I cant see the logic that people would go in wanting to negatively gear to reduce taxable income.
In my expirience as a reluctant landlord (rented out house when i had to relocate for covid), the first 12 months where my house was positively geared was far better for me than when the rental income didnt even cover the interest on the loan. Put it like this, if you have the option of 2 stocks, would you want them both to rise and pay tax on the gains, or one to rise and pay less tax on lesser gains? No brainer to me.
I do think allowing it only for new dwellings is sound policy, if the goal is house creation, but also think it will undoubtedly lead to hgiher rents (especially since the boom in rate rises). Not everyone can afford to lose money on property to offset tax.
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