Apr 6 2011, 11:29 PM
QUOTE(kh8668 @ Apr 6 2011, 10:13 PM)
bro/sis...rpgt if going back to original 30%....if your net earning before tax = 100K, after tax still got 70k la..
check out the RPGT calculation, then you will know more.
and investors should know what they are buying and with their own objectives...not to worry whether they buy or not buy, how much they make or not make, got incentive or less incentive..lol
You are correct in terms of tax computation, but with each subsequent buyer you'll be running up against the law of diminishing return, because the next buyer has to keep in mind 2 things (a) lower LTV (thus his ROI is lower), and (b) a 30% RPGT on his earnings, so it affects whether it's still worth it to buy.check out the RPGT calculation, then you will know more.
and investors should know what they are buying and with their own objectives...not to worry whether they buy or not buy, how much they make or not make, got incentive or less incentive..lol
The population of buyers out there is a bell curve, and by having RPGT and lower LTV, it shifts the breakeven line higher, thus reducing demand.
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