Vince Scully

Yeah.

Right.

It's a bit late on budget date.

But remember, if you've got a $500,000 property, this is potentially a $4,000 tax hit.

This is a big deal.

Oh, yeah.

And if you couple that with the treasury modelling that says house price is going to grow 2% less, the economics of buying a negative year property is now… Not as sexy as it used to be.

It sort of makes a knockdown rebuild a very attractive option, though, because you get the benefits of it.

Yeah, but you benefit about being in an established area.

Yeah, that's true.

Whereas if you otherwise want to buy a new – As an investment property.

Yeah, if you're buying an investment – if you want to invest in an investment property –

They do, but you don't have to go to the edge of town and you don't have to buy an off-the-plan apartment.

You can actually buy something in an established area and benefit that way.

So I'm going to deduct 6% for inflation?

Well, the greater of your marginal rate or 30%.

And from most practical purposes, if you're making a gain of that size, your marginal rate's more than 30% anyway.

Yeah.

Given that $45,000 gets you into the 32% range.

Yes, it could very well do because the general incentive today is to wait till your income drops.