There are many who feel that negative gearing should be abolished. On the other side of the spectrum, there are many loyalists of the method too. Of course, some keep a moderate attitude. Pete Wargent for the Property Update writes a compelling piece wherein he also illustrates the impact of negative gearing through a few live examples.
I wrote an article recently wherein I summed up how fee and taxes (please include Stamp Duty too) are among the prime buying concerns today. Well! I assume this article then will have its fair share of readers. While you can always claim a few tax benefits as a real estate investor, you should be ready to pay a few taxes just as well (I guess more than a few).
Going by an article on the website Smart Property Investment, fee and taxes are prime concerns of home buyers. According to the article, a highly esteemed loan comparison website, finder.com.au, evaluated 7,000 questions on home loans (those which were posted in its forums). The website inferred that maximum concerns were related to fee. Fee included set-up fee as well as loan pre-closure fee.
This year the tax office will breathe fire on property investors. Each stratum of investor- newbie, mid-sized portfolio holders, investors high on net worth- will be covered in the crackdown, says Michael Yardney in an article for the Property Update.
After all, the Tax Office has found its talisman- a vast repertoire of property data that was lying with the State Revenue Office for long. The records collected online can help in tackling the logistic challenges of such a big crackdown.
Being transparent and morally correct is the way out of the situation. If you are a new owner of rental property, file your returns carefully and in time. If you are a high net worth individual, remember that audits for your hierarchy have shot up from 680 to 1500.
Ambiguous payments made to contractors, nepotistic dealings made with kith and kin, and subtle transfers made via SMSFs, may all stand in the line of tax penalties.
You can read the whole article here.
Are you an expat investing in Australian properties? Have you checked with the Tax Office?
The government-in-coming will do well to abolish stamp duty, says the Real Estate Institute of Australia (REIA). Stamp duty, levied as a traditional property tax, is not only inefficient but also decreases productivity of the nation.
Unless you have benefitted from a matrimonial home via the Family Law Act or gained through a gift in Will, you will be at the receiving end of the Stamp Duty storm. Property taxes are pretty high for Australia when compared to other developed countries, suggests Anthony Keane for the website news.com.au