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Job Mobility is discouraged, by current property legislation for those in negative equity.
There are thousands of people in negative equity and I do not believe that the issues we face have been adequately addressed by government to date.
The Tax legislation around landlords was designed more for landlords owning multiple properties and written during the boom years for those with “property empires”.
It has not been written to address the current climate of the negative equity mortgage holders that are left in “Limbo-land”, can’t move and are forced to rent their PPR.
Under current legislation if I take a new job in another county and rent my PPR, I have to give up my MIR, pay NPPR, pay tax on any rent above 75% of my mortgage interest & pay PRTB.
The Tax system on landlords is so unfavourable it is almost more financially beneficial for me to not take the new job, stay in my PPR, keep my MIR and sign on the dole.
This legislation being applicable for 2004 onwards First Time Buyers need urgently addressed, if the younger income earners are going to maintain any mobility in a diverse economy.
Unfortunately, I don’t believe it is on many TD’s radars, as the bulk are not likely in negative equity yet.
I am interested to hear from other property owners who are is negative equity, can’t sell, need to move and have to rent out their Primarily Principal Residence.
In effect becoming part of the growing “Reluctant Landlord Sector”.
Rob
There are thousands of people in negative equity and I do not believe that the issues we face have been adequately addressed by government to date.
The Tax legislation around landlords was designed more for landlords owning multiple properties and written during the boom years for those with “property empires”.
It has not been written to address the current climate of the negative equity mortgage holders that are left in “Limbo-land”, can’t move and are forced to rent their PPR.
Under current legislation if I take a new job in another county and rent my PPR, I have to give up my MIR, pay NPPR, pay tax on any rent above 75% of my mortgage interest & pay PRTB.
The Tax system on landlords is so unfavourable it is almost more financially beneficial for me to not take the new job, stay in my PPR, keep my MIR and sign on the dole.
This legislation being applicable for 2004 onwards First Time Buyers need urgently addressed, if the younger income earners are going to maintain any mobility in a diverse economy.
Unfortunately, I don’t believe it is on many TD’s radars, as the bulk are not likely in negative equity yet.
I am interested to hear from other property owners who are is negative equity, can’t sell, need to move and have to rent out their Primarily Principal Residence.
In effect becoming part of the growing “Reluctant Landlord Sector”.
Rob