The results are in and to the surprise of many, Scott Morrison has led the Coalition to win this year’s Federal election.
The stability of government and the fact that there are no changes to negative gearing
or Capital Gains Tax
will encourage investors.
We began the year with two big stumbling blocks which have both been overcome.
Now it’s time to get on with business as usual.
The time to invest in the Perth Property Market is NOW!!
- The Haines Royal commission into banking
- The Federal election
Property Investors win
Many property investors rely on the tax benefits of negative gearing
to subsidise their cash flow shortfall in the first years of owning a property investment.
The problem is that many people with only a hazy idea of what it actually is, blame negative gearing
for virtually everything from locking first home buyers out of the market, to causing high property price rises, to ugly greedy investors rorting the tax system.
A property is negatively geared when the costs of owning it – interest on the loan, bank charges, maintenance, repairs and depreciation – exceed the income it produces.
Since the costs of producing an income are generally deductible against the taxpayer’s other income, property investors can effectively offset some of the interest expense against their wages.
Property investors provide an essential service to millions of Australians who chose to or have to rent their accommodation and as such these investors should be treated like all other business people.
In our modern society we pay taxes and expect the government to provide us with certain essential services.
These include hospitals, roads, schools, jails, public transport, aged care and public housing.
Our government provides public housing, but not enough for all those who can’t afford to buy their own property or choose not to.
While government social and public housing programs are helpful, it is only the private rental market that can deliver rental accommodation at the rate and scale that is required.
Property investors save a deposit, buy a property, commit to a loan for 25 or 30 years and provide accommodation for others in our community.
In return we expect to get a reasonable return on our investment risk, just like other business people do.
People wanting to create wealth and minimize the taxation burden choose to run a property investment business.
The fact that negative gearing
tax benefits remain and there is no increase in Capital Gains will encourage investors to return to the market and take on these business risks.
Before you invest, invest a little time with the Nicheliving Investment Team.
We’ve been helping Australians invest in property since 2002.
Find out how the latest Nicheliving Property Investment options can work for you!!