Negative Gearing

Whatever your interest in the property market, it might be tempting to dismiss the latest political battle over whether negative gearing should be abolished. You might even view it as a good thing, if the outcome were to be that property prices go down.

But here’s the truth, plain and simple.

Economists say that if the planned changes to negative gearing do go ahead, property prices will fall, but not by enough to make it much easier to put together a 20% deposit on a first home. The fall in property prices will decrease the value of 18 million Australian’s super funds, while rents will rise by up to 10%. There’ll also be more Government revenue lost than saved, unemployment will rise and our whole economy will be in jeopardy.

Does that sound appealing?

It’s important that all Australians understand what’s really going on with this debate.

To find out more visit Negative Gearing Affects You for Frequently Asked Questions and information relevant to Buyers, Investors and Renters.