pm is committed to high property prices

  1. 1,575 Posts.
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    Just saw on Q and A (ABC) amazing statement by PM in answer to a question that the she decided not to remove negative gearing (in response to Henry review) because she thought it would cause serious distortions to the property market.

    This is amazing for a number of reasons. First off the PM thinks that removing negative gearing would cause a distortion - rather than the common perception that negative gearing is distorting the property market. Secondly the PM is admitting that the housing market is being held up by negative gearing and removing it would cause a crash.

    Thirdly and more importantly it shows the PM is committed to high property prices and will not hesitate to act with intervention to underwrite property values. For now the RBA is doing that job, but if that is not enough we now know the Commonwealth Government will act.

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