Hi wiskers If you go back through my previous posts, you will note that I've never owned an investment property, and I'm not a believer in negative gearing. Any money I've made from RE has been through restoring rundown residential homes and farms - hands on while I lived in them with the majority of work done with my own hands. I'd put it to you that the greatest distortion of RE prices over the last 3/4 years has been a result of Covid and the market forces that resulted from it - still in motion. In addition, the high rate of immigration. One way or another this has all led to a massive supply deficit, which has triggered high demand (economics 101). So, even if in the unlikely event that the government attached a tax to the PPR I doubt it would make much difference, given the lack of supply. I can't see folks selling up if a tax was introduced because they still need to live somewhere, which might necessitate buying a cheaper home with all the costs involved. And thereby creating a rush to more affordable homes, which would in turn cause a price escalation in that bracket, so counterintuitive.
Ultimately, the only real solution is to build enough homes to fill the gap, but that is problematic, at least in the near term, given the massive housing deficit.
