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Thank you! Nicely done, and explained… I’ll join you on that date too
Perfect description of the current situation, with the last line being bloody perfect.
Hi Fury, negatively geared properties can’t be left empty. The ATO only allows investors to negatively gear a property if it is rented or available for rent at market rates. If the property is kept vacant then the investor is not allowed to claim a deduction. So negative gearing actually encourages investors to make the property available to rent, which is the complete opposite of the premise of your infographic.
More details here: http://australianpropertyforum.com/topic/10424860
Just because negatively geared properties ‘can’t’ be left vacant, doesn’t mean they are not. Nominally, you can only claim a deduction if you are using the property as an investment and don’t charge rent below the market rate, but that doesn’t prevent people from making dodgy cash in hand arrangements with family members/friends.
Sounds like a better solution might be to enforce that law then.
Awesome!
The myth that 1985 pushed rents up has also been debunked here: https://www.macrobusiness.com.au/2015/11/the-oz-promotes-negative-gearing-lies/