Interest rate increase vs bought breakfast

dogbox · Guru

RE: Interest rate increase vs bought breakfast

Ivan 01 · Guru

Mike Harding wrote:
Come on all you social justice warriors where's your fury with negative gearing? Or do most of you have a rental or two as well? No surprise there....

I dont have nor have ever had a second house or property but I note your concern.

The mum and dad investor arent as much the problem as those from overseas who come to Aus, buy streets of houses and use our tax system to their own advantage.

Just go to an auction in Sydney or Melbourne and note who the successful bidders are.

dogbox · Guru

Ivan 01 wrote:

Mike Harding wrote:
Come on all you social justice warriors where's your fury with negative gearing? Or do most of you have a rental or two as well? No surprise there....
I dont have nor have ever had a second house or property but I note your concern.
The mum and dad investor arent as much the problem as those from overseas who come to Aus, buy streets of houses and use our tax system to their own advantage.
Just go to an auction in Sydney or Melbourne and note who the successful bidders are.

there was a news story about how some foreign investors were buying properties in Sydney and Melbourne an just leaving them vacant .
how many countries can foreigners, buy/own properties in other countries
if we took foreign investors out of the picture in Australia what would happen?
do we have a foreign investor tax in Australia not sure if i heard we had one or talk of one?

Bobdown · Guru

My Accountant told me to do 3 things when I had a few years of really good income.

Start a Trust, so I could distribute some income to the Missus or kids.
Put extra into Super.
Negative Gear some Property.

So we purchased some land and had a house built on it, which we rented out for 9 years and then sold it when I retired.

We claimed the difference between Rent and Mortgage as a tax deduction as with any expenditure such as Rates, Water and Insurance and maintenance.

We paid Stamp Duty and CGT (50%) on it when we sold it, split 2 ways.

All in all, most of the profit was in Capital growth, although it did reduce PAYG marginally. I would recommend it again, if you had a high income.

As the great Kerry Packer said, you are not avoiding Tax, only minimising it.......and he didn't want to pay them 1 cent more than necessary, as the Government weren't very good at handling money. smile smile smile

PS. Good Accountants cost a whack of money too.