Negative Gearing Controversy—Is it a Good Time to Consider Home Renovations in Brisbane?
If you’re a home owner, property investor, or thinking of becoming one soon, the 2016 Federal election was near miss of meteoric proportions for you. The ALP’s attack on negative gearing threatened pull the rug out from under the feet of Australian property investors; with dire consequences for anyone owning a home. Whilst the LNP Coalition victory means negative gearing tax breaks are here to stay for another three years, one thing’s certain: the writing’s on the wall for negative gearing. You need to get cracking on your home renovations in Brisbane if you want to make the most of it while it lasts.
Why property investors LOVE negative gearing
Negative gearing’s what happens when your investment property costs more to buy and run than you actually make from it. If you’re digging deep for conveyance fees, stamp duty, renovations, maintenance, rates, borrowing costs and loan repayments and those costs end up exceeding the rental income you’re getting, your property’s ‘negatively geared’. Depending on your circumstances, you can currently claim back the amount you lose as a tax deduction on your income tax. Essentially, negative gearing means that you will pay less income tax and that can translate to a big tax refund cheque each year. For you that means a passive income stream and extra money in your pocket.
Why 2016 will be remembered as the beginning of the end for negative gearing
Whilst negative gearing is going to be around for the next three years, most political commentators predict that a likely ALP victory in the next federal election will be the final nail in its coffin. The ALP has made a commitment to abolishing negative gearing tax breaks. One thing’s clear: there’s never been a better time for home renovations in Brisbane.
Why you need to get started on your home renovations in Brisbane NOW
The ALP’s attack on negative gearing as a key platform in their 2016 federal election will affect more than just cashed-up property investors who directly benefit from it. It affects you too, especially if you’re considering home renovations in Brisbane. Even if you’re not looking to renovate, you should be.
Even if you’re not a property investor, negative gearing’s been a huge factor in stimulating activity in the property market for many years now. For good or bad, the finger of blame for rising house prices has been pointed fairly and squarely at negative gearing. Rising house prices are great news for you in terms of increased equity in your home. As a home owner, you can use the equity in your own home as a springboard to get into property investment. So, if negative gearing is on the way out, you need to consider starting to invest in property NOW.
The more equity you have in your home, the more leverage you’ll have to invest now and talk advantage of negative gearing tax breaks while you still can. And there’s no better way to maximise the equity in your home than by increasing its value with a great home renovation in Brisbane.
If you’re already a property investor the time’s ripe to take a good, hard look at your investment portfolio. Spruce up the properties that you already own. If negative gearing tax breaks are abolished or significantly eroded, 2019 could see a glut of investment properties on the market as investors off-load properties in search for greener investment pastures. Renters will be spoiled for choice when it comes to properties and they’ll be in a position to demand more bang for their rental buck. A beautifully renovated property gives you an immediate advantage over less attractive properties on the market in the same area.
A shift away from negative gearing will also put more of a focus on capital growth for investors, and a move towards positively geared properties. Again, you can’t go wrong with a quality renovation to tick all of the boxes with your investment property.
That’s why a quality home renovation in Brisbane guarantees:
For you, that means you’re more likely to be in a position to make the shift from a negatively geared to a positively geared property when negative gearing falls by the wayside.
Get moving on your home renovations in Brisbane TODAY!
The fact that negative gearing featured so prominently in the 2016 federal election means that it won’t be long before everyone else catches on too! It’s time to make the smartest move you’ll ever make when it comes to protecting your investment, maximising the equity in your home or even just making your dream home renovation a reality. Speak to us at Marshall Renovations on 0407 122 326. We’ll give you the advice and expertise you need to plan and execute stunning home renovations in Brisbane.