Negative Gearing policy intent??
I've heard a lot said in the media that the Coalition have no evidence upon which to base their claims that house prices will fall under the ALP's negative gearing policy. I've also heard numerous experts suggest that it now takes the average punter 6 to 8 times their take home annual wage to buy the average first home.
So lets say the ALP are elected and implement their policy. Can someone explain to me how it will have any effect on the opportunity for the average couple/family to buy a home if prices don't fall?
I get that it is intended to drive investors from the market for existing homes, but if demand falls significantly, so will prices.
It strikes me that the policy is intended to drive prices down otherwise it will be ineffective. So why the criticism of the Coalition's argument that house prices will fall and why are the ALP saying they won't?
Unnecessary disclaimer…….I don't have negatively geared property…..