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Scrapping negative gearing won’t hurt the rich.......
it’ll hurt the Australians trying to become rich
For years Aussies were told to work hard, save their money, buy property, and slowly build wealth over time.
Now those Aussies, who finally stretched themselves enough to buy 1 investment, are hearing the rules could change halfway through the game
Most people picture wealthy investors with massive portfolios when they hear ‘negative gearing’
But the reality is very different...
Over 70% of Australian property investors own just 1 Investment Property
That’s not the ultra rich,
That’s everyday Australians trying to get ahead
For many mum and dad investors, negative gearing was never about getting “rich quick”
It was what helped them hold the property with confidence, while repayments were high, interest rates increased and property ran at a loss early
on
Without that support, a lot of people simply won’t take the risk anymore.
So what probably happens next?
- Smaller investors slowly pull out of the
market
- Few rental properties become available
- Rental supply tightens even more
- And rents? They keep rising
Meanwhile, the wealthy- with stronger cash flow, trusts, companies and more buying power- continue acquiring assets anyway
Australia already has a housing shortage.
Vacancy rates in some cities are sitting below 1%, migration is rising, and construction is slowing down.
So removing incentives for everyday investors doesn’t suddenly create more housing.
If anything, it risks reducing rental supply even further.
Australia doesn’t have a “mum & dad investor” problem.
It has a housing supply problem.
And if smaller investors disappear, ownership becomes even more concentrated at the top.
Which raises a serious question:
Does scrapping negative gearing actually make housing more affordable... or just make wealth harder to build for everyday Australians?