Investors with 10 or more properties to their name have more debt than smaller-scale investors but use negative gearing and capital gains discounts to keep buying, tax office data shows.
And as the article says - this data is only from individual tax returns. It doesn’t cover companies.
They’re using “Mr Kumar” as an example here, but this story goes back a long way. Huge parts of the wealthy northern suburbs, and prime real estate near the most popular beaches in Sydney are held by a handful of people. They bought this property a long time ago, but the “newer” property investors are basically working off that template. You can actually walk around those suburbs and find a bunch of empty properties. They don’t care about the rent, they prefer to show as little income as possible. They just want the capital gains when they sell. Often these people are retired and can get significant tax concessions.
The “newer” investors are doing this but with properties which are much cheaper. They do it like a job or a business. It’s not healthy for the country either, but it’s actually less of a rort than the institutional wealth in this country.
They’re using “Mr Kumar” as an example here, but this story goes back a long way. Huge parts of the wealthy northern suburbs, and prime real estate near the most popular beaches in Sydney are held by a handful of people. They bought this property a long time ago, but the “newer” property investors are basically working off that template. You can actually walk around those suburbs and find a bunch of empty properties. They don’t care about the rent, they prefer to show as little income as possible. They just want the capital gains when they sell. Often these people are retired and can get significant tax concessions.
The “newer” investors are doing this but with properties which are much cheaper. They do it like a job or a business. It’s not healthy for the country either, but it’s actually less of a rort than the institutional wealth in this country.