Annual Negative Gearing Loss/Gross Property Value %...Poll!

[JIT]

Annual Negative Gearing Loss/Current Gross Property Value %...Poll!

Hi everyone,

Just curious again...and following on from the topic of another recent thread.

For those who are currently negatively gearing into residential property...

What is your annual pre-tax negative gearing shortfall (ie. annual interest only repayments on loans minus annual gross rents...) divided by your current estimated gross property asset value (excluding loan amounts), expressed as a % (multiply the result by 100)?

ADD: Also, I would exclude your PPOR in your calculations of current gross property value as it's (usually) not being negatively geared (not earning you any rent)...thanks (any thoughts on this?).

For simplicity, ignore other property expenses and tax benefits please.

Eg. annual loss of 20k pa on a portfolio worth 1.5MM is...1.33% pa.

Thanks.

 

[Rixter]

JIT, as per your methodology -

Currently 0.06%.

 

[WallyB]

JIT

I'm around 2.6% currently

For any of the pollsters in the bottom (top) category >20%- I'd be interested in your numbers as I can't see a likely scenario in current Oz market where you'd have those sort of figures

 

[JIT]

I'm at 1.8% at present.

 

[Patosan]

Aren't you interested in ALL those who run a loss, rather than only those who negatively gear ?
Since there are a good number of discretionary trusts operated by forum members ... not neg geared but running a loss.

 

[JIT]

Aren't you interested in ALL those who run a loss, rather than only those who negatively gear ?
Since there are a good number of discretionary trusts operated by forum members ... not neg geared but running a loss.

Sure, I guess so.

 

[alexlee]

Aren't you interested in ALL those who run a loss, rather than only those who negatively gear ?
Since there are a good number of discretionary trusts operated by forum members ... not neg geared but running a loss.

How would you run up a loss with investments without gearing?
Alex

 

[asdf]

How would you run up a loss with investments without gearing?
Alex

Not SMSFs, standard family trusts I would imagine.

 

[alexlee]

Not SMSFs, standard family trusts I would imagine.

How would you run a loss in a family trust without gearing? Unless you're losing money trading or something?
Alex

 

[NOT 2 L8]

Currely 1.58%

 

[JIT]

How would you run up a loss with investments without gearing?
Alex

I think he means you can't negative gear in a DT, so you're losing money but it's not tax deductible...?

 

[JIT]

Also, exclude your PPOR in your calculations of current gross property value as it's (usually) not being negatively geared (not earning you any rent)...thanks.

 

[triton07]

Currently at 1.7% but this will change at 2.0% with next IP.

 

[GoAnna!]

Aren't you interested in ALL those who run a loss, rather than only those who negatively gear ?
Since there are a good number of discretionary trusts operated by forum members ... not neg geared but running a loss.

Hi Patosan

Took me a moment but I think I now understand where you are coming from.

Maybe it comes down to your definition of "negatively geared". In my books gearing is borrowing and negative means that it is running at a loss. Whether that loss can be offset against other tax paid in another thing again.

So from my perspective trusts can be negative geared.

 

[alexlee]

I agree with GoAnna. I define negatively geared as having a net tax loss.
Alex

 

[JIT]

For any of the pollsters in the bottom (top) category >20%- I'd be interested in your numbers as I can't see a likely scenario in current Oz market where you'd have those sort of figures

Maybe not that high. But some here who are capitalising interest on property investment loans when property prices in some parts maybe stagnating or falling could score higher %'s.

 

[steveadl]

Just to annoy you JIT, I'm including my PPOR as I believe it's valid. It's a development site, but we're living in it. I don't count the entire cost though, I just add in the extra it costs me as opposed to if we were renting a place somewhere else.

Not sure why you made the poll pre-tax though, as we are talking about 'negative gearing'? According to your poll definition, I'm running at 4%, but I've never really taken notice of that figure as it's meaningless in my view. Why exclude tax benefits etc. when that's the reality?

Post tax, it's around 1.1% now, and if I pull off my current deal it'll increase to 2%. These figures however include all associated property costs.

 

[Harris]

ouch ! someone at 7% ..? cant be unless it is vacant land someone is holding.

 

[buzzlightyear]

Hi everyone,

Just curious again...and following on from the topic of another recent thread.

For those who are currently negatively gearing into residential property...

What is your annual pre-tax negative gearing shortfall (ie. annual interest only repayments on loans minus annual gross rents...) divided by your current estimated gross property asset value (excluding loan amounts), expressed as a % (multiply the result by 100)?

ADD: Also, I would exclude your PPOR in your calculations of current gross property value as it's (usually) not being negatively geared (not earning you any rent)...thanks (any thoughts on this?).

For simplicity, ignore other property expenses and tax benefits please.

Eg. annual loss of 20k pa on a portfolio worth 1.5MM is...1.33% pa.

Thanks.

JIT, maybe I am bit slow. What does this actually measure or indicate?

 

[stumunro]

i cant find a really valid explanation as to what it indicates. Perhaps how long people have held their propertys, but the percentage is going to be skewed depending on the gearing and the growth achieved.

i guess the percentage indicates where everyone is sitting in terms of equity and cash flow but means nothing as peoples individual circumstances will tell more of a tale.

please explain JIT