negative gearing benefits cancelled?

[mimimao]

Good morning all,

Has anyone heard anything about the govt thinking about cancelling the negative gearing benefits in property?

met a friend's friend who mentioned this and scared the hell out of me

thanks!!

 

[Ed Barton]

Good morning all,

Has anyone heard anything about the govt thinking about cancelling the negative gearing benefits in property?

met a friend's friend who mentioned this and scared the hell out of me

thanks!!

get's mentioned all the time. won't happen.

 

[Propertunity]

get's mentioned all the time. won't happen.

Yep, gets mentioned all the time (do a search on "negative gearing" in here). Probably won't happen. If it does happen, probably won't make much difference. meh.

 

[mimimao]

Thanks heaps!

Propertunity, why won't it make much difference? I guess there will be people relying a lot on the NG benefits to get their tax money back. If NG's gone they would probably be forced to sell. is that right?

 

[Propertunity]

Thanks heaps!

Propertunity, why won't it make much difference? I guess there will be people relying a lot on the NG benefits to get their tax money back. If NG's gone they would probably be forced to sell. is that right?

This has been discussed ad-naseum - see previous threads. But in summary:
70% of the property market is OO - who cannot claim NG benefits
30% investors - many of whom are not neg gearing, some who are.
The number who are NG are not a significant % of the whole market to make much difference either way.
If they remove NG, rents will just go up to make up the difference. The end-user (tenant in this case) always pays.....just like they do with IR rises, rates rises, water bills, land tax etc - it just gets passed on down the line.

Tax benefits, IMO, are the icing on the cake, not the cake itself.