pommie bastard

Not before time why should the few support the greedy , but on a happy note there is a lot of empty rentals and the advice in WA right now is you can barter down rents because landlords are finding it hard to let.


IF YOU'RE one of the 1.3 million Australian taxpayers who owns an investment property, then your chances of being tapped on the shoulder by your friendly tax officer just went up.

The Australian Taxation Office has warned that this year it will be taking a much closer look at your rental income deductions, which totalled $13.1 billion in the past 12 months.

Over that same period, those 1.3 million taxpayers have returned rental income of $12.4 billion from their properties - meaning deductions have overtaken income to the tune of $700,000.

Kiwipaul

Well for your information if deductions weren't greater than income I'd be very surprised. The thing you don't realise is that depreciations that you claim are quite often greater than the mortagage payments, and so you don't understand the system to best advantage if you ever pay tax on the rental income.

Go back to your pokies PB.

pommie bastard

You are so un-informed its untrue have you heard of positive gearing?
By the way the information is from the tax office , do all failed goverment workers have such a limited life?

Kiwipaul

Sure a positive geared house is fine, but unless you depreciate as well the positve part of the income is taxed at your highest rate, depreciate and positive income is effectively tax free. People who don't use depreciation are missing out on the greatest advantage of houses overs stocks and bonds.

pommie bastard

Franked stocks out perform all rentals on tax advantages , no tentant to reck the value of your investment or maintance costs .
The mad rush into homes will result in an over supply of homes and a down turn.

Kiwipaul

On a $200,000 house you should be able to claim $10,000 depreciation per year. I doubt that you would get $10,000 franked div on $200,000 of stock, plus banks would demand a higher deposit and higher interest rates to enable you to buy $200,000 of stock.

Stocks and shares can crash as eaisily as houses or haven't you been watching the stock market over the last 3 years.

Both have their advantages one is not best, a balanced portfolio is required to cover all eventualities.

pommie bastard

We both know over the last 20 years stocks leave homes behind , rentals can be empty for months so no income only costs.
Borrow on Mortgage for Stocks no differance on rate , you are correct all eggs in one basket is not good so bugger buying more than one home.

The Tooth Fairy

This is the way the big boom ends

pommie bastard

The banks draw in mugs then eat the remains , no easy get rich quick at the taxmans pleasure is what it seems.

Quote from your link.

I can feel another round of terrible publicity for the banks coming on.

And if all the media angst were to put the frighteners on a lot of owner-occupiers with big mortgages, the Howard Government's reputation as incomparable economic managers might be looking pretty tarnished.

If so, it would have only itself to blame. Why? Because it left open the negative-gearing loophole on which this whole rocky edifice has been built. And then it compounded its failure by halving the tax on capital gains. I call that asking for a property boom.

Kiwipaul

Yes I agree but that article specifically targets inner city appartments, and I've seen no one on this site advocating buying inner city appartments.

Houses are a good investment, inner city rental appartments which are over priced and over sold are not.

The Tooth Fairy

The connection is that some "investors" have mortgaged their home equity as deposits on inner city flats. A down turn in the price of flats could cause a down turn in suburban house prices. It could be appalling.

pommie bastard

Look in the WA papers on a weekend the rentals are crying out for renters , the Radio was giving out advice to renters to drive a bargin as they are now in the driving seat.

pommie bastard

Try your bank manager he will throw cash at you to buy an investment home or do it over the net , go for the jackpot and see if what you can lend is repayable without rent coming in.
Ask yourself what if my investment is empty for 3 months of the year or more plus you get a problem tenant who recks the house and leaves owing a few bob.

Kiwipaul

The number of years that the price of houses has fallen is trivial compared to the number of years the price of houses has risen, and no I don't have alink to prove it.

The main people affected by this are the speculators, not the average person comming out here to live.

The Tooth Fairy

If they do not mind losing on their houses then it is not a bother. Neither you nor I can say houses will be worth more or less at any time in the future. It may be more cost effective to rent but who can tell.