Schroedinger’s negative-gearing investor

SQM Research contradicts itself on Labor’s negative-gearing policy

… So we are supposed to believe that, on the one hand, investors will be so spooked by the non-transferability of negative gearing that investment in new homes will fall, in spite of the continued allowance of negative gearing for new homes but not established homes; and on the other hand, investors will be so un-spooked by the non-transferability of negative gearing that they will not only pay an increased premium for new homes relative to established homes, but will scramble to buy negatively-geared established homes while they still can!

Read the full article at Land Values Research Group (or reposted at MacroBusiness).

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https://prosper.org.au/2016/06/23/schroedingers-negative-gearing-investor/