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Experts predict effects of negative gearing removal

by Reporter7 minute read
The Adviser

A new survey by finder.com.au has revealed what some of Australia’s leading economists and experts believe would happen to housing affordability if negative gearing was abolished.

Of the 31 survey respondents – which included AMP chief economist Shane Oliver, Mortgage House CEO Ken Sayer and Domain chief economist Andrew Wilson – 65 per cent said eliminating negative gearing could result in a drop in property prices, with 23 per cent predicting a fall of more than 5 per cent.

However, when determining the effect of removing negative gearing on the overall housing market, 70 per cent said it would not trigger a market contraction, while a third said there was no housing bubble in Australia.

Thirty per cent of respondents said removing negative gearing could increase the likelihood of a significant market contraction or trigger a housing bubble collapse.

[Related: Negative gearing changes could see prices fall by 6%]

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