they missed out negative gearing, page-28

Bundalee

govts have outlawed then re-enacted negative gearing because its commercial reality is contraversial & borderline

yes, i was probably wrong in my previous post for implying all negative geared properties are unncommercial

but govts have probably promoted negative gearing in the past primariy out of concern for avoiding a shortfall of rental properties

for example, if on a 20% deposit you borrowed $200,000 for a $250,000 property at 6.6% over 25 years with $15,000 expenses average per annum over 25 years, you would have to rent at an average of $450 per week to break even. that is probably not possible to acheive because rent today is $250pw and in 12.5 years it would be $408pw based on 4% per annum increase

the more costly the property, the more difficult to make a profit

for example, increasing the loan to $800m for a $1m property and increase the expenses to $25,000 per annum, you would have to rent the property for $1,124 per week to break even

all very dubious but the govt allows it

regards