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A lot of people think removing negative gearing would instantly make housing more affordable. But history tells a more complicated story. In 1985, Australia temporarily removed the ability for investors to offset rental losses against personal income. The result? • Investor activity slowed • Rental supply tightened in key markets • Rents surged in areas already facing low vacancy rates During that period: • Sydney rents rose sharply • Perth rents jumped significantly • Melbourne also experienced strong rental growth The policy was eventually reversed in 1987. Here’s the bigger issue nobody talks about: Australia doesn’t just have a pricing problem….. we have a supply problem. If fewer investors enter the market while migration stays high and construction struggles to keep up, rental pressure can increase even further. Whether you agree with negative gearing or not, long-term affordability comes from increasing housing supply, improving infrastructure, and creating smarter policy… not just discouraging investment. Property isn’t black and white. The real conversation is understanding how policy impacts everyday Australians, renters, investors, and future buyers alike. Good luck to our younger Australians trying to get into the property market whilst their rent increases drastically #property #invest #realestate #money #wealth