An Insight on Negative Gearing
Let me say at the outset that this post and the below articles are not about opposing a particular political party or ideology. This is about the effect of tampering with negative gearing by any party at any time and the effects that it will have on property values, employment and rents.
Many of you would not remember what happened in 1984/85 when the then Hawk and Keating government abolished negative gearing. However, in short the effect was so dramatic and frankly disastrous that after a very unstable and difficult period negative gearing was reintroduced in September 1987.
If you agree with the view that is a retrograde policy then we need to take a stand against this policy regardless of which political party is promoting it and make it very clear that we do not support it. I urge you to send this on to as many of your clients and friends as possible so that we can assist in the debate.
The Real Estate Institute of Australia has been instrumental in uniting real estate groups as part of a joint campaign to raise awareness about the consequences of the proposed changes.
Those involved include Coronis, Harcourts, Raine & Horne, McGrath, Ray White, Century 21, Richardson & Wrench, LJ Hooker, Barry Plant, Belle Property, Biggin & Scott, hockingstuart, First National, Laing+Simmons, RE/MAX, Buxton, Professionals, PRD Nationwide and Real Estate Agents Co-operative Ltd. The Industry website is at this address and is worth watching and forwarding to your friends, acquaintances, clients and colleagues.
Below are some links to give you more information on this issue:
Additionally, there is a more technical discussion of the issues at http://www.propertyobserver.com.au/forward-planning/advice-and-hot-topics/53247-negative-gearing-reform-has-chequered-recent-history.html
If you have any questions please do not hesitate to call me, Mike Stewart on 07 4688 2222.
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