Will Negative Gearing rules be changed

[jingo]

urban myth... never happened.

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Do you have proof of this? Sources?? I seem to remember reading in Jan Somer's books that there was increased demand for rental properties and rents rose accordingly.

 

[geoffw]

Do you have proof of this? Sources??

There's been one source quoted in this thread already.

Negative gearing was not abolished, but it was quarantined. Expenses could only be claimed against rental income.

 

[keithj]

Rental prices increased immediately and there was a massive shortage of investment properties and a rental crisis.

The government had no choice but to re-introduce negative gearing again

urban myth... never happened.

The bit about reintroducing it isn't an urban myth. The govt of the day (who had all the facts to hand) had such a strong belief that its' reintroduction would fix the rental problem that it did so. Subsequently, the rental market regained an equilibrium, which it has maintained since then.

 

[Rixter]

The bit about reintroducing it isn't an urban myth. The govt of the day (who had all the facts to hand) had such a strong belief that its' reintroduction would fix the rental problem that it did so. Subsequently, the rental market regained an equilibrium, which it has maintained since then.

Exactly Keith....also not only did they reintroduce it, they increased depreciation allowances further to entice investors back into play.