with the labor proposed neagitve gearing drama, im currently living in my apartment and thinking to make it an invesement before labor gets in.
I have been living in i for 10 months and bought it new and moved.
what are your thoughts on labor changes?
thanks
How long to live in a primary residence before it can be rented out as an investment property? QLD
newbiesh on 15/12/2018 - 21:03
Last edited 16/12/2018 - 09:20
Last edited 16/12/2018 - 09:20
Comments
i wont but please do the same :D
I definitely wont.
There is a out 1.5 million people negative gearing. I hope they all vote the same.
Yes, must not vote for anyone that makes housing affordable for people
@WreckTangle: cmon man, interest rates are low, buying in cash is not affordable anywhere in the world.
housing is affordable
The median income for Australia (earnings - tax) is 44K. Most of Australia cannot afford to buy residential housing.
@Diji1: So is that not a median income issue? Most of Australia could then not even afford a house at 200k. Maybe we should do a raffle to give away free houses.
Most of Australia cannot afford to buy residential housing.
65% of Australian households own their property either outright or with a mortgage.
https://theconversation.com/home-ownership-remains-strong-in…@Diji1: My daughter earns substantially less than that, and her husband even less, but they were told they could borrow enough to by a pretty decent home - a lot more than my first home.
The main factor in unaffordability is first home buyers expecting too much.
eg there is a lot of well-established people wanting property in Sydney and Melbourne. That should not be your target location.If first home buyers were looking at 1 bedroom apartments at the furthest train station from the city, they would see housing is a whole lot more affordable than a 4 bedroom double brick home with lock up garage in inner suburbs.
@WreckTangle: What study or science did you put behind the fact that you think getting rid of negative gearing will make housing affordable? Just because the gubbermint said so? you believed it? even they havent thought it through.
If a house cost 900k you need a 180k deposit to buy it.
If that same house dropped to 600k you will still need a 120k deposit.
I highly doubt the people moaning and sooking about housing affordability are the ones sitting there with 120k cash going, "if only houses cost 600k and not 900k, I could buy a house, I wish the gubbermint did something about this" …
The people that complain about housing affordability, were never in the game to begin with and probably never will be, irrespective of what government policy comes into play.
What study or science did you put behind the fact that you think getting rid of negative gearing will make housing affordable?
Well based on the imaginary scenario you created which supports your argument and the high level of doubt you have clearly you have no need to produce a study that 99% of economists disagree with!
I highly doubt the people moaning and sooking about housing affordability are the ones sitting there with 120k cash going, "if only houses cost 600k and not 900k, I could buy a house, I wish the gubbermint did something about this" …
I can guarantee you I know a number of people in their 20-30s in this exact situation…
@BobLim: With 100k+ cash? I can also guarantee you they probably feel they deserve a 4 bedroom houses in Bondi. Hence housing is unnaffordable to them. In penrith they are 25% of the way to a debt free lifestyle.
@WreckTangle: Introducing bills that may limit negative gearing won't stop at lowering property prices. 1000s of Australians may also have their hours cut or start losing their jobs because of the downturn in the property market.
@WreckTangle: If you think negative gearing has a major effect on housing affordability, I've got a bridge to sell you. Without a doubt, the most significant impact of housing affordability has been mass immigration which is pushing up demand whilst supply hasn't been able to keep up. Cashed up Chinese investors buying large swathes of properties are to blame as well as the government for allowing it.
@WreckTangle: Housing price is a function of supply and demand. You want a government-controlled economy? (Ironically) move to China.
smart, please spread the word; let others know what the labor is planning.
Yeah, remaining 14m vote for labor
@dcep: There only 16m Australians enrolled to vote. About 1/2 may vote to keep the current government in place.
Existing negative geared properties can continue to be negative geared so not sure what your point is here?
@chumlee: Because the current crop of politicians looking to retire obviously dont want to affect their nest eggs.
It won't affect those who are already neg. geared. It won't affect those who buy a new build.
But it will take some steam out of the market.
It may make those without experience think twice and do some self education about where they invest $500k or so of borrowed money.They will only make it on new investments, not existing.
*Labor
Simple. Assuming Labor wins, move out and list it for rent before they implement the changes.
Or are you looking for some kind of loophole so you can continue to live in it?
How to live in a primary residence before it can be rented out
The same way you'd live elsewhere
How long*
That makes more sense :-)
If you got some sort of first home owner/new property grant check if you don't need to live in it for 12 months
make it positive gearing then
Negative gearing means you are losing money and hoping for capital gains.
We just experienced the mother of all property booms - a once in 30 to 40 year event.
Despite what the propert industry says, there is an oversupply of property.
Good luck to all the heavily geared investors. Pain time is coming
you only need one roof to keep the rain off your stuff and to keep you from being homeless… anything else is want… not need or necessity. half the world is starving and you've built or bought a property you don't need… simply to make money from others.
My tenants would disagree
ps. … and this whole discussion is about landlord's losing money.
Anybody negative gearing is providing a community service, which was appreciated by politicians in the past.People who can't afford to buy still won't be afford to buy. It's not like sellers are going "Welp, no buyers, guess I'm going to give away my property for free."
unless you purchased it with a grant like first home buyers scheme there is no waiting period. (In WA the wait period for people who purchased with a first home buyers grant is 12 months).
A few things:
If you got any first home buyer grants or benefits, there's a set time you have to live in there otherwise you have to repay those benefits.
And CGT - you can get a CGT discount after living in it for a set time, so not necessary but generally preferred.
Dont vote labour