“Amy and Wes Rogers are 32-year-old parents of two young boys and the owners of four investment properties, one of which they are selling because they are frightened the government may abandon negative gearing on investment properties.”
This cry-poor article in the Australian newspaper about a family with four investment properties made me feel sick. Seriously, there are struggling Australian families that can’t even afford one drastically overpriced dwelling to house their own family, let alone four as investments, or five if you count their own house.
At least there is a little schadenfreude thrown in for good measure.
But the market is working against the Rogers. The house has been on the market for more than 180 days and, although there have been many viewers, there have been no real offers and the agent has already persuaded them to drop the price by $20,000 to $290,000.
“And now they want us to drop it by another $35,000,” she says. “This house we are trying to sell is tied to another in the way we financed it, and, if we sell Oakdale at this low price, the bank will require a valuation on the other property that’s tied in, and then, if negative gearing laws change, we believe it will drop the value of that second property.” If that happened, they would be left with the much higher original debt to service.
via whocrashedtheeconomy.com
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