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Thursday, September 25, 2003

Magic? House swapping: a solution for would-be-buyers

Australia's property boom means prices are growing faster than people can save leaving many house-hunters looking for any leg-up they can get to enter the market. A potential solution, known as house swapping, allows would-be-buyers the opportunity to use the tax system to their advantage.
Investor costs are also $18,000, minus $12,000 in rent. But because of negative gearing, those costs are tax deductible, meaning the real figure is just $3000.
Just take a look at the difference, Claire is up for $12,000 while the investor is up for $3000 to own exactly the same property..

· Logic Prevails? [Current Affairs]