Negative gearing reduced to schoolboy debating
“Negative gearing reduced to schoolboy debating” states one of our most respected papers today. It was also said that the only thing worse for a government than houses becoming more expensive is houses becoming cheaper…. so Mr Turnbull has now set one of the big issues for the coming election on negative gearing. Rather than keep repeating what negative gearing is all about, take a quick lesson from our FAQ page click here (8th question down on the list): http://propertyinvest.co/property-investment-frequently-asked-questions-faqs-information/
This is the 4th blog we’ve written on negative gearing in the last couple of months simply because it’s such a hot topic! I do think this is the best headline we’ve seen yet; a headline that really captures what all the fuss is about – lots of shouting, lots of claims and counter claims, big assertions and at the end of the day ‘schoolboy debating’ with a confusing outcome.
The Prime Minister says no change to negative gearing or capital gains tax
So let’s just try and summarise again what the two sides are saying. Let’s look at the current Government position and Mr Turnbull first:-
- No change at all to people who wish to buy an investment property things to go on as is.
- No change at all to capital gains tax things to go on as is
- No change at all to our current system – nothing is going to change!
Hopefully this is quite clear to all.
Now for the leader of the opposition who does want some change to property investment and people hoping to purchase an investment property to assist with building asset for their future. Firstly, for those who currently own investment property:-
- No change at all to people who own investment property
- Slight increase in capital gains tax (maybe?)
- No change at all to everything else
Quite clear? Mr Shorten will ‘grandfather’ current rules so no one who currently owns investment property will be affected by new rules. The big change he does intend making is that negative gearing will not be allowed on older investment properties purchased after 2017. However, if you purchase a brand new investment property, then there will be no changes at all!
Hopefully this makes the implications of all the debate simple and clear.
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