Via Goldman first:
The changes make property investing less attractive from a cash flow perspective, but negatively geared rental properties are already an unattractive asset from a cash flow perspective.
The impact of the lower capital gains discount is somewhat more important, but we note this only binds when price growth is positive. This means that, from an individual’s perspective, leveraged property investment will remain attractive if property prices are expected to rise and unattractive if prices are expected to remain flat/decline – regardless of the ALP’s proposed changes.
