At the end of the day, our national economy is underpinned by the property sector, and at the moment neither is doing overly well.
In fact, inflation hit zero recently, which is a concern for our nation’s financial future.
So, even if Labor was to win the election, let’s hope that they recognise the folly of their policy and at the very least delay until the market and economy are in better shape.
However, the very best outcome would be that the policy is shelved indefinitely because it was never a sound, or even necessary, proposal to begin with.
Negative gearing is merely a taxation deduction that is available for anyone who invests in income-producing assets.
With less than two weeks until the Federal Election, it is clear that Labor’s negative gearing policy will either make or break its chances of winning office.
Industry experts have always considered the policy to be based on incorrect modelling, which may cause significant damage to our economy at a time when it seems to be just treading water.
There has also been recent industry research showing that the policy won’t raise the expected billions of dollars in revenue nor will it impact only a “small proportion” of investors.
As well as the financial consequences, however, restricting negative gearing to new property will likely see the market flooded with spruikers.
Whenever you financially motivate people to buy a specific product, there will always be dodgy operators not far behind, keen to make money from the unwary and then disappear just as quickly.
It’s happened before and it will happen again.
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