From Gotti today:
The biggest single difference between the parties is that the ALP plans to restrict negative gearing to new buildings. At the moment we have a rush of negative gearing purchases of existing apartments and houses — almost as though people are getting set before it’s too late.
Shorten becomes PM, then when they come to sell, the buyers will have to be genuine homeowners because there can be no negative gearing on existing houses. All other things being equal the price of dwellings in many areas will fall.
On current ALP policy, assets purchased after July this year will lose a good part of their capital gains advantage. That date was set last year for the election so it may change. But the capital gains measures are still on the ALP’s website, so, if you are planning on making an investment, do it before July this year, just to be on the safe side.
But again people who buy the asset you have purchased will have an inflated capital gains tax bill and so may drop the price that they are prepared to pay.
No shit, Sherlock! And it is likely to come with some other problems as well:
- falling immigration;
- and, as the next global shock arrives, no more rate cuts plus fiscal rectitude preventing stimulus.
For anyone that sees property as an investment, it has “sell” written all over it.
