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Scrapping negative gearing is not the answer, says lender

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Australian Broker | 01 Apr 2015, 08:21 AM Agree 0
Negative gearing requires crucial reform to help first homebuyers, according to a South Australian lender, but abolishing it is not the answer
  • Bottom Line | 01 Apr 2015, 10:18 AM Agree 0
    Ridiculous. Any watering down will cripple the only industry that's keeping us out of recession - the building industry.
    Suddenly few houses will be available & governments will need to 'levy' to raise money to build their own housing - which they cant afford.

    Abolish Stamp Duty for all first home buyers, or require them to only have a 2% deposit, would get the result without crippling the economy.

    Govt could back the loans, rather than incur Genworth or QBE... etc.
  • Melbournian | 01 Apr 2015, 11:35 AM Agree 0
    Support only abolish NG on existing home, but keeping NG for new or off-plan homes. It will create jobs, as well as provide additional house supplies
  • Steve | 01 Apr 2015, 07:10 PM Agree 0
    “Research has shown that start-up costs are one of the biggest barriers to home ownership. It is very difficult for a first homebuyer to compete in a market against investors who have significant backing in the form of assets and equity.”

    Removing or altering negative gearing will not change the amount of start up costs that are a barrier to home ownership. Negative gearing only helps an investor with servicing the running costs of the investment, which is no different to what is available with other investments or business.
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