As read in the Australian Broker

Abolishing negative gearing tax concessions will result in a drop in house prices, economists have predicted.

According to a recent survey by comparison site finder.com.au, almost two thirds (65%) of economists and analysts believe that eliminating negative gearing could result in a drop in property prices.

Almost a quarter of those surveyed (23%) said it could potentially lead to a substnatial drop in house prices, of over 5%.

When looking at the effect of removing negative gearing on the market overall, almost a third (30%) said it could increase the likelihood of a “significant” market contraction, triggering the pop of a “housing bubble”.

The remaining 70% of economists said it would not trigger a market contraction. A third (33%) said there was no housing bubble in the Australian market.

John can be contacted on 0749722081 or 0410433919. or email him at jwhitten@ihl.net.au or net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237).