Your Investment Property forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Should negative gearing be abolished?

Notify me of new replies via email
Your Investment Property | 15 Jan 2018, 12:00 AM Agree 0
The preliminary results to a new study suggests abandoning the practice could lift homeownership rates
  • Peter Giannos | 15 Jan 2018, 02:05 PM Agree 0
    What about the decrease in employment in construction and everything that surrounds it when developers can no longer negatively gear? Investor sentiment would drop and so would investor spending. Those identified in the study as being on the fringe of affordability could benefit from a price drop of course! But what happens when a huge percentage of the population lose their jobs because construction slows down.

    Wonder if the study goes in to thay depth of economic disruption. If they don't then the percentages suggested above are WAY off..
  • M Hailu | 15 Jan 2018, 03:01 PM Agree 0
    Personally, i support the idea of opening more opportunity to those who can not afford to put their leg into their first home.
    This, however, is an immediate emotional response to the question. Many assume through negative gearing investors are pouring in cash money, it is wrong. The opportunity opened by the investor to the economy overpasses the profit obtained through negative gearing.

    I have tested as being an investor, my experience is the negative gearing encourages the middle income working families to invest in medium-sized property with a little advantage of the negative geared tax return ad more of hoping from the capital gain in the future.

    By the way, one way of encouraging hard working families is through such incentives. In countries with no negative gearing, usually, middle-income families will never think of buying a house.

    Abolishing negative gearing, even raising the issues of abolishing it results in pushing many middle-income potential investors to corner, while it will not affect much for the first homeowners. I am a banker or finance person but i see this will affect a lot to the economy.

  • | 15 Jan 2018, 06:58 PM Agree 0
    What utter bull crap is this Your Investment Property story and the Reserve Bank response. What incompetent imbeciles we have as public servants.
    The last time negative gearing was abolished, the real estate market tanked badly -home investor buyers were non existent. I was a realtor then, so I know the true facts.
    Three months later,a law was passed to restore negative gearing. Bob Hawke was the then PM.
    Private landlords provide an essential service to communities by providing available housing, as governments cannot afford the enormous expense.
    Abolition of negative gearing, even for 6 months, would cause a drastic fall in real estate values and rents would rise alarmingly.
  • Don | 15 Jan 2018, 07:42 PM Agree 0
    Absolutely. This is a policy that hugely distorts investing, crippling productive opportunities.
  • Jay | 19 Jan 2018, 10:24 AM Agree 0
    Considering that Australia still faces a minim of a $300 billion infrastructure deficit I believe, negative gearing has a greater benefit to support investment and the communities built around it than harm.
Post a reply