Here’s an interesting item (for Aussies): Report: Negative gearing is on the chopping block
SBS says the government is considering:
- grandfathering of arrangements for existing investors
- but limiting future access to negative gearing so only new properties will be eligible
According to the Grattan Institute:
- quarantining negative gearing losses would save the Budget around $4 billion per year initially, falling to a saving of around $2 billion per year over the longer-term
- It would also remove some speculative demand from the housing market
Also:
Reserve Bank of Australia (RBA) data clearly shows that the overwhelming majority of investors – almost 95% – buy pre-existing dwellings, not newly built dwellings, and that the proportion of investors buying new dwellings has fallen spectacularly since negative gearing was re-introduced in September 1987
Full article at the link
