I know that there's been talk of an end to negative gearing for many years (most recently in the lead up to the budget), but I think there's a very real possibility that it comes to pass for established dwellings in the near future.
I have been in email contact with Senator Nick Xenophon and he mentioned that he has a series of proposals on the way in the area of housing affordability. These proposals are likely resulting from his position on the committee for the 'Affordable Housing' Inquiry.
And in a recent open letter he hinted where one of those proposals might be targeted...
This is a hot topic and likely to get more politicised if prices in Australia's two largest capitals continue to rise, reducing affordability for those not yet in the market.
Also we have Abbott & Co who is looking to:
- Make budget savings
- Not appear to only be hitting the disadvantaged with cuts
- End the age of entitlement
I don't think there's been a more appropriate time to end negative gearing on established dwellings from a political perspective.
IMO watch this space over the next couple of months.
I have been in email contact with Senator Nick Xenophon and he mentioned that he has a series of proposals on the way in the area of housing affordability. These proposals are likely resulting from his position on the committee for the 'Affordable Housing' Inquiry.
And in a recent open letter he hinted where one of those proposals might be targeted...
http://www.adelaidenow.com.au/news/...rable-in-society/story-fni6unxq-1227036221219And while you are at it, why not tweak negative gearing to encourage affordable new housing. It?s crazy to have a blanket tax code that rewards debt over equity.
The Grattan Institute estimates that $2 billion could be saved if negative gearing was slowly phased out. In the interests of full disclosure, I should say that a phasing out of negative gearing would impact on me personally, given the four properties I own. But if it means a balanced budget and a more affordable housing market for young Australians to enter into, then that is a price I am very willing to pay.
This is a hot topic and likely to get more politicised if prices in Australia's two largest capitals continue to rise, reducing affordability for those not yet in the market.
Also we have Abbott & Co who is looking to:
- Make budget savings
- Not appear to only be hitting the disadvantaged with cuts
- End the age of entitlement
I don't think there's been a more appropriate time to end negative gearing on established dwellings from a political perspective.
IMO watch this space over the next couple of months.