Negative Gearing Explained | Greg Jericho on the Project

Simple answer is You can have only one property to negative gear. That will help the small investor as well as the renters as well as new home buyers.

The project sucks, as if those bastards dont have multiple properties they negative gear.

I’m voting for whatever party vows to scrap this. The end.

Fun fact: negative gearing as originally conceived was to encourage private investors to build new houses to help offset the Federal government's impending reduction in funding new housing stock. Today, only 3% of negatively geared properties are greenfield investments, the other 97% are tax write offs on existing housing. It's rare to be able to calculate a policy failure so accurately but there you have it: negative gearing as a policy has only been 3% successful. There is no rational measure to justify its existence in its present form. It only distorts the housing market and exacerbates the divide between the rich and the rest of us.

the average income of negative gearers is $60k because that's what's left of their taxable salary after they've negative geared! That's the whole point, to make your $100k salary look like $60k by deducting $40k in interest payments. Business owners can't offset their salary with the interest on business loans, they can only offset it against the profits of the business. Only property investors can say "well the business lost money so I'm claiming that against my salary". If you can't run your business at a profit, you shouldn't be in business.

Good explanation of negative gearing. In the interest of fairness, Dutton has 6 investment properties. As if Project viewers need to have their prejudices against Labor re-enforced.

Property is one of Australia’s financial pillars

Keating got rid of negative gearing in 1987. Result - rents went through the roof due to investors fleeing the market. Labor had to later reinstall it later to restore balance to the rental market. Get rid of it and the same thing will happen again. Doesn't bother me, rental property is a terrible investment. I get a much better return on shares.

As a nurse I am sick to death of hearing about "nurses" negative gearing. I have been a nurse for 15 years and don't know a single nurse with a rental property. We've had a 1% pay rise over the last 2 years, we can barely afford to live so stop using use as your "aussie battler" excuse for keeping negative gearing.

Greg Jericho is a dead set legend. He brings receipts and explains the point so succinctly.

Get rid of it. Stop foreigners buying Australian real estate. If they want to live here they can rent from an Australian . They can also put caps on rent.

If the next generation gets it's head straight and crushes the Coalition then the field opens up for much needed change👍

As your rents increase with time and your equity increases, the gap between negative gearing and positive gearing decreases and usually after around 10 years you begin to have to pay tax. Then if you sell your positively geared property you have to pay tax on the deamed value. You cannot use the scenario of the beginning of negative gearing and not take into account that firstly you are reducing your income to live, ie, having a lower standard of living by forgoing a large proportion of your wages to pay the interest on your loan. I have been saying for years, while you are young and living at home, if you save a deposit and buy a very cheap property and rent it out. Then when it becomes time to move out of home into your investment property you with have good equity in the home. If you sell the property to buy a better house you will have to pay capital gains

How many invest properties does Waleed have?

Robert Kiyosaki once described negative gearing as "the government subsidising a loss making business"

You left out that most neg gearing turns positive gearing in a few years...

New construction only. We need to incentivize investments toward building new housing, not buying up existing housing.

Negative gearing is the No 1 reason our children have no chance of buying a home in the so called lucky country they call Australia!

The Project, such a cringeworthy show.

I am 54 and I still can't get into housing market coz of this damn negative gearing. abolish it please and let average or low-income people have a chance to buy their first homes!