Property Council Report and HIA Research on Negative Gearing

From the Editor Property Council Report and HIA Research on Negative Gearing. The Property Council of Australia’s analysis of the latest Australian Tax Office statistics show that those claiming negative gearing benefits included 83,000 clerical workers, 62,000 teachers and child carers and 12,300 emergency service workers. Hairdressers, sales assistants, transport workers and cleaners are among those who have negatively geared their investment properties. In total, the figures from 2011-2012 point to 325,585 in working-class roles. A total of 91 per cent of those claiming negative gearing deductions had one or two investment properties and were not property barons, Property Council of Australia executive director Nick Proud said. “It seems fairly crystal clear that we have a significant number who earn around or under $80,000 that have one property,” he said. “Negative gearing provides an opportunity for average working Australians to save to get ahead.” Prime Minister Tony Abbott ruled out any changes to negative gearing, saying he didn’t want to start the tax reform debate by increasing taxes. “The reality is in the tax figures and it’s the reason the PM ruled out [changing negative gearing] in one word,” Mr Proud said. The report notes that the ATO statistics of taxable income are calculated after the negative gearing benefit has been applied. And, according to research by The Housing Industry Association, making changes to negative gearing would take its toll on housing investment, affordability and living standards. “Independent research has found that changing residential negative gearing would reduce housing affordability, and under the current housing policy settings, would lower Australian living standards,” said the HIA’s executive director, industry policy and media, Graham Wolfe. “New housing is one of the most highly taxed sectors in the economy, and the removal of negative gearing would only make that situation worse and discourage investment.” Mr Wolfe said that a wide range of demographics would be affected by any changes. “It is important to remember that negative gearing is not the domain of so-called ‘wealthy investors’. Official taxation statistics for 2011/12 show that over 79 per cent of those with a rental investment property have a total income less than $100,000 and around three quarters earn less than $80,000.” He said negative gearing promotes private investment in the rental market, which stimulates economic activity and takes the pressure off social housing and the public purse. “With an ageing workforce and future pressure on services, policy settings such as negative gearing that promote wealth creation and self-sufficiency in retirement should be promoted,” said Mr Wolfe. A property is negatively geared when the costs of owning it – interest on the loan, bank charges, maintenance, repairs and depreciation – exceed the income it produces. The benefit of negatively geared investments has allowed many ordinary working class Australians to invest in property and take control of their financial destiny. Australian Residential Property Planners

Our goal is simple: to provide the greatest possible net operating income, while continually enhancing the value of the asset. We believe in using proven and new strategies and continually looking for new ways to provide cost savings for the property and the owner Our vision To provide a flexible and all-encompassing management service for our customers' properties and assets. Our values Exceptional customer service.  Transparency, punctuality and reliability.

Our goal is simple: to provide the greatest possible net operating income, while continually enhancing the value of the asset. We believe in using proven and new strategies and continually looking for new ways to provide cost savings for the property and the owner
Our vision
To provide a flexible and all-encompassing management service for our customers’ properties and assets.
Our values
Exceptional customer service.
Transparency, punctuality and reliability.

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About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. http://goanimate.com/movie/0M4bvcZzgIbI?utm_source=linkshare&uid=0u6RGtWsmlVc Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085. http://www.ljgrealestate.com.au http://www.yellowpages.com.au/qld/aspley/lj-gilland-real-estate-pty-ltd-14091356-listing.html http://au.linkedin.com/in/lindajanedebello http://twitter.com/GillandDebello http://www.facebook.com/pages/ljgrealestate
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