Without property investors in the market, there won’t be enough stock of rental properties

People seem to have this weird idea that those houses will just be set on fire or something, instead of being bought at lower prices by people who want to live in them.

Purnell Real Estate principal Nick Purnell, who bought an apartment in Canberra as an investment property in 2020, said people will stop investing in property if negative gearing is abolished.

Don’t threaten me with a good time.
Investors, with their ability to outbid potential owner-occupiers are a significant component in the current rise in housing prices.
Those rising house prices are DIRECTLY related to the raising rent prices.

Negative gearing was implemented to achieve a change in the market, a large thumb on the scale by the government.
Now it’s time to step back and reassess the market and figure out what we need to do to achieve our desired outcomes.

Million dollar plus shoe boxes, whole suburbs dominated by short term rentals, people using the 15% equity on their 4 investment property to back a 5th in a giant house of cards gamble are NOT HELPING.

So this guy is paying $500/mo for this property over the income it generates and the only reason this works out is negative gearing? I have a hard time believing he’s not at least breaking even on rent charged over a mortgage, he’s not telling the whole story there, or he grossly overpaid for the property.

I will wait and see the policy… if they are grandfathering and limiting new investors to a single property, I don’t see who would be negatively impacted by any change

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alternative link.

FYI bpc-clone.