Calls for negative gearing to be ‘curtailed’ for new investors in established housing

[@user-rf2el4gh5d]

Negative gearing should only apply to ONE property not multiple problem solved.

[@YTGhostCensorshipCanSuckMe]

This is not the issue. What the government is really trying to stop, is people using paper losses from depreciation, to shape the individuals personal income to zero. This is honestly a tax grab wrapped up in a different coloured ribbon. Negative gearing, ie, the ability to offset the expense of running an investment property, should simply be limited as an offset measure against the rental yield, and carried forward to when the final capital event is realised. What it should not be allowed to do, is spill over and operate as a deduction against the individuals personal income from other sources.

[@jonathanl50]

What if one investor buys a property for $500k and another investor buys one for $1.5m? Both have bought one property but the second person may have twice the investment potential.

[@1954-e8x]

As a home owner i don't wish for escalating house prices, no benefit for me or my children, because 'all' houses escalate. The only persons/institutes benefiting are , government, realestate agencies, banks, investors. Affordable shelter (housing) is an integral part for a happier society. If you care for a fairer and safer society get rid of negative gearing..

[@peterforsyth962]

100% correct..thanks for being a voice of common sense!!!!!

[@christopherdey2532]

Less hassel and better returns in the share market not to mention no overhead cost like insurance, rates damage etc or dealing with tennants. Also with shares you can access your money instantly.

[@scottcurtis5322]

If people can not negative housing investment, they will negative gear other assets. Main issues are as follows: A rapid increased in demand from immigration, supply could not ramp up as fast. The housing market is extremely distorted by local, state and federal government via regulations, planning, standards, subsidies, rebates, taxes . I say simplify it, ensure planning rules allow for builders to get land matched to demand. Then with no housing speciific taxes and subsidies let the market work. It will find a true equilibrium that allows participants to plan secure in the knowledge the rules will not change.

[@chillikoala]

We have a housing supply problem and we should be doing the complete opposite. Investors should be incentivised to provide more rental accommodation, not this. Meanwhile, the governments offer extremely generous subsidises for corporates including foreign companies for build to lease developments that will forever effectively remove land and stock from ALL Australians. The spotlight on negative gearing -- which ALL investors can do, not just property investors -- is a smokescreen, a diversion from the real issues ignored by successive governments, and that is supply. Boost the supply, support local builders (rather than having them go bust), incentivise the build of new social and affordable housing, and incentivise Australians to invest and provide rental accommodation to Australians who can't, may not want or may never be able to afford their own house.

[@danodco]

Yay nah. Investors have been incentivised up until this point and there is still a housing crisis. Pretty much says that private investors are a useless bunch who can't be relied upon

[@chillikoala]

@@danodco Property investors pay higher council rates, higher insurance, higher interest rates, amongst many other things. That's not incentivising mate. Yeh nah.

[@terrygardner6395]

Unlike the government who can be completely relied upon.

[@johnnykkkk]

what happen when Keating removed negative gearing years ago ??? rents ........skyrocketed !!! He then bought it back in ....

[@Jacobjosh17]

I think most economists and politicians should look at that!!

[@daleviker5884]

It was worse than that. The removal of neg gearing by Labor in 1985 stopped construction overnight, and 100,000 were thrown out of work. House prices soared, rents rose, and within 12 months Labor had to reverse their decision. It was too late to undo the damage, and Australia had its worst recession since the 1930s. Labor never learns.

[@petespike5000]

If you get rid of negative gearing, you have to completely get rid of capital gains.

[@daleviker5884]

Saul Eslake is not an impartial commentator. He is a leftwing economist and is the pin up boy of the Labor Party. I used to know him well in my business days, and he is consumed by ideology, not by common sense. His quote says "we desperately need to add to the supply of new housing" so his answer to that is to punish and restrict the source of that supply? Genius. Someone please tell Eslake that investors won't care two hoots if "new housing" comes with neg gearing because it cannot be passed on, and therefore has no value to an investor. Investors will simply abandon the housing sector and stop construction activity in its tracks, exactly as happened in 1985. Labor needs to find some intelligent thinkers, not ideological class warriors.

[@chillikoala]

Exactly! Well said.

[@krish19836]

We need to stop comparing economy to what it was decades ago when negative gearing was removed. The advancement in technology has made buying and selling houses like day trading. Neither the buyers agent , nor the owners form east coast have seen any of the properties in Perth they hoarded up .Most of them didn't even hit the market . Investors who are buying up existing properties are not doing anything to supply . In fact they keep first home buyers out and the rent is so high that renters will never have enough money to pay mortgage while new dwellings are getting built. The govt should remove negative gearing, bring rental cap and allow House rent allowance to renters who are paying for their first home being built

[@leestone7258]

We need to stop propping up the wealthy. If you own more than one home, you are wealthy. Get rid of negative gearing altogether.

[@davefoord1259]

Negative gearing means you are making a loss. Thats a fact. The only reason you negative gear is if you make a capital gain. The cgt concession of 50% is that reason. You can clearly see the date cgt concession came in on a graph of house prices and average wage.

[@bestestusername]

start looking for housemates renters your in trouble.

[@bestestusername]

@@InfinityIsland2203 off the books rentals will explode as you rent for cash and don't go through a real estate. It's big now in migrants communities where students can and do get taken advantage of

[@vmura]

so new investors? wtf very sick country accelerating wealth inequality

[@Larry-Livermore]

change the asset test to include primary residence over 2 million dollars and see what happens.

[@ashdivakaran9664]

If they do that I’ll double my asking rent or I’ll leave the house empty and use it as a holiday house.

[@vmura]

bad incentives design with unintended consequences

[@adamsangels9874]

I wonder if this guy had a few houses negatively geared would he be of the same opinion

[@steve-3140]

modelling a.k.a guesswork

[@davefoord1259]

Liar

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[@Peter-zv4dx]

So why do businesses claim against their loss? Same deal ✅✅✅✅✅

[@draghos3810]

Albo really is a one term government