do to influence it, and in return will achieve nothing than modest returns. But influenced it will be.
A Labour government may well be elected, for the ‘non reason’ of we need a change if nothing else.
We are already seeing Latham suggesting abolishment of neg gearing, stamp duty changes. State Labour govs have already starting penalising those saving for there retirement and attempting build wealth, OBVIOUSLY A BAD THING in their eyes.
Abolishment of neg gearing in Keatings treasury days say rents go through the roof, this is good in the eyes of those seeking returns on investments, however when recindered, rents didn’t drop dramatically.
I guess its time for another twist in the cycle, and I’m always good for the idea that the bigger players will always control the game and we can ride along with them.
If you own less than substantial amounts of property and feel you have a handle on the market think again.
The cycles in property, as in other asset classes exist for a reason, to make a minority very wealthy, not so an insignificant few can feel the can break from their mortal coils and roam with the truly wealthy.
sponge

Hmmmmmm…

I guess it all depends on how lawmakers see the problem. If the problem is that too many people can’t afford the price of a roof over their heads, then increasing the GST rate looks like a very doubtful solution at best.

Did anyone predict the NSW tax on profits from sale of property? It seems to have come as a complete surprise, which might be a warning that trying to guess what governments will do is tricky unless they start leaking, and even then it’s hard to tell whether they’re softening us up or testing reactions.

I’m not an economist either. I’m just trying to decide how to estimate capital gain in deciding whether or not to buy. Right now we have no debt and money in the bank on 5.25%. The cash is for renovations to our PPOR; we won’t borrow for them. But I’m finding it hard to justify borrowing for another property purchase, even cash flow positive, when I think current values are unsustainable and the rules that affect future values are under active review.

Just risk averse I suppose. Maybe I’ll go get a margin loan and buy some biotech stocks [tongue]

Ghoti

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Without music, life would be a mistake.

Hi All,

I am a little like Ibuycashflow – at the moment I am busily pursuing +cf properties. My aim is to balance my portfolio and create enough cashflow in to pay for PPOR repayments and -ve geared property in Brisbane. I am at that point now with only three careful cf+ purchases. I am so thoroughly enjoying the unlimited opportunities that I will continue to chase +cf, but at the same time, now that things are quietening here in Brisvegas, I will be looking in my own backyard to see what’s going on – and that will be -ve geared property at this stage.
Cheers
CD

CastleDreamer