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Why Super for Housing is a Bad Idea - Purplepingers (youtu.be)

submitted 5 months ago by [email protected] to c/[email protected]

20 comments fedilink hide all child comments

NOTE: Video sponsored by the ACTU

Key points

It would make house prices increase by more than the maximum amount people could withdraw
It would cost the government $1 trillion in the long run
It would leave people with $200k less in retirement savings
It would significantly affect the returns on all superannuation as funds would need to keep more cash reserves uninvested so it is available for withdrawal

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[–] [email protected] 5 points 5 months ago (3 children)

People will just go back to what they did before negative gearing: Make businesses and move their properties into that. "Oh, your business made a loss paying more interest than it brought in as rent, I guess you can write that off as a loss and not pay tax on your income".

The result is the same, but it's more work for the ATO.
My old boss still had his holiday home under the business, because it's how he did it before Negative Gearing was a thing.

[–] [email protected] 7 points 5 months ago

Make it so that interest on money borrowed against residential real estate can't be declared as a business loss then. That'll also make speculating housing investment funds a bad idea

[–] [email protected] 3 points 5 months ago

If that were the case we wouldn't have aeen a sharp uptick in investment at the same time NG was introduced.

You're always gonna have people finding ways around things, the point is to make it hard enough your average schmoe bails on the attempt

[–] [email protected] 2 points 5 months ago

Same thing would probably happen with property limits then