Capital gains tax hikes will put ‘substantial upward pressure’ on property prices
17 February 2017
Any change to the existing environment permitting tax breaks on negative gearing or capital gains tax deductions on property investments would quickly push prices lower
Andrew Schwartz said “We would expect that any changes to the tax base, such as cuts to CGT exemptions or changes to negative gearing, would have a short term downward impact to prices as investors potentially look to switch asset classes. However, in the medium term, it will put substantial upward pressure on all housing as new supply will be significantly reduced, leading to greater housing shortage and in turn tremendous price growth.”
Click here to read the full article in the Australian Financial Review.