Banning negative gearing will force you to become a better property investor

Investopoly · Jan 23, 2019 · 15m

If the ALP wins the election in May and ban negative gearing on established property (as proposed), does that mean property is no longer a good asset class to invest in? The answer is no, if you do it right. In an environment of no negative gearing, capital growth becomes even more important.The razzle dazzle of tax savings is too tempting for some people to ignoreToo many people have been seduced by tax benefits when selecting a property investment. Potential tax savings distract investors’ attention away from an asset’s poor quality (lack of fundamentals). The problem is that you have to…