quote:

Originally posted by echosystm - You have $1213 loss per month of which the govt pays $?

that depends entirely on your income; the loss is made against your income. in my case, its 30%. in lilith's case, the greedy bitch probably gets more

and remember, its not the government thats paying anything; its you getting your taxes back. taxes that would otherwise stay with the department of treasury thank you very much!

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quote:

Originally posted by echosystm Lets say you have ... and an income of $75,000 a year.

my example fails though...

i want to see a comparison of no negative gearing vs. negative gearing and the end result

$75,000 = 30c in the dollar.

but of course, it wont be $75,000, it will be say, $69,000;

you have spent $6,000 in interest payments above your rental return. a piece of property that has increased in value by 10% over that year. let's say that its your $300K house in 30 years (good luck in 20 champ!). so now your $300K house is worth $30,000 more.

and that you get back $2000 from the tax man for the $6,000 dollar investment you made in the house.

if we can sell for that price, youve spent $4000 on something thats gone up by $30,000. yes, if would be awesome if you spent -$4000, like in beat blog's examples, but good luck finding those in today's market!

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quote:

Originally posted by echosystm i want to see a comparison of no negative gearing vs. negative gearing and the end result

fuck that. speak to someone good with maths!

dont invest in property to get the negative gearing, invest in property for the benefits of property. if you can buy a house right now as a rental property and NOT negatively gear it then buy it yesterday.

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Last edited by pkcRAISTLIN on Aug-11-2008 at 08:17

keep on gentlemen. i've learned a bit from this thread