I wonder if someone like Malaga, Sector or Acorn could help explain to me why there was a need for the Govt. to impliment a NRAS/program for affordable rental if Neg Gearing works to increase/meet demand new affordable rental dwellings..the answer to me seems obvious it either did little, or very little.
For me the NRAS was a patch for a hole in the bucket that the property industry lobby groups said they could cover by pouring sand into the bottom of the bucket..
Here is one reason i think Neg Gearing can be bad for supply..
Negative gearing helps to make it hard for or disadvantages a certain type of investor..the new mid and long-termers looking for positive cash flow from residential or the established ones looking to expand their portfolio..
and because new supply prices are pushed up as a result of increased speculative price rises the return needed to make a reasonable level of neg income instead of an overly large neg income is likely to lead to investors asking/seeking ever higher rents anyway so either way rents will usually track prices, and if it doesnt it eventually will..
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- overwhelming support to axe negative gearing
overwhelming support to axe negative gearing, page-141
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