Five reasons to allow negative gearing
The Labor Party want to stop negative gearing.
But Scott Haywood from TheFinanceGuru.com.au doesn’t think they will stop there.
‘If they change gearing, they’ll also change borrowing to invest in shares, in margin lending, and in buying another business,’ he told Tom Elliott on Thursday.
Scott predicted five drawbacks to scrapping negative gearing:
- Rent will go up by 10-15%
- New home building will shrink by 5-10%
- Up to 200,000 fewer jobs will be created over ten years
- Up to 100,000 more households will be pushed into housing rental stress
- Confidence in our ability to borrow to invest will be dented
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