Well, what i can see this ruling - if staying as it is and not overturned - gives a mums & dads investors an greater opportunity for tax-deductiuons for their properties, also the one that is used for living. When I say it is good for the economy Iam talking a short term solution. It will boost construction activity again. People will feel more confident that intrest rates stays put and maybe even being cut again, so in the next few months new hosing approvals will rise again after declining the last couple of months. Personally Iam against and would not do negative gearing in Australia. This ruling willl not change the future outlook for anybody who owns non-commercial real-estate. In the next 10-15 years when the baby-boom generation is starting to retire in the mass and they want to off-load their houses and find smaller and more convinient hosing there will be no buyers for those houses - supply willl exceed demand. The age structure and birth rate is a global problem and more needs to be done to encourage people to have childeren. Paid maturnity leave is in my opinion a one solution but it should not be finansed by the employer - it should be finansed by everybody (gov). It is for everybodys advantage to "produce" tax payers for the future. I know the paid maturnity leave is a hot issue and what I can "read" into a public opinion not very widely supported. But the population growth is a real problem and more needs to be done to solve it. It is a problem that will first show its teeth in the next 10 - 15 years. I know that easy solution and answer is "We just increase our immigration input to increase the population" but Iam not sure that is the answer...the population growth is a global, industrialised nations problem. If we fix our population growth by immigration we have to remember that out trading partners have the same problem in the future......domestic economy alone is not enough, we need someone to sell our products to. And us being resource produces and selling to global market creates a very real challange in the future....
