We made around $80-100K in C.G. in the last 12 months, $50K of that on IP2 bought in dec 2008. If i had've let fear of the potential of some tax stop me from buying, i would forgone the opportunity to benefit from that capital growth.
I have to remind myself regularly that our properties this year made more money than i made in salary.
Why would you give that up because you are scared of a tax review that might cost you a few grand at most? As as others have said already - this is a complete tax REVIEW; looking at ways to simplify the tax system.... which means doing things like eliminating 4 taxes and replacing them with a simpler, single, universal tax.
Besides - it would take YEARS for the govt to change the tax system based on this review, which isnt even completed yet! So you have several years to make money on property and then when/IF the tax review goes through, decide if PI is still going to work for you.
If it wont - sell up, and reap the profits. Where's the harm in that?
However, if you sit paralysed by fear of this tax review, you will make ZERO money in that time frame. You lose in that situation.
I find many of your comments here quite amusing considering recent examples in the last 10 years. Let's break it down:
1. We made around $80-100K in C.G. in the last 12 months, $50K of that on IP2 bought in dec 2008. If i had've let fear of the potential of some tax stop me from buying, i would forgone the opportunity to benefit from that capital growth.
Well congratulations. You have bought well and have earned the rewards. Just because your property went up does not mean that is the same for everyone.
2. Why would you give that up because you are scared of a tax review that might cost you a few grand at most?
Really? Just a few grand? Have you seen the kind of taxes the Americans pay under the same scheme proposed? Although it may even start out as a few grand, the government will always increase these rates.
3. As as others have said already - this is a complete tax REVIEW; looking at ways to simplify the tax system.... which means doing things like eliminating 4 taxes and replacing them with a simpler, single, universal tax.
Ahuh. Just like the GST was suppose to eliminate many of the state taxes. Has it? NO!
4. Besides - it would take YEARS for the govt to change the tax system based on this review, which isnt even completed yet!
Really? Since when do governments stall on imposing new taxes? Sure it may take a year from the announcement...but YEARS???? Yeah right.
5. However, if you sit paralysed by fear of this tax review, you will make ZERO money in that time frame. You lose in that situation.
Paralyzed with fear? Wow you don't like to exaggerate do you? Cautiousness is not fear...there is a difference. I liken it to chess, see which pawn is moved so I can counter move...or do I move my queen into position oblivious to all others that still sit on the board?