gerhardtumen725
New Member
For those with residential investment properties: what will you do if you lost both the CGT Discount and Negative Gearing on your properties?
What should I do if I lose CGT discount and negative gearing?
- Thread starter gerhardtumen725
- Start date
frezzerburn69
New Member
CGT change doesn't matter unless you decide to sell.
Negative gearing changes won't prevent landlords from using expenses to offset rental income....
If you hold a property long enough, the rental income will end up exceeding your holding costs making the property positively geared (if it wasn't already).
So this legislation change will just mean property investors will just hold their properties indefinitely further reducing the number of properties for sale and increasing property prices.
Kind of the opposite of what first home buyers want... but they will vote for it anyway because they think it will somehow cause the property market to crash and make houses cheap for them to buy 
Negative gearing changes won't prevent landlords from using expenses to offset rental income....
If you hold a property long enough, the rental income will end up exceeding your holding costs making the property positively geared (if it wasn't already).
So this legislation change will just mean property investors will just hold their properties indefinitely further reducing the number of properties for sale and increasing property prices.
Kind of the opposite of what first home buyers want... but they will vote for it anyway because they think it will somehow cause the property market to crash and make houses cheap for them to buy
EpicGecko47
New Member
Let’s focus on investments that bring in more cash . Negative gearing only helps if you’re losing money (not great). So, why not earn a dollar and keep 70c way better than losing a dollar and getting just 30c back!