Negative Gearing Spat: Politics Finally Gets Interesting

[Wokko]

Why the hatred for negative gearing? Why should people pay taxes on an income loss?

[David]

Because, basically, it allows people with multiple properties to escape paying their fair share of taxes, and artificially inflates housing prices � effectively keeping a large percentage of Australians out of the housing market altogether.

[David]

[Morrigu]

[David]

[pietillidie]

^Excellent article. Appallingly, one can see this highly-damaging handout sliding through another election. I just hope Shorten doesn't set its elimination back another decade, but one fears the worst.

[Wokko]

Not taxing someone isn't giving them a handout.

[David]

What's the difference between a tax concession and a handout? In many cases it's actually money paid directly to you via a government department (the ATO) at the end of the financial year. You can say "it was your money to begin with" etc., but we live in a society where people pay taxes, and if you're granted a concession you're getting +$ in your bank account that you wouldn't have otherwise had. So it's all just semantics, really.

[Wokko]

https://en.wikipedia.org/wiki/Taxation_as_theft

If someone breaks into your house, steals all your things then comes back in June and gives a household full of different items they've stolen from other people they've still robbed you.

[think positive]

Can't remember the last time we got a tax refund! As for the negative gearing one, that's incorrect. You don't get money back. You can claim for things you have paid for to maintain the property, and you claim the interest on the loan. You also claim the expenses associated with the agent fees, but you do not get it all back, the idea is to build wealth by the property increasing in value, and also yes, help in someone paying off your loan. But if it's interest only, your relying on the increase in value, and you still get only a percentage tax break. You are still out of pocket when you have a rental property. Right now my tenant is on a really good wicket, her rent is way under valued, I chose to do that because she's a good tenant, or was! However, she has started carrying on about stuff like a tree branch that fell down. So chop it up and put it in the recycling bin we pay for. Nope, you come and do it (it's not that big guys doesn't need a chain saw!). We fix everything ASAP, no complaints. But yeah, her sudden run of little things means the rent will go up next chance I get (no you can't just do it anytime, and by as much as is needed to catch it up which is about $45 a week) by 10-15 dollars. Just like my spoilt kids, I'm not letting someone take advantage of us! Maybe she will crack it and move, no biggie, I'll put the rent up $45 for the next person. I'm not emotionally attached like I was about our old house, but it would piss me off if it got damaged, just because I just don't get people living like that! It's happened before, but not like last year! We won't be buying any more rental properties, not for domestic purposes anyway, too much hassle. Factories though, where the tenant pays everything, even the rates, now that's the way to go! So yeah, the rental market, and let's face it, there will always be a need, just lost a really good landlord! (This remaining rental property has not been negatively geared for a few years, by the way!) you do realise that negatively geared just means the expenses outstrip the income yeah? is add the expenses including interest, and it all costs more than the rent comes too? It's not really free money.


Edit
Actually I just went around there, the "tree branch" is a bush in the poorly maintained garden, and there is an illegal pool in the back yard (I can see it from the driveway).

[pietillidie]

[Wokko]

You're a walking, talking logical fallacy.

[think positive]

[Wokko]

[HAL]

Oh, you are a poet.