overwhelming support to axe negative gearing, page-69

Great debate people.

I've worked in the real estate industry for nearly 20 years now and I'm firmly in the "property is too expensive" camp. For many years now investors have put capital gains and negative gearing first before they even consider the rental returns. They still dive in with gross rental returns between 3-4% pa. Less than what you can earn in the bank. All because of past capital gains and the ability to negative gear. This in my view has to change.

High property prices only benefit the banks and the government, oh and property speculators.

Young couples in debt up to their eyeballs to own a home in an outer with no public transport relying on cars to get to work. Women forced back into the workforce after having kids and having to put the kids in childcare. Alot of them barely earn enough money to pay childcare let alone contribute to the mortgage. If you buy an old home in a city closer to the suburbs most people have trouble just paying the mortgage let alone renovating.

I worked with an Australian girl who moved to the US in her early 20's and married an American. They moved back to Australia for a better lifestyle. They both worked in professional roles here in Australia battling with 2 kids in childcare. They rented for the few years that they were here and in the end decided that they just couldn't afford a decent home in a reasonable suburb here in Australia. They moved back to the States and nearly immediatley bought a beautiful home in Atlanta for just over $400k. She no longer has to work and can look after the kids. They're very happy with they're decision. Sad reflection on Australia in my view.