Pete Wargent blogspot

Co-founder & CEO of AllenWargent property buyer's agents, offices in Brisbane (Riverside) & Sydney (Martin Place), & CEO of WargentAdvisory (providing subscription analysis, reports & services to institutional clients).

5 x finance/investment author - 'Get a Financial Grip: a simple plan for financial freedom’ (2012) rated Top 10 finance books by Money Magazine & Dymocks.

"Unfortunately so much commentary is self-serving or sensationalist. Pete Wargent shines through with his clear, sober & dispassionate analysis of the housing market, which is so valuable. Pete drills into the facts & unlocks the details that others gloss over in their rush to get a headline. On housing Pete is a must read, must follow - he's one of the finest property analysts in Australia" - Stephen Koukoulas, MD of Market Economics, former Senior Economics Adviser to Prime Minister Gillard.

"Pete is one of Australia's brightest financial minds - a must-follow for articulate, accurate & in-depth analysis." - David Scutt, Business Insider, leading Australian market analyst.

"I've been investing for over 40 years & read nearly every investment book ever written, yet I still learned new concepts in his books. Pete Wargent is one of Australia's finest young financial commentators." - Michael Yardney, Australia's leading property expert, Amazon #1 best-selling author.

"The most knowledgeable person on Aussie real estate markets - Pete's work is great, loads of good data & charts, the most comprehensive analyst I follow in Australia. If you follow Australia, follow Pete Wargent" - Jonathan Tepper, Variant Perception, Global Macroeconomic Research, author of the New York Times bestsellers 'End Game' & 'Code Red'.

"The level of detail in Pete's work is superlative across all of Australia's housing markets" - Grant Williams, co-founder RealVision - where world class experts share their thoughts on economics & finance - author of Things That Make You Go Hmmm, one of the world's most popular & widely-read financial publications.

"Wargent is a bald-faced realty foghorn" - David Llewellyn-Smith, 'MacroBusiness'.

Friday, 13 May 2016

Who claims negative gearing losses (by age)?

Who uses negative gearing?

Perhaps surprisingly, the claimants are mostly younger people.

This doesn't quite fit the popular meme of older generations using unfair tax benefits to crowd out the youth, which maybe is why it wasn't so widely reported.

More than a third of the claimants were aged under 35 in the 2013-14 tax year. 

I expect this share could rise higher still as the respective populations of our largest capital cities pass 5 million and related housing affordability challenges see more young people looking to buy units and apartments as their first step on to the housing ladder. 

However, the above having been said, as a percentage of the persons in each age bracket, as you move up through the age ranges the percentage of claimants as a share of total individuals increases.

Intuitively this makes sense, as these age cohorts have had longer in their working lives to save up deposits and to build up their equity. 

Realistically these days many folk are still in higher education until they are in their mid-twenties, so I doubt that this underlying trend will change too much in the future. 

In fact, people do most things later in life than they used to...including dying!

It's also increasingly common for folk to buy an apartment to live in which later becomes an investment property, particularly in the capital cities. 

Overall, the figures - which I should note here were researched by Cameron Kusher of CoreLogic-RP Data and not by me - show that net rental losses are used as much as a stepping stone on to the housing ladder for younger buyers as much as they are a means for reducing tax by older investors.