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Negative gearing changes won't drive all investors from the housing market here's why

The Grattan Institute's Danielle Wood and John Daley write in The Conversation (8.3.16) about proposed changes to negative gearing and what these would mean for the housing market.

'After Labor announced proposed changes to negative gearing and the capital gains tax discount, Prime Minister Malcolm Turnbull told parliament that the policy would "administer two contradictory shocks, massive shocks, to the residential housing market. They are proposing to remove from the market for established dwellings one-third of demand. All investors would be gone. When I say all investors, I mean all investors."

'That assertion was questioned by some listeners at the time, including The Guardian’s Katharine Murphy. Does the prime minister’s claim stack up?'

 

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