Digital Finance Analytics (DFA) Blog
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From The Real Estate Conversation. Treasurer Scott Morrison has spoken of his commitment to home ownership as an achievable goals for Australians in a speech for the Australian Housing and Urban Research Institute today. He said the government is looking at new ways to help renters and fund affordable housing, but he said negative gearing will stay. … Continue reading “Affordable housing in, negative gearing stays, says Treasurer”
Last week we discussed data from our core market model on negative gearing, and using our segmentation demonstrated that some, and more wealthy segments, benefit the most. There is room to trim the excesses, without necessarily removing gearing overall. Today we look at another perspective, which supports this argument. We estimate that 61.7% of households … Continue reading “More On Negative Gearing Distribution – The Wealthy Benefit The Most”
From The Conversation. Treasurer Scott Morrison will renew his warnings against tampering with negative gearing, in a Monday speech urging more institutional investment in both rental residential real estate and affordable housing for low-income earners. As the government prepares its housing package for the May budget, Morrison will also seek to keep expectations realistic, saying … Continue reading “Morrison rejects pressure for negative gearing to be examined”
The argument trotted out to defend negative gearing from reform is that the bulk of investors are “typical mum and dad” households. Of course it depends on how you look at the data, but lets look at output from our core market model. What we have here is the relative VALUE distribution of investment property … Continue reading “Investor Property Footprints And Negative Gearing”
The AFR says Bankwest has changed its affordability calculators for investor loans, such that the tax benefits are now excluded from the assessment. This reduces the amount prospective investors can get in a loan, and it also may impact some existing customers. The post-tax affordability assessment explains why on one hand some banks have been … Continue reading “A Blow To The Negative Gearing Bonanza”
From The Real Estate Conversation. Should the government be incentivising investors to buy unlimited numbers of properties, while first-home buyers can’t get a foothold in the market? This is the debate that won’t go away, as house prices on the east coast ratchet higher, and the percentage of first-home buyers in the market languishes at historic lows. Investor demand, on the … Continue reading “Negative gearing: the debate that won’t go away”
From The Real Estate Conversation. NSW Planning Minister Rob Stokes has called for the federal government to change negative gearing arrangements to help ease Sydney’s housing affordability crisis. The comments come ahead of next week’s housing affordability meeting between state treasurers. The Prime Minister Malcolm Turnbull took a policy of preserving the current negative gearing arrangements to the federal election, and said on … Continue reading “Negative Gearing Debate Re-ignites”
From The Conversation. In the current housing tax debate a number of studies have come out arguing that while prices will fall (by varying amounts) rents will not be affected. That rents will be unaffected is surprising and (in my view) wrong. Outside of the heat of an election, the Henry Tax Review’s comprehensive review … Continue reading “Why rents will rise under Labor’s negative gearing proposal”
The ABC reported that “a Treasury document obtained by the ABC under Freedom of Information (FOI) shows most of the windfall from the property tax break goes to high-income earners. The modelling said more than half of the negative gearing tax benefits go to the top 20 per cent of incomes in Australia. “Negative gearing … Continue reading “The Negative Gearing Salvos Continue”
From The Conversation. Housing affordability and tax reform have shaped up to be two of the defining issues this election. The Property Council of Australia – which describes itself as “the Voice of Leadership” – has helped frame the debate on behalf of its 2200 company members. The council began as the Building Owners and … Continue reading “How the Property Council is shaping the debate around negative gearing, taxes”