Property expert, Jason Snaddon from Love Property has something to say about all this talk of negative gearing.
“Oh goodness I am so sick of the rhetoric over negative gearing and what’s going to happen if it stays or goes.
It should not matter what happens to negative gearing.
You are investing in property for the growth and the yield. Buying property based on tax benefits is not investing.
Think about this! We humans have this inherent need to have a roof over our heads. We have to pay for that, whether we rent or own. What this means is we have consistent and ongoing demand for housing. As long as we have population growth and employment to support the population growth, we have demand.
Supply/demand is what gives capital growth over time.
So with your cash flows, always look at the pre tax cash flow. This is what you must base your investment and affordability on. If this works for you and you are prepared to invest for the medium to long term, then your investment will pay off over time.
The tax benefits are the cream on the top to minimise the cashflow. So whether they keep it or get rid of it (which I do not believe they will) it should matter not.
Nuff said!”
To find out about investing in property, call Jason from Love Property on 02 8217 9300 or email jason@loveproperty.com.au.
