I was wondering what people's views are of how both the liberal party and Labour party are promoting their views on negative gearing.
What are your feelings towards what should happen with it?
I'm uncertain what their plans exactly are but looks like they won't be getting rid of it. I agree they shouldn't get rid of it, however the way he's talking to the media about it is scaremongering.
I don't like how they talk about property investors all being created equal and harping on about those with 5 and 6 investment properties. Their plans to reduce to also reduce the discount from capital gains also gets my back up.
Yes I have an investment property so no I don't agree with eliminating it all together. Why? Not just my own selfish reasons, yes it benefits me greatly, so does the capital gains discount but also, while I don't agree it will cause the market to crash and sellers will lose money, I think investors will continue to buy properties but they will just charge higher rents which doesn't help long term renters or those renting while they save for a house deposit which is another reason.
My solution, keep negative gearing for those with 1-2 investment properties, then slowly reduce the benefit of negative getting the more properties you have. That way the government can save money by refunding less come tax time to investors, but it won't be reduced by enough that small time investors don't need to raise their rents too much to cover their reduced financial benefit.