Drawing from his direct experience in the market, mortgage broker and financial adviser Chris Bates and I discuss the latest issues and consider the impact of negative gearing reform.
Chris can be found at www.wealthful.com.au & www.theelephantintheroom.com.au plus via LinkedIn: https://www.linkedin.com/in/christopherbates
– My personal opinion is that by insisting on Negative Gearing (NG) reform Labor will continue to end up in the (policital) opposition after EVERY election. I support Labor because they want to bring about those highly needed fiscal reforms (NG & Capital Gains Tax Discount) but proposing those reforms now is political suicide for Labor. Too many investors/speculators have a financial interest in maintaining NG at the current level. Labor perhaps will pick up (a few) seats but it won’t be enough to regain power over the levers of government power. We saw that in the by-elections in VIC, the state elections in NSW and I fear it will happen again in the next national elections.
– Market forces (think: falling propert prices) will be powerful enough to reduce the (fiscal) impact of those 2 fiscal meaningless for the next few years.