Well, I think the criticism of negative gearing on economic rationality grounds is sheer poppycock.
Opposition to negative gearing investment property is driven by and rooted in a socio-political critique. Basically, it's part of the "eat the rich" crypto-Troskyite agenda.
Finally though we have a critic of negative gearing who has had the honesty to spill the real beans.
The truth of the matter according to Catherine Cashmore is -
1. Everybody deserves their own home (It's a "natural human ... need")
2. This means the government should cut negative gearing to force house prices to fall
3. And other "policy change" should also be introduced to "create new models of ownership"
4. So first home buyers can buy in the inner zones to meets their 'wants'
5. And property investors buy only on the outer margins despite no prospect of capital gains
Rollicking bonkers, eh? And what's more, this crazy cracker is a senior consultant for a national buyers agency!!!
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Perhaps she could recomend low or zero interest rates for first home buyers as well.
So these new homebuyers, would they be ok with buying a property which will not go up in value? Why would you buy then , just rent.