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Negative gearing was identified as one of the key drains on personal tax collections. Negatively geared property investors lost an astonishing $13.2 billion in 2010-11, up from $10.1 billion the year before. The latest Tax Office statistics show the average loss per negatively geared investor was $10,950, up from $9130 the year before. The average loss for …
Continue reading “About Negative Gearing – Some Interesting Facts”
People hate negative geraing because they thoughts “it distorts the market, causes property bubble, allows the rich getting richer, and leaves the poor no where to live”. They tend to blame negative gearing for their not being able to afford a property. While, is it ture that negative gearing causes so many negative things? Will …
The most common misconception about negative gearing is that it allows you to reclaim the entire shortfall between rental income and expenses from your tax bill. The reality is that only a proportion of the above-mentioned losses can be claimed, in line with your marginal tax rate. So if you pay tax at 30 per cent, you can claim …
Continue reading “The most common misconception about negative gearing”
Here is some information about property investors and property investment in Australia. There are about 1.6 million taxpayers claiming negative gearing deductions. About 90 per cent of investors purchase existing properties. More than 400,000 investors own more than one investment property. One in four property investors holds their rental property for only 12 months, just …
Continue reading “Some useful information about property investors in Australia”
Tax Watch convenor Julian Disney says negative gearing should be blamed for house price inflation in Australia. “I think one of the major causes of the house price inflation is the tax system,” he said, referring to negative gearing that allows investors to write off the costs of their interest payments and the concessional capital gains …
Continue reading “Should negative gearing be blamed for house price inflation in Australia?”
A confluence of housing shortages, low interest rates, speculative fervour and last year’s move by the Rudd Government to relax foreign ownership rules on real estate have turbo-charged house prices. In the latest Investor Pulse survey, conducted jointly by BusinessDay and marketing research group Colmar Brunton, there is no indication that investor appetite for property …
Continue reading “Do you think investors are stupid to buy a property bubble?”
In order to maximize your total tax deductible amount at the end of the financial year for a property that’s negatively geared, there’s a range of expenses that can be included in the total annual cost of the property for deduction purposes. 1. Prepaid expenses It’s possible to claim any prepaid expenses that are related …
Continue reading “What investment property expenses can I claim as TAX deductions?”