Negative Gearing policy makes no sense
House prices are on the increase again particularly in Sydney, but moving north. Good news for investors but bad news for first home buyers.
In the Saturday morning rush to inspect low cost properties for sale, 9 out of 10 customers would be investors after purchasing on no deposit encouraged by the Federal Government’s negative gearing policy.
This is a policy which makes no sense. There is a serious housing shortage in Australia. Tax incentives should be used to encourage the building of new properties, not existing stock.
Housing shortages are a major factor in the comparatively high real estate prices in Australia.
If tax incentives were linked to only new properties, this would be a win win situation for everyone, particularly people on lower incomes.