Labor’s policies through negative gearing changes are going to cut existing property values.
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The fact is, residential housing represents the single biggest asset class in Australia.
By far the majority of those who negative gear properties are middle- income Australians.
Around two thirds of those (850,000) who declared a net rental loss in 2012/13 had a taxable income of $80,000 or less.
The consequence of it will be a decline in property values: every home owner in Australia has a lot to fear from Opposition Leader Mr Shorten.
If you take a third of the buyers out of the residential property market, there is only going to be one consequence – values will drop.
The accounting and economics analyst, BIS Shrapnel, has modelled and demonstrated that, with a great deal of thoroughness.
The vast bulk of Australians who use negative gearing are just trying to get ahead and they are backing the Coalition for these efforts, not raising their taxes or limiting their opportunities.
Peter Mason
ARMIDALE
