Back to Negative Gearing, page-3

Lisping No politician can guarantee anything they are all fighting to keep their jobs so will claim anything.
Malaga thinks the following will happen.
Rents in most big Australian cities are tightening for a number of reasons
Investors have been under attack by the banks and Government with higher interest charges, more stringent conditions and rises in taxes.
The over supply in new buildings is mostly high rise units and houses in the far outer suburbs away from transport and facilities.
The fear of Government changes has stopped buyers both investors and home owners buying.
SO what is Labor going to do.
Scare Investors away, property investing goes in cycles and right now property returns are not worth the risk so stay away.
Encourage new builds and increase supply. Economics 101 supply and demand BUT who wants to live in F Baldivis or Hoppers Crossing.
The argument goes that if you take Investors out of the market then first home buyers will not be competing with Investors and can buy cheaper. Where maybe the poor first home buyers can buy all that new stock out in the boondocks and wait decades for any capital appreciation and then demand more services from the Governments eg a Train or a life.

If Labor get in and can get their policies thru then the world will not crash on day one as the doomer's predict
Construction will slow as New builds are the riskiest and offer the worst returns. Net job loss's
Investors buying established properties in middle suburbia will slow thus reducing supply of rentals Rents rise in these suburbs
Two tier markets will exist bit like Perth at moment where the inner blue chip areas like Wembley etc will hold prices whilst the far killing fields like Baldivis, Ellenbrook and Butler stagnate.
Lot of people stating that if rents go up then investors will return, not likely as no negative gearing and increases in Capital Gains Tax means Super or shares are a far better option.
Interesting times