So it looks like this elections main talking points will be focused on Housing affordability and Negative gearing.
Labour are proposing Negative gearing should be limited to just new houses, whilst Liberal are arguing it has to stay exactly the same or instability will insure.
My view point on how the Economy will react: Our economy is at record low interest rates in a effort to boost spending in the economy, however the main thing that gets effected is housing as it gets a massive boost in value every time interest rates go lower..
In a Economy where everything is stale yet housing affordability is getting harder and harder how is this possibly sustainable, if interest rates keep lowering combined with measures put in place to subsidize the economy into buying investment property that otherwise wouldn't be profitable, your creating a self inflicted one way economy based purely on housing and construction.
This will create a bubble that if explodes will do more and more damage to the economy the longer it goes.
By removing eligibility requirements on Negative gearing strictly to those that create supply via new housing you might go at least some way in the other direction of allowing our economy to not be solely based on one part of the economy.
From my view point as someone who is in their mid 20s looking to get into the property market but is struggling simply because housing affordability at this point in time is lower then any other point in history(so in simple terms, when it comes to the property market I am significantly poorer then anyone in my situation in the past when it comes to affording a property), it's difficult to accept, sure you can say demand has increased, however the supply is being restricted by investors who have had Welfare in the form of negative gearing tax breaks giving them the unfair market advantage.
As someone who is a believer of capitalism and or those who are a first home buyer the situation right now has been created by crony capitalism/Welfare for those who did already.
I don't think Labours plan even goes anywhere near enough to what would sort the situation out from an economy perspective and as an affordability perspective but given these two choices it's a no brainier for me atleast that Labours policy is superior.
and this is coming from someone who has never considered voting Labour in the past, however I am not happy that this is as far as the two parties will go to address the situation, they are still putting the economy at massive risk and are risking a recession not yet seen in Australia if this keeps going in the same direction.
Oh how badly does Australia need the election process changed so we can vote for who leads a party.
That just made my day.
