Next Leg Up $1336, page-373

Well firstly I bought the property before the end of negative gearing was a serious discussion so obviously that played into the decision.

Secondly I still think it will take some time to commit to actually changing tax legislation on negative gearing as there are a lot of vested interests both in government and also donors who wouldn't want the legislation changed.

Thirdly there are a lot of macro factors that play into the situation. Things like where property prices and rents are at the time I want to move from here, and where interest rates are, and likely headed. At this point in time it is hard to tell how long this low rate cycle in Australia might persist. On current circumstances though my property would be essentially neutrally to slightly positively geared excluding Depreciation. So no problems on a cashflow basis. If I can't claim depreciation so be it (it was always kind of stupid you could claim depreciation on an appreciating asset - but if the opportunity is there you may as well take advantage of it).

Obviously however if the macro environment changes and interest rates have risen dramatically compared to rents or the likes and it turns out the property would be negatively geared on a cashflow basis, I will just sell it to fund wherever I live next.