Category Archives: Uncategorized
The gorgeous photos of the derelict properties you still can’t afford | Australia news | The Guardian
A few years ago, I started doing Argentine Tango. While learning this highly complex dance, I found dances frustrating and unfulfilling. Until I met Joe. My dances with Joe were delightful! Each time I left his embrace feeling like the most elegant, talented dancer in the room. I thought “Wow – tango is easier than I thought!”.
My dances with Joe, a professional tango dancer, were amazing because of his skill level – not mine. A skilled dancer compensates for everything the unskilled person does wrong. When I dance with Joe, if I am off time, he gets me on time. On the wrong foot? Joe fixes that too. If my frame or connection is weak, or my musicality is off, Joe has to compensate for all that. Meanwhile, I am blissfully unaware and having a fantastic time – relishing in my delusions of competence. But Joe is having to work extra hard to make this dance tolerable / enjoyable…
View original post 322 more words
LJ Gilland Real Estate: Property depreciation: Article by Mike Mortlock @MCGQS @GillandDebello @ljgrealestate
Too many property investors are missing out on important cash flow by neglecting depreciation.
Blogger: Mike Mortlock, MCG Quantity Surveyors
Many property investors are missing out on beneficial depreciation tax claims. The annoying thing is how often this happens, when it really doesn’t need to happen at all!
Tax depreciation is often an overlooked method of obtaining tax deductions on investment properties. It is a big help in enabling investors to minimise their tax liability and improve their cash flow. Sadly though, we often see situations where depreciation either isn’t maximised to its fullest potential, or worse yet, overlooked entirely.
The Australian Taxation Office (ATO) recognises that the value of capital assets reduces over time as they approach the end of their effective life. These assets can be written off as a tax deduction ie. ‘depreciation’.
What depreciation should I be considering?
If you own an investment property (new or…
View original post 830 more words
Do you know what we call negative gearing?
A socially acceptable way of saying “I’m losing money”.
Case in point: I got an email this week from a bloke asking me for advice.
He had what I call “property fever”, a strange affliction that comes from attending too many auctions, property seminars, or both.
He’d gone in full pelt: buying two investment properties, both negatively geared (in other words, he was able to write off his investment losses against his income).
The problem for this poor chap was that he had lots of losses but not a lot of income.
He was so negatively geared that he was positively screwed.
And that’s the problem with this policy: it encourages punters (aided and abetted by an industry of property spruikers, real estate agents and debt floggers) to buy money-draining, over-inflated property and lose money — while copping a high-five from the taxpayer.
Worse, young families can’t compete because these investors can afford to pay more for a property (the Australian taxpayer is effectively subsidising them).
Over the years, I’ve spoken to parliamentarians from both sides of the political divide, and they all agree, albeit privately, that negative gearing is a rort that distorts the property market and prevents young families from breaking into the property market.
However, they won’t do anything about it.
That’s because politicians from both sides suffer from a different kind of fever to my negatively geared friend.
Theirs is called “I want two flags on the bonnet of my chauffeured Holden Statesman” fever, and it’s so virulent that it takes over the rational policy-making part of their brains.
In short, the lesson here is simple: don’t get in between a statesman and a Statesman.
Scott Pape’s finance columns appear in the business section of the Herald Sun on Saturday and Sunday