If the ALP win the election next month, negative gearing and other taxes will undergo major changes.
Property experts believe that these new tax policies will have a significant impact to the Australian property market.
Here are the major policy changes that Labor will implement:
· Negative gearing will be limited to newly
constructed housing starting 1 January 2020
· Capital gains tax discount for assets held
longer than 12 months will be reduced from 50% to 25%
Here are some tips from our most successful RealRenta Landlords on how to
prepare for the property market after a Labor victory:
· Ditch your property manager and self-manage
using RealRenta. This type of market, is not
the time to fritter away your investment income on over-priced property
managers
· Review your portfolio and make sure that
cash-flow is consistent
· Check to see if there is an excess amount of
deduction that could be offset (what is the mix of positively geared and
negatively geared properties in the portfolio?)
· Engage a good property tax professional to help
you make any decisions
· If you can hold on to your properties and play
the long game- wait this downturn out.
Get all the benefits of RealRenta’s
ledger by using RealRenta Essential- a completely FREE version
of RealRenta.
RealRenta Essential enables property investors to take
advantage of RealRenta’s ledger systems by manually entering in all
transactions.
RealRenta Essential provides investors with all the
benefits of the RealRenta platform, minus the automation.
To take advantage of RealRenta
Essential, all you have to do is choose the "Free” option when
you upload a lease agreement.
Marlene Liontis & Jason Gwerder
Saturday, 27 April 2019
