In the period up to and around the millennium, negative gearing and capital gains tax discounts were significant to property prices.
They are not any more.
Mass immigration and stock shortages for both rentals and purchases have kept the housing bubble inflated ever since 2003, more and more since 2013, and especially since COVID lowered persons per household.
Moreover, the Albanese government has three house price inflation policies before the senate that will send prices and rents higher for longer regardless of negative gearing.
- Build-to-rent will corporatise rents, giving more leverage to large landlords.
- Shared Equity reyhothecates the national budget into house price inflation, and
- Building pubic housing far below immigration levels only makes everything worse.
If Albo tosses the Greens negative gearing caps in exchange for their support in the Senate, negative gearing caps will be even more irrelevant.
Indeed, if they share power and immigration increases even further, the entire fake left will create an endless homelessness boom that will drive prices higher forever.
