Negative gearing reform to hit house prices hard

Tuesday, 12 June 2018

This is about right, at the AFR:

Sydney and Melbourne’s already faltering house prices are set to slide by another 9 per cent under Labor’s planned property tax changes which would be the equivalent of borrowing costs rising by more than 20 per cent.

A detailed study of how the reforms would affect 84 local government areas by property consultants RiskWise Property Research and Wargent Advisory suggests the impacts would vary markedly around the country.

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.