I thought the bulls on here were just thinking the renters were a bunch of financially uneducated,unsavy,simplistic idiots who are the gravey on their roast beef..
Negative gearing abolishment only fails if you don't stick with it for long enough. Every large impact on a sector or market needs time work out a rebalance, you can't do it for a year or two and see the negative impacts of it and run screaming backwards.
Let do apples and apples then shall we, which country in this world has a lack of rental accommodation or a lack of property investors because they don't have negative gearing?
Negative gearing is only good for speculation, tax evasion or minimisation. Abolishing it would create aperiod of lower rental stock but this will drive up rents to a level that would encourage investors looking for a positvely geared recurring income back into the market.
My guess is it will be done one day as both political parties wont have a choice as they would need the funds to pay for all their promises made to win elections. More likely to be done during an economic downturn than when there is a boom and a downturn is probably imminent if not already obvious.
The govt would have to prepare for it properly or possibly risk major banks collapses. As the banks will defintely be hurt..
