While it is reasonable to review the fairness of the current negative gearing/capital gains tax arrangements, the Reserve Bank has indicated it would rather change capital gains tax arrangements than negative gearing.
Australia’s property industry is emerging as the main driver of economic growth and increased employment in the transition away from a decade-long reliance on mining.
"Limiting negative gearing to new dwellings will only add a distortion that reduces investment in housing, erode housing affordability and put upward pressure on rents."
Whether conditions in 2016 translate to greater opportunities for first home buyers remains to be seen, but for the first time in years getting a foot in the door does not seem so insurmountable.
A feature of the past year has been the diversity of the Australian housing market with the median price in Sydney increasing by 22.6 per cent in the twelve months to September whilst Perth decreased by 5.0 per cent.
