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The Forum > Article Comments > Exacerbating Australia's housing shortage > Comments

Exacerbating Australia's housing shortage : Comments

By Marise Payne, published 1/10/2010

Labor's cash splash didn't save the country but it did inflate house prices.

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That's exactly the point, thanks to negative gearing, investors can afford to pay much more for real estate, keeping first home buyers out of the market. And FHB grants just inflate the market further, without improving housing affordability at all.

Of course, it's political suicide for Labor or the Coalition to suggest phasing out negative gearing, so it will never happen.
Posted by TrashcanMan, Monday, 4 October 2010 9:45:05 AM
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