Malcolm Turnbull Puts Negative Gearing Changes Off The Table
The negative gearing debate never cools down. The Malcolm Turnbull coalition, though, has managed to put it off the table as it looks forward to firming up economic policies prior to the election. The focus will be on household wealth and property values instead of capital gains tax and negative gearing, said the spokesman for the coalition.
No proposed changes to the negative gearing arrangement
While there was speculation about possible changes to the tax arrangements, especially when it came to high income-earners, the government decided to go with the existing arrangements and not disturb the status quo.
Quite out of line with what the coalition treasurer had spoken about sometime ago
Remember how the coalition’s treasurer had spoken before about doing away with the excesses of negative gearing? Mr. Scott Morrison back then was talking about keeping an eye on the number of properties that could be geared negatively and the value of dollar that could be deducted. This, however, is already in the past and we know enough about politics to understand that only the present matters.
Turnbull faces resistance from within his own party
And in the present, Turnbull’s coalition finds Labor’s proposal on negative gearing outright shocking. After having found resistance from within his own party, Turnbull has decided to keep away from making any changes to gearing. The agenda this time around is “property prices” and the election propaganda will be set accordingly.
It is not that the Prime Minister will not be facing any criticism. For the record, he already is. Critics are accusing him of intending to give a tax break to investors buying their 10th or 11th property but clearly at the cost of keeping first home buyers away from the property market.
Negative gearing a blessing for those investors seeking capital growth
It is quite true that the negative gearing debate never loses steam! There will always be those who seek rental yield and positive cash flow and then there will be those investors who eye capital growth (and want negative gearing to stay) above anything else.
Great deals still available in “a market where property prices are supposed to be a threat”
One thing remains true amidst all the negative gearing debate. Whichever kind of property you seek, you will need a seasoned buyer’s agent to get you the best deal: superb location, great property and a well-negotiated price. Speculation is rife that the property market has run its course, or that the prices are so high that Mr. Turnbull has to make property prices his election agenda.
The truth, however, is that there are still handsome deals open for all of us. You just to need to probe well into them. If you are looking for a terrific property at a reasonable price, don’t hesitate to give me a call today. I will be more than glad to assist.