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This Man’s Opinion

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Well, the hot topic this week is the reshuffle of the Negative Gearing benefit and your question is how it affects you.
 
Firstly I will reference my favorite quote Don’t Panic and bonus points if you can pick the novel.
 
This has become the hot topic picked by politicians and with the looming election we will see this served around the court, like the finals at the Australian Open, with one side defending the title and the other challenging. The defender denying and the challenger fighting.
 
The problem here is that we will see a lot “lost in translation” and be left with either a feeling of relief or “impending doom!” depending on who you listen to.
 
Now my 2 cents into the mix.
 
This is not a bad thing and it actually helps to cater to both ends of the market. The market being You the snappy investor or the Striking out first home buyer or just Home buyer in general.
 
What it is:
INVESTORS
Only existing, already built houses, are losing the Negative Gearing benefit and if you have been investing for a while then you already know that the majority of pre-built homes are generally already neutrally or positively geared (this is in the case that you are making smart investment moves with your serviceability and are not over extending on one property alone)  So the smart investor, is already purchasing “Off the Plan” properties to get the 3 C’s – Cash in on maximum depreciation  – Capitalize the maximum benefits from off the plan discounts  – Catch the best capital growth from emerging development areas or “Hot Spots” So really Investors will notice this about as much as a roundabout in the road and if anything it will help steer the more “stubborn” investors in the right direction (you know who you are).
 
OWNER OCCUPIERS Affordability… This is what we are being told, If the investors are not going to be looking at the property you want to buy = less purchasers around = less competition = cheaper houses…. That’s the theory and the maths behind it… Will this be the case, well time will tell, I personally do not see it as being something that is going to “Rock” the market, but it may have an impact come Auction day, I personally feel that this will still come down to  1. How good is your Estate Agent 2. How good is your Buyers Advocate 3. How much do you really want the house with the hedge The most important thing to remember about purchasing an owner occupier is that it is 85% of the time a purely emotional purchase.
 
So bottom line as far as I can see.
 
Imperceivable impact to investors and a good push in the right direction possible benefit to Owner Occupier purchasers and “Junkers” (the get in there and get your hands dirty flippers).
 
Winners… well everyone from where I am standing all the way down to boosting the economy and getting our Tradies paid. 
 
I will leave you with this.
Just because it is a chew toy in parliament and in the media does not make it a bad idea, and also do not take my word for it have a google around and see for yourself.
 
Shaun Fox 
Shaun Fox
Shaun Foxhttp://www.shaunfox.net
Shaun Fox is an entrepreneurial influencer and mentor a business coach and advisor. He is best characterised by his perpetually optimistic temperament in his professional pursuits, surpassed only by his charismatic and enthusiastic engagement with others in all his relationships. Shaun’s flair is not just limited to his wardrobe. Shaun’s approach to business is simple: irrespective of the product, anything can be achieved as long as you think creatively, assess the entire value chain and put in the hours. He has successfully applied this philosophy across a number of industries, including financial services, entertainment, hospitality, accommodation, tech, biotech, and mining. Shaun has been involved in the creation and management of financial companies for several years and delivers a simplified approach to the education of financial concepts and investment strategies. His vision is to create an entry-level platform that offers an easy path to investment by creating personalised education and an investment program that anyone can use. Shaun has always believed that the best way to create a successful enterprise is to include the entire value chain of people in the process and share the rewards of that success. “The only person’s behaviour we can control is our own and the only thing we can truly give another person is information.” – William Glasser an entrepreneurial influencer and mentor a business coach and advisor. He is best characterised by his perpetually optimistic temperament in his professional pursuits, surpassed only by his charismatic and enthusiastic engagement with others in all his relationships. Shaun’s flair is not just limited to his wardrobe. Shaun’s approach to business is simple: irrespective of the product, anything can be achieved as long as you think creatively, assess the entire value chain and put in the hours. He has successfully applied this philosophy across a number of industries, including financial services, entertainment, hospitality, accommodation, tech, biotech, and mining. Shaun has been involved in the creation and management of financial companies for several years and delivers a simplified approach to the education of financial concepts and investment strategies. His vision is to create an entry-level platform that offers an easy path to investment by creating personalised education and an investment program that anyone can use. Shaun has always believed that the best way to create a successful enterprise is to include the entire value chain of people in the process and share the rewards of that success. “The only person’s behaviour we can control is our own and the only thing we can truly give another person is information.” – William Glasser

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