Negative Gearing - The Good, The Bad & The Ugly

Over my lifetime of Real Estate, which is close to 40 years now, in the Sydney Real Estate Market I believe that Negative Gearing has a huge impact and effectiveness on producing rental properties.

 

It is a very real issue that there are just not enough rental properties being created for the demand. Sydney is the biggest city in Australia with the largest population, approximately 25 million, and since 1993 there has just not been enough rental properties available nor enough new housing built to meet the demand for the population.

 

It is also important to understand that Public housing Sector has failed and both the Federal and State governments are continuing to fail to address this serious issue.

 

There is just not enough funding and from my opinion the Public Sector are unable to make a quick decision.

 

Negative gearing has enabled high-income earners the opportunity to invest in real estate and provide rental accommodation. Surely this is a positive for a demanding rental property market.

 

The tax incentives for this higher income bracket surely is an offset for the government (federal) spending on a similar property.

 

To consider forgoing Negative gearing is a political motive, our Tax system is cumbersome and there have been other suggestions such as increase in GST however I believe the Federal Government should look at more private tax incentives to build public housing. This would benefit all.

 

 

 

 

 

DISCLAIMER

 

 

The information in this article is of a general nature. While care has been taken preparing this information Kathryn Hall Real Estate does not warrant, represent or guarantee the accuracy, adequacy, completeness or fitness for any other purpose that the article may be used. Kathryn Hall Real Estate accepts no liability for any loss or damage (whether caused by negligence or not) resulting from use of information.

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Negative Gearing - The Good, The Bad & The Ugly