Binning negative gearing will lead to house price falls

by |

 

Abolishing negative gearing tax concessions will result in a drop in house prices, economists have predicted.

According to a recent survey by comparison site finder.com.au, almost two thirds (65%) of economists and analysts believe that eliminating negative gearing could result in a drop in property prices.

Almost a quarter of those surveyed (23%) said it could potentially lead to a substnatial drop in house prices, of over 5%.

When looking at the effect of removing negative gearing on the market overall, almost a third (30%) said it could increase the likelihood of a "significant" market contraction, triggering the pop of a “housing bubble”. 

The remaining 70% of economists said it would not trigger a market contraction. A third (33%) said there was no housing bubble in the Australian market.

WP forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions