certain suburbs are going to have negatively geared property no matter how you roll the dice.Schifty wrote: ↑November 11, 2018, 9:06 amPeople's taste in housing isn't going anywhere.papabear wrote: ↑November 11, 2018, 7:39 amIf you tax bananas at 20 percent no matter retail wholesale whatever keep it simple no credits.
Then the banana farmers all start going broke as people’s taste move towards pears and apples. The govt thinks that’s harsh we will bring that banana tax down and if you own your banana trees for a year you only have to pay half of the 20 percent tax. The govt of the day calls it the big banana concension.
Some banana players move on some survive but the market eventually falls into line.
Some time later a party announces **** banana farmers we a removing the big banana concession on old banana plantations but you can have it on new trees.
In my mind that is a big banana tax grab.
Only a Venezuelan communist would think otherwise.
Or you are so sensitive about housing you refuse to see logic on the issue.
Also the policy doesn't effect those that are currently negatively geared, it just means in the future you can only do it on a new property and not an existing one.
So it just moves the incentives for investors into new developments that add stock to the market.
Investors are still free to buy existing property, it just means they'll have to be positively geared.
It is just unfortunate that those that invest in those suburbs will now have to pay more tax if this policy gets through.