Whenever Governments change policies the affects are mostly...

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    Whenever Governments change policies the affects are mostly unknown, sometimes different to what was intended. When Keating introduced Capital Gains Tax and exempted principal place of residence is one example. Boomers decided to put a huge chunk of wealth into big houses thus the birth of Mc Mansions. Great, live in a palace and make a killing tax free when sell, now years later that is proving to be a disaster. The new term is the starving millionaires as running costs eat up their cash flow and some places the gains have not been as expected. Another example when Rudd eased immigration and refugee policy , unleashed a wave of Illegal entrants that swamped facilities and led to mass deaths at sea.
    Shortens changes to Negative Gearing and changes to Capital Gains tax could have many different outcomes. Maybe their will be a mass of new builds, maybe first home buyers will buy in middle rings suburbs off distressed Investors, maybe there will be a rush to buy before changes. If one logically looked at these changes they are all designed to bring down the price of existing properties and create more new supply. In the words of Shorten create more affordable housing, ok all those existing home owners should be glad to take a hit for the chance for Billy's battlers to buy a house.
    Go Billy.
 
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