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Touche, though guess it depends on whether those affected negatively outnumber those affected positively by the policy.

Well... looking less likely than at the time I started this thread given Abbott's recent comments. An article I wrote yesterday for anyone interested: http://www.bullionbaron.com/2015/04/the-politics-of-negative-gearing.html Though I suspect given most investors are negatively geared...

http://www.abc.net.au/7.30/content/2014/s4123289.htm

I doubt Somersoft is a representative cross-section of Australian property investors. What I meant by the post is that investors were buying a lot more newly constructed homes to rent out in the 1980s, buying homes that added to supply, mostly these days they buy established. So removal of...

Because housing construction wasn't keeping up with demand (especially in Sydney) and the removal of negative gearing was blamed. In this new proposal I expect is coming, Xenophon hints that NG would remain for newly constructed homes which would encourage investors to remain or increase in that...

Depends on whether I was holding for yield or capital growth. Investors leaving the property market doesn't reduce the existing pool of homes.

I would expect returns to improve via rents increasing over time (though wouldn't expect an immediate jump as a result) while prices rise at a slower pace or fall, improving yields. Some investors may choose to continue with negative gearing on newly built homes if the proposal from Xenophon is...

:eek: What? They're all leaving and taking their houses with them? Seriously...

Just because a landlords costs rise doesn't mean that the rental market can automatically pickup the slack with an increase to rents. You wouldn't necessarily "miss out", it would just be claimed against future profit from property (assuming you held it long enough to get there). That may...

I think you are overstating it's importance. There are likely far more renters with aspirations to be an owner (votes to win) than negatively geared investors (votes to lose). Especially with interest rates as low as they are, many who were negatively geared a couple of years ago may not be...

IMO there is a greater focus coming on housing affordability (you and I agreeing on whether it's affordable or not is beside the point), that along with Abbott looking for budget savings will provide the perfect political climate to see negative gearing changed. That's what I think we'll see...

All generations are hooked on entitlements of various kinds. I didn't start the thread for another argument over whether housing is affordable or not (which has been done to death here). I'm simply pointing out that a proposal for changes to negative gearing is likely forthcoming from Xenophon...

I agree that grandfathering would be the most likely way forward, but in the article Xenophon talks about the personal impact given his ownership of 4 properties. Not sure whether he just threw that in there for non-factual self promotion or whether his proposal might actually affect current...

I didn't say that. Did you even read the post? There are a series of proposals on the way, IMO removal of NG for established dwellings will be one put forward and is more likely to be passed now than anytime in recent history.

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...