Hi Ric,
We get loads more deductions on rental investment property here in Oz than we did in the UK (can't compare with the USA).
You get a first home owners grant of $7000 to help you get started if you are a permanent resident (even if you've got rental property but not owned your own home) as long as you stay in your first home for at least 6 months. See the link in the "PLEASE READ...." sticky post for more info.
I've never heard Americans called Amis so I'm not sure where Bev got that from.
Yes negative gearing is popular here but it depends on whether you are a 'serious' investor or not. You can only buy so many properties when you are paying out for them every month - something I have tried to explain to real estate agents and developers alike. Some properties can be cash flow positive and turned negative when the accounts are drawn up. We had investment properties before we came to Australia and now we have large amount of tax credits so it will be interesting to see how much tax we pay (if any) when we do this years tax returns.
Regards,
Karen
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