"The Week That Was: 1-7/12, 1999"

From: Mike .

Hi Folks,

The Ralph Report seemed to be on everyone's mind this week. Statswise there were 18 posts and 5 threads.

Topics Included: Ralph Report, GST, CGT, Where to Buy?, Portfolio Structure.

Quotable Quotes:

From Gary: "just testing"

Me: I don't know what Gary thought of the test since the next appearance of a "Gary" on the forum was 7 months later.

From Les: "And thanks for your input re RALPH (another post) - I'll obviously have to start watching TV ;^) I'm getting behind the times."

Me: Spending too much time on the forum, Les. The world's passing you by.

From Ian Lumb: "Is there any other news out there?"

Me Again: Ian sounds like an inmate from Alcatraz who just got out of solitary.

From Les: "Re your questions, a number of them would either be answered in various forum entries, or on Jan's Q & A page."

Me: The first of many requests to forum newbies that they check past posts before posting their question. However, they still do it today.

From Les: "That's my 2c worth (with GST, 2.2c ;^)"

Classic Post:

Well, finally, someone other than Les has come up with a decent post. But 6 Classic Posts in a row by Les will be a record, I think, that will stand for a long, long time. My reaction to the breaking of the sequence is similar to that when I heard that Don Bradman was bowled for a duck when he only needed 4 runs to achieve a Test average of 100. Even though we're still 11 weeks away from announcing the first inductee into the Forum Hall of Fame, certainly that 6 week sequence of Classic Posts makes Les a warm favourite, in my opinion. Les, I called Ladbrokes in London (worlds biggest bookmaker) to bet that you would be the forum's first Hall of Famer but they said they don't lay odds on one horse races. However, they were prepared to give me good odds that I would be hit on the head by a meteorite. I hung up on them.

So, who stopped Les' run? Well, you'll have to open the attached file to find out. It was a late post by nearly 3 months. This person only posted for a couple of months and then vanished into cyberspace.

Paul's Question:

"The major payback from residential property investment is deferred capital gain largely funded by the tax advantages of negative gearing. If the Ralph Committee proposals go ahead, indexation will be lost, and property investors will end up paying a lot of tax on capital gain which may be barely ahead of inflation. In effect, we will be paying tax on inflation, and be worse off in real terms. While only half of this gain will be taxed at the top marginal rate (if you own the property in your own name and not that of a business or trust)we could all be substantially worse of if high inflation rates occur during the time of our property ownership. It is even worse in my case as I own property via a company and family trust structure which will pay between 30-36% CGT. With the demise of indexation, I am wondering whether Jan Somers and others will still be such strong advocates of residential property as a long term basis of wealth creation vs shares and/or commercial property trusts. Any comments?"
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