Who is negative gearing helping?
As the election looms, negative gearing remains a hot topic. The real estate industry believes that Labor’s plan to restrict the tax benefit to new properties from July next year, will negatively impact on property prices and see rents rise.They argue a lack of supply is pushing house prices up rather than an inflationary effect from negative gearing. But who exactly is negative gearing benefiting in the first place?
Story features: David Bond, Lecturer in Accounting at the University of Technology Sydney.
Image: ‘Finger face with a question’ by Tsahi Levent-Levi on Flickr