the adviser logo

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%]

Read the latest issue of The Adviser magazine!
The Adviser is the number one magazine for Australia's finance and mortgage brokers. The publications delivers news, analysis, business intelligence, sales and marketing strategies, research and key target reports to an audience of professional mortgage and finance brokers
Read more