I too am a little nervous regarding the results to be released in a few hours time. I am hopeful if not confident that this will mark a turning point for long suffering shareholders like me.
A couple of thoughts on negative gearing. By its nature, a negatively geared property will eventually become positively geared and tax will be payable at that point. Capital gains will also need to be paid when the propert is sold. In many ways, negative gearing is a way of deferring tax rather than avoiding it altogether.
Negative gearing is also often used by people (like me) who have moved from “home” chasing employment. Often, the move is seen as being temporary with the intention of moving back home some years down the track. Again it is often the case that you will rent a house in the “temporary” location as you will not want to buy a property you might need to sell in a few years. You are intending to get back home eventually but are concerned that property values will run away from you. So you buy a property in your “home” location so you can be in the market when you eventually return there. Although negative gearing may be a factor it often isn’t (and it never should) be the sole factor in buying a property.
Go Telstra!
TLS Price at posting:
$3.21 Sentiment: Buy Disclosure: Held
(20min delay)
