Vince Scully

So a little bit on the supply side, a little bit on the tax side, a little bit on the...

structural side.

So I think all of that's helpful.

And so the consequence of that is they're now going to say, if you make a loss on your investment property,

it can only be used against future residential investment property income.

And it'll be carried forward indefinitely.

So if you hold your property for long enough, the rent will rise over time and eventually it will turn cash positive.

And therefore you'll be able to consume those losses.

But it is a big deal.

So if you have a $500,000 property,

that's an annual cost of $4,000.

This is news breaking.

So if you're already got a property that's negatively geared, you get to keep your negative gearing.

And that's quite often a feature of tax changes that they keep the position the same for people who are already in it, so that- Sometimes they do.

Mostly.

I'm not quite sure why it's called grandfathering, but you get to keep the status quo.

Which would save you 68 cents in the dollar.

And I think the important clarification of that is that the income from holding it

is in a different bucket than the gain you make on selling it.

Yes.