Don't cut negative gearing, urges expert

by Caroline Dann16 Aug 2012

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.

Related news:

Cut tax breaks for investors, says welfare group


  • by BONED 16/08/2012 9:57:40 AM

    Another case of tall poppy syndrome when it comes to ACOSS. This country seems to be thriving on that methodology in this period of time!

  • by GB 16/08/2012 9:58:02 AM

    neg gearing for new home builds only. these are the real "property investors" as they actually create something. Investors buying existing properties, pricing out owner occupiers then jacking up rents create nothing. Giving tax breaks to "investors" so they can out bid would be owner occupiers on existing homes should and will go. the sooner the better.

  • by Warwick 16/08/2012 10:30:04 AM

    Alternatively, taking away negative gearing for investors and making owner occupied interest tax deductible would create a more even spread of "wealth". This would also be an incentive to get new home owners into the market