Chris Brycki

Founder and CEO of Stockspot, Australia’s first and largest digital investment adviser

[Chris Brycki @chrisbrycki]

What if I told you the government could now tax you at more than 100% of your real investment gains? It sounds absurd, but that's exactly what can happen. In this video I explain how it can happen, why it's an unintended consequence of the new capital gains tax, and the steps investors can take to reduce the impact.
If you own shares or ETFs, this is something you need to understand.

[Chris Brycki @chrisbrycki]

@AvidCommentator What about relative to house prices?

[Chris Brycki @chrisbrycki]

No surprise that rents are heading up, and they’re likely to keep climbing. It’s exactly what happened in NZ when they stopped negative gearing.

Young Australians will be the ones who pay the price, with saving for a home becoming even harder. This outcome was entirely predictable, yet the government ignored all the warnings!

https://t.co/hP0W2c02hp

[Chris Brycki @chrisbrycki]

Even if the majority of rental properties are grandfathered, rents are determined at the margin. Rental markets are highly sensitive to incremental changes in supply and demand. If fewer investors add new rental properties, even a small reduction in supply can put upward pressure on rents.

[Chris Brycki @chrisbrycki]

@10footinvestor Thanks 🙏 enjoy reading your stuff too.

[Chris Brycki @chrisbrycki]

If house prices fall 5% but rents rise 5% the deposit required on a $1m home falls by $10,000. But if it takes you five years to save, you’ve paid about $9,000 extra in rent, while saving less each month. Lower house prices don’t automatically make it easier to buy at all. The govt has been disingenuous by not explaining the likely impact on rents to younger people.

[Chris Brycki @chrisbrycki]

You’re arguing against a point I never made. House prices may well fall. My point is that the policy won’t necessarily make it easier for young Aussies to buy. If rents rise at the same time, saving a deposit becomes harder. That trade off was entirely predictable. Young Australians are being sold a solution that may leave them no better off.

[Chris Brycki @chrisbrycki]

Potentially. Sean, imagine house prices fall 5%, but rents rise 5%. The deposit required on a $1m home falls by $10,000. But if it takes you five years to save, you’ve paid about $9,000 extra in rent, while saving less each month. Lower house prices don’t automatically make it easier to buy.

[Chris Brycki @chrisbrycki]

You’re conflating two different effects. Negative gearing increases investor demand, which pushes up house prices. Removing it reduces that demand, but it also reduces the incentive to invest in rental housing. Buying affordability and renting affordability aren’t the same thing. You can end up with lower house prices but higher rents, leaving first home buyers no better off because saving a deposit becomes even harder.

[Chris Brycki @chrisbrycki]

@tompanos Unfortunately the disaster has only just begun for younger Australians saving up.

[Chris Brycki @chrisbrycki]

No surprise that rents are heading up, and they’re likely to keep climbing. It’s exactly what happened in NZ when they stopped negative gearing.

Young Australians will be the ones who pay the price, with saving for a home becoming even harder. This outcome was entirely predictable, yet the government ignored all the warnings!

https://t.co/hP0W2c02hp

[Chris Brycki @chrisbrycki]

@toy59496 @ausnotes Entirely predictable.

[Chris Brycki @chrisbrycki]

No surprise that rents are heading up, and they’re likely to keep climbing. It’s exactly what happened in NZ when they stopped negative gearing.

Young Australians will be the ones who pay the price, with saving for a home becoming even harder. This outcome was entirely predictable, yet the government ignored all the warnings!

https://t.co/hP0W2c02hp

[Chris Brycki @chrisbrycki]

@Pom_Bazooka @jgrogan222 And how exactly are they expected to save for a deposit with rising rents and higher taxes on other investments?

[Chris Brycki @chrisbrycki]

No surprise that rents are heading up, and they’re likely to keep climbing. It’s exactly what happened in NZ when they stopped negative gearing.

Young Australians will be the ones who pay the price, with saving for a home becoming even harder. This outcome was entirely predictable, yet the government ignored all the warnings!

https://t.co/hP0W2c02hp

[Chris Brycki @chrisbrycki]

@rschitchat @mraghav Exactly

[Chris Brycki @chrisbrycki]

I've explained why the new CGT rules are deeply flawed and could be a wrecking ball for the economy. But now the legislation has passed, it's time to be practical. In this video I explain five completely legal ways investors can reduce the impact of the new capital gains tax.

[Chris Brycki @chrisbrycki]

@rschitchat Clever!

[Chris Brycki @chrisbrycki]

@petergreeff Watch out for the next video!

[Chris Brycki @chrisbrycki]

@JemWarne It’s truly sad!

[Chris Brycki @chrisbrycki]

@graphain Creative!

[Chris Brycki @chrisbrycki]

@XavierSeton We’ll keep up the fight as well 💪

[Chris Brycki @chrisbrycki]

@THX_PK Yes that would be a valid 6th option!