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Get rid of negative gearing, its an artifact of the past that is being exploited by investors which keeps an artificial premium on property prices and is self perpetuating among self managed super funds. Greed is not good. It is keeping an entire generation of Australians from gettng their first home as wealthy older people use equity to build portfolios of properties far beyond what woukd be considered necessaar for a comfirtabke retirement.
A good interim solution would be to ban negative gearing for any investor that already has one investment property negatively geared - this will prevent cascading negatve gearing. They can keep the single negatively geaared property but lose an tax advanrage on subsequent properties.
There also needs to be a careful look at the rules that apply to self-manaded superfunds and their ability to borrow for investment purposes.
Last edited by glend; 07-11-2014 at 11:27 AM.
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