Will loss-making investors bail on property?

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By Leith van Onselen

Yesterday, it was revealed that the Australian Treasury had sounded the property alarm, warning the federal government that negatively geared investors could start dumping properties, exacerbating the bust:

“Where around two-thirds of housing investors are negatively geared, these investments are implicitly predicated on expectations of capital gain in the future”…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.