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I understand that boomer. Both neg gearing and CGT discounts...

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Dave R

58,089 Posts.

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18/01/20

17:52

Post #: 42452248
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Originally posted by boomeronrations: ↑

Hi Dave,
Again, I would ask the question, how much is that driving up of prices caused by NG, and how much by the cgt regime?
And what effect does the cgt regime have on the property investors decision making on price?
At the heart of the issue , do I pay 50c in the dollar on my profits or 25c?
The ability to make a higher after tax profit using the cgt system gives a greater scope to bid up the price of those assets, even if the real gross, pretax yield is lower.

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I understand that boomer. Both neg gearing and CGT discounts drive up house prices.
There is no reason for the government to encourage investment in housing because unless it is building new housing there is no benefit to the greater economy.
It would be better to encourage investment in activities that actually produce something tangible.
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