What is it about "negative gearing" that so upsets some people? It is exactly the same as borrowing money to start, or finance any business.

If I borrow to set up a restaurant, buy a taxi or build a shopping center, the interest on my borrowings is tax deductible. If I were a tradesman, with good earnings, I would want to set up another form of business, before I became too old to handle the physical work involved.

Why should I not establish rental housing, rather than build a shopping center?

Without people using cash flow from other areas to subsidise their acquisition of rental housing, rents would have to rise dramatically.

I would never go into rental housing, it has too many problems for me, but I have never understood the extreme dislike of many for it as a legitimate business.

Is there any good argument against confiscating the estates of deceased baby boomers to pay for the mistakes their generation has made?
See it's my kids, now aged 15 and 11 who are going to have to pay for their grandparents largesse and incompetence, they're going to be growing up under "austerity measures", they're going to be unfairly taxed to provide lifetime social security benefits for millions of third world migrants and dumb White people who neglect their own personal responsibilities.
Even if we reversed all the changes our parents made it's still going to be a grim and relentless struggle for our kids because we are not going to be able to help them at all, I'll be working until I'm at least 75 just to stay afloat.

Candide,

If you believe there are $$windfalls to be made from rental property what is preventing you from getting a bit of the action?

I have been to meetings of (residential) property owners. I must tell you that for people who are supposedly wealthy as you obviously believe, they sure dress as though they buy at St Vinnies, and the cars outside were older versions of very common, cheap cars. All had heaps of troubles to discuss too, which explained their haunted looks.

Government can't manage public housing. It was always too complex, too expensive and damned unrewarding in every way. So government has unceremoniously shoved its welfare recipients onto the private owners. Tenancy regulations are drafted to protect the most incompetent and wilful tenants and rental authorities and tribunals know how to protect their large and growing hierarchies.

Anyhow, the mums and dads who provide the lion's share of rental housing would be lucky to be earning a few percent gross for their sacrifice, worries and loss of their own quality of life.

Candice, you and others like you should be worried that these mums and dads investors do not realise how futile their property 'investing' really is, forever sacrificing and laboring themselves in the hope of a pay-off one day, but taxed once again of course.

From the facts, not the blurb of the white shoe brigade and envious superficial assessment from people such as yourself, these property investors live on a razor edge and it would be easy for them to collapse financially from a myriad of serious events. Murphy's Law, with a lot of help from 'those' tenants (who are in an abundance).

As well, it would be easy for the ham-fisted actions of government to provoke a lasting run against investment in rentals. Then again, you might think that a downhill run is a good thing too. But once again, you don't consider the negative consequences.

I wouldn't advise any family member to invest in rental property. You should 'invest' in it though for the learning experience.

Hasbeen,
I'm fully aware that negative gearing is as entrenched in our psyche as the unions right to ask for evermore pay ncreases. Just think what would happen if we did away with both ? Just think if either we make negative gearing available for all not just business or leave things as they have been for a long time & the negative effects of which are now starting to hit home.
I think negative gearing is one of the main factors for our everything going down the tube.
Just imagine simple reward for effort/risk, how gratifying that would be instead of what we have now. No wonder those in big business can't help making more money even if they didn't want to. Don't blame the businessman, blame the system. Flat tax, even playing field, no blame,, simple !

Dear Jay of Melbourne,

I was deeply saddened by the plight of your children aged 15 and 11 who will have to pay for their “grandparents largess and incompetence”. I also note you have changed the theme of this thread from “giving to the next generation” to “confiscating from the baby boomers”.

I thought it worth a mention that it was the baby boomers who by 2007, had put $22bn in the bank, accrued $70bn in the future fund and paid off the previous ALP governments $94bn debt on the nations credit card.

Since 2007, the APL had spent all the $22bn in the bank, burnt a hole in the future fund and racked up a colossal $350bn and growing national debt. I doubt this had much to do with your grandparents but I’d be interested in their comments should you dare to raise the matter of “confiscating” their hard earned cash.

There are always two sides to a story, so the other side of your children’s predicament is that you as parents have failed to provide financial security for your children, are insufficiently qualified to get employment that provides for them or their future, can’t get the previous generations to give you their hard earned money and as parents, you are doomed to work until the age of 75? All because you are a financial failure and wish take money from others or blame them anyway.

It is long past time you found a way to be a success in the eyes of your children and to stop blaming your grandparents and the rest of Australia for your personal financial failures.

It is also time you broke the parasitic relationship you have with the rest of Australia.

Educated or not, I can relate to any employers reluctance to hire you. Get a life of your own and man up to your responsibilities instead of whining and blaming others for being the pitiful specimen you are.

Jay Of Melbourne for gods sake stop whinging. Just what do you think the baby boomers got that your kids haven't got.

I started school in Townsville in 1946. In a class of 40 there would not have been 5 kids with shoes. Kids depending on legacy, with no fathers, or those lucky ones whose fathers had just got back from the war could not afford shoes.

My father came out of the air force in 1946 with a civilian suit, 57 pounds & a train ticket home. He was 36 years old, with a wife & a child, & sweet Fanny Adams to show for it.

Kids like me had pillowslips made from flour bags. Some because the family could not afford anything else, or because there were no pillowslips to buy, & no material to make them with.

Perhaps you should count your blessings old chap.

If you don't want useless immigrants here, & I agree fully with that, let it be known loud & clear that you will; not vote for any party that doesn't promise to stop them completely. Encourage others to do the same.

politicians will promise anything to get elected, all you have to do then, is make sure they are Abbott type promises, not the Gillard type.

Just don't expect me to provide for your grandkids. I'll look after mine, you look after your own.