A property investment expert is urging the government not to cut negative gearing, after welfare group ACOSS asked for it to be cut.
Earlier this week, ACOSS told journalists it was advising the government to consider the cuts to tackle rising homelessness.
Paul Bieg, director of Big Property Investments, told Australian Broker Online ACOSS' assertions were misguided.
"I feel they should seek further advice on this ‘idea’ as in my opinion, removing negative gearing would actually make the rising poverty and homeless numbers worse, not better," he said.
"Property values and rentals are based on supply and demand: always have been, always will."
"Removing one of the main incentives to purchase will result in less sales and construction. Australia already has a housing shortage so making it worse will not have the affect the ACOSS is looking for."
"Less sales and construction also means less work for Australians," he said.
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