Investors with 10 or more properties to their name have more debt than smaller-scale investors but use negative gearing and capital gains discounts to keep buying, tax office data shows.
And as the article says - this data is only from individual tax returns. It doesn’t cover companies.
Instead we could start by getting rid of John Howard’s capital gains tax discounts on properties. That alone massively distorts where investment dollars go in this country. Of all the fucked things about real estate that has to be the one that is most unfair. Why the hell should you pay less tax on speculating existing property than you do when you work on something that actually produces value?
If that didn’t correct things enough there are more things that could be done: banning ownership by non citizens, replacing stamp duty with annual land tax, incentives to discourage land banking, realistic population targets, and dare I say it; limiting negative gearing to new builds only.
I don’t think limiting is necessary.
Instead we could start by getting rid of John Howard’s capital gains tax discounts on properties. That alone massively distorts where investment dollars go in this country. Of all the fucked things about real estate that has to be the one that is most unfair. Why the hell should you pay less tax on speculating existing property than you do when you work on something that actually produces value?
If that didn’t correct things enough there are more things that could be done: banning ownership by non citizens, replacing stamp duty with annual land tax, incentives to discourage land banking, realistic population targets, and dare I say it; limiting negative gearing to new builds only.