{"id":7354,"date":"2016-03-17T01:00:26","date_gmt":"2016-03-16T14:00:26","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=7354"},"modified":"2016-03-17T01:00:26","modified_gmt":"2016-03-16T14:00:26","slug":"negative-gearing-debate-simon-pressley","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/","title":{"rendered":"Negative Gearing Debate &#8211; Simon Pressley"},"content":{"rendered":"<p>&nbsp;<br \/>\nIn today&#8217;s show <strong>Simon Pressley<\/strong>,\u00a0from Propertyology, adds his voice to the Negative Gearing debate.<br \/>\n&nbsp;<\/p>\n<h4><strong>Transcript:<\/strong><\/h4>\n<p><b>Kevin<\/b>:\u00a0 Well, everybody\u2019s talking about it, and to add his voice to the negative gearing debate, I\u2019m joined by Simon Pressley from Propertyology.<br \/>\nGood day, Simon.<br \/>\n<b>Simon<\/b>:\u00a0 Good day, Kevin. Nice to talk to you again.<br \/>\n<b>Kevin<\/b>:\u00a0 Yeah, everyone is talking about this, aren\u2019t they? Negative gearing. Let\u2019s firstly talk about how negatively gearing affects all Australians \u2013 or doesn\u2019t affect them.<br \/>\n<b>Simon<\/b>:\u00a0 Look, it\u2019s a tax policy, but it\u2019s very far-reaching. It\u2019s more than the investor with some benefit from negative gearing; it directly relates to housing supply.<br \/>\nTo use some official statistics, investors actually provide 27.1% of all properties to the public, and most of those investors are everyday Australians like you and I. Scrapping negative gearing is not just about the tax impact on individual investors; it\u2019s about where is the supply of all that rental accommodation that we\u2019re always going to need?<br \/>\nIt affects the construction industry. Most of the brand new product that the construction industry sells, whether it\u2019s a foreign investor or an Australian-based investor, relies on a certain number of investors buying that product. Of course, if there\u2019s going to be less buyers, there\u2019s going to be less built, which then will mean construction jobs lost.<br \/>\nThe other area \u2013 and I think most important area, Kevin \u2013 is our welfare system. It\u2019s not that long ago that a former Treasurer by the name of Joe Hockey said that our welfare bill is growing by $400 million per day. The biggest component of our welfare bill is, of course, the age pension. To do something to reduce Australia\u2019s taxpayer money going into age pensions, we probably need to encourage people to invest more, I would suggest.<br \/>\n<b>Kevin<\/b>:\u00a0 Yes. Simon, you\u2019re on record as saying that you don\u2019t really care whether negative gearing is in or out. Why is that?<br \/>\n<b>Simon<\/b>:\u00a0 That would probably surprise a lot of people coming from someone who is a professional investor and who has a business where all we do is help investors.<br \/>\nI don\u2019t think the policy should be tinkered with at all, mind you, but why I\u2019m not worried about it in regards to the impact I think it will have on values of properties in my portfolio or my rental returns or anything like that is it\u2019s impossible to say, \u201cIt will go this way, up or down,\u201d because there\u2019s a lot more than tax policies that affect property markets, of course.<br \/>\nBut it\u2019s more likely that there could actually be a boom created by this. There could be a period of time where people go, \u201cI have to quickly by those established properties before they change the rules,\u201d and that could create a tsunami of buyers flocking to a market.<br \/>\nCertainly, I feel very confident that rents will push up. It\u2019s basic commonsense. If anything is done to discourage investors, then there\u2019s going to be less stock for the rental pool, so that has to go one way \u2013 rents up.<br \/>\n<b>Kevin<\/b>:\u00a0 That\u2019s right. It is going to impact supply; there\u2019s no question of that. It\u2019s all about supply and demand. Is, therefore, scrapping negative gearing not necessarily a good thing for the country? What are some of the unintended consequences?<br \/>\n<b>Simon<\/b>:\u00a0 Well, the unintended consequences are those things that I referred to earlier. I don\u2019t think these policies have been thought through. Greater reliance on tax payer dollars going towards welfare. We\u2019ve got millions of people exiting the workforce. The baby boomer generation over the next 15 years are exiting the workforce.<br \/>\nUnfortunately, for those people, there\u2019s probably not much time left in their working life to do much about it, but the generations prior to that have got plenty of time.<br \/>\nSo if we\u2019re taking away incentives for people to take to invest and take control of their financial future, then when they reach the equivalent of the baby boomer age, there\u2019s going to be more of those people on age pensions. That will be an unintended consequence. What you might take away from tax refunds today, you\u2019re going to be finding extra money to fund pensions in years to come.<br \/>\nIt\u2019s not going to be a good thing for the construction industry \u2013 anyone who is a developer. The Property Council have come out loud and strong saying, \u201cDon\u2019t touch this. You\u2019re going to affect our jobs,\u201d and this country needs more jobs, not less jobs.<br \/>\n<b>Kevin<\/b>:\u00a0 Simon, let me play devil\u2019s advocate for a moment. In the event that they were to scrap negative gearing, that would logically take a lot of the investors out of the market. Doesn\u2019t that then lower the competition for first-home buyers, and therefore, lower the prices?<br \/>\n<b>Simon<\/b>:\u00a0 I don\u2019t actually subscribe that that\u2019s what will happen. I think there\u2019s always going to be a percentage of the population who do not want to one day at age 60 or 65 fund their lifestyle off of whatever they can do with a government-funded pension. There\u2019s always going to be the motivated Australian who says, \u201cI want to do better than that,\u201d and of course, the only way to do that is to invest, so they\u2019re always going to do that.<br \/>\nMost investors don\u2019t actually invest with the primary reason being a tax incentive; they invest with the \u201cI don\u2019t like what my life will look like in 15, 20 years\u2019 time.\u201d If they\u2019re going to do that and there\u2019s a legal tax benefit they can claim along the way, they will do it. But that\u2019s the order that investors make decisions, so we\u2019re always going to invest.<br \/>\nOn the supply side of things, if they scrap negative gearing, I think it\u2019s going to diminish supply. Even if there was lower buyer activity, there definitely will be less supply, and those two dynamics, I think, will keep forcing prices up.<br \/>\n<b>Kevin<\/b>:\u00a0 Always good talking to you. Simon Pressley from Propertyology. Thanks for your time, mate.<br \/>\n<b>Simon<\/b>:\u00a0 Thanks, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>&nbsp; In today&#8217;s show Simon Pressley,\u00a0from Propertyology, adds his voice to the Negative Gearing debate. &nbsp; Transcript: Kevin:\u00a0 Well, everybody\u2019s talking about it, and to add his voice to the negative gearing debate, I\u2019m joined by Simon Pressley from Propertyology. Good day, Simon. Simon:\u00a0 Good&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[34,10,11,13,36,17,22,25],"tags":[93],"class_list":["post-7354","post","type-post","status-publish","format-standard","hentry","category-finance-topic","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-property-investment","category-research-topic","category-sponsored-channels","tag-negative-gearing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Negative Gearing Debate - Simon Pressley - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Negative Gearing Debate - Simon Pressley - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"&nbsp; In today&#8217;s show Simon Pressley,\u00a0from Propertyology, adds his voice to the Negative Gearing debate. &nbsp; Transcript: Kevin:\u00a0 Well, everybody\u2019s talking about it, and to add his voice to the negative gearing debate, I\u2019m joined by Simon Pressley from Propertyology. Good day, Simon. Simon:\u00a0 Good...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/\" \/>\n<meta property=\"og:site_name\" content=\"Realty Talk\" \/>\n<meta property=\"article:published_time\" content=\"2016-03-16T14:00:26+00:00\" \/>\n<meta name=\"author\" content=\"rolanrush\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rolanrush\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/negative-gearing-debate-simon-pressley\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/negative-gearing-debate-simon-pressley\\\/\"},\"author\":{\"name\":\"rolanrush\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"headline\":\"Negative Gearing Debate &#8211; Simon Pressley\",\"datePublished\":\"2016-03-16T14:00:26+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/negative-gearing-debate-simon-pressley\\\/\"},\"wordCount\":1055,\"commentCount\":0,\"keywords\":[\"negative gearing\"],\"articleSection\":[\"Finance\",\"Kevin Turner\",\"Kevin's Update\",\"Latest Stories\",\"Property Investment\",\"Property Investment Topics\",\"Research\",\"Sponsored Channels\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/negative-gearing-debate-simon-pressley\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/negative-gearing-debate-simon-pressley\\\/\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/negative-gearing-debate-simon-pressley\\\/\",\"name\":\"Negative Gearing Debate - Simon Pressley - Realty Talk\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\"},\"datePublished\":\"2016-03-16T14:00:26+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/negative-gearing-debate-simon-pressley\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/negative-gearing-debate-simon-pressley\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/negative-gearing-debate-simon-pressley\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Negative Gearing Debate &#8211; Simon Pressley\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#website\",\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/\",\"name\":\"Realty Talk\",\"description\":\"Your Trusted Voice For Property Investing. Anywhere, Anytime.\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/#\\\/schema\\\/person\\\/384a57ac9e52cb9bf19896cb15eaa52d\",\"name\":\"rolanrush\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g\",\"caption\":\"rolanrush\"},\"url\":\"https:\\\/\\\/channels.realty.com.au\\\/realtytalk\\\/author\\\/rolanrush\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Negative Gearing Debate - Simon Pressley - Realty Talk","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/","og_locale":"en_US","og_type":"article","og_title":"Negative Gearing Debate - Simon Pressley - Realty Talk","og_description":"&nbsp; In today&#8217;s show Simon Pressley,\u00a0from Propertyology, adds his voice to the Negative Gearing debate. &nbsp; Transcript: Kevin:\u00a0 Well, everybody\u2019s talking about it, and to add his voice to the negative gearing debate, I\u2019m joined by Simon Pressley from Propertyology. Good day, Simon. Simon:\u00a0 Good...","og_url":"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/","og_site_name":"Realty Talk","article_published_time":"2016-03-16T14:00:26+00:00","author":"rolanrush","twitter_card":"summary_large_image","twitter_misc":{"Written by":"rolanrush","Est. reading time":"5 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/#article","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/"},"author":{"name":"rolanrush","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"headline":"Negative Gearing Debate &#8211; Simon Pressley","datePublished":"2016-03-16T14:00:26+00:00","mainEntityOfPage":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/"},"wordCount":1055,"commentCount":0,"keywords":["negative gearing"],"articleSection":["Finance","Kevin Turner","Kevin's Update","Latest Stories","Property Investment","Property Investment Topics","Research","Sponsored Channels"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/","url":"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/","name":"Negative Gearing Debate - Simon Pressley - Realty Talk","isPartOf":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website"},"datePublished":"2016-03-16T14:00:26+00:00","author":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d"},"breadcrumb":{"@id":"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/channels.realty.com.au\/realtytalk\/negative-gearing-debate-simon-pressley\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/channels.realty.com.au\/realtytalk\/"},{"@type":"ListItem","position":2,"name":"Negative Gearing Debate &#8211; Simon Pressley"}]},{"@type":"WebSite","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#website","url":"https:\/\/channels.realty.com.au\/realtytalk\/","name":"Realty Talk","description":"Your Trusted Voice For Property Investing. Anywhere, Anytime.","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/channels.realty.com.au\/realtytalk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/channels.realty.com.au\/realtytalk\/#\/schema\/person\/384a57ac9e52cb9bf19896cb15eaa52d","name":"rolanrush","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/86544778804295a7fa45cbde097dc3a58a45ba6ed28859f17059ca74c38723d2?s=96&d=mm&r=g","caption":"rolanrush"},"url":"https:\/\/channels.realty.com.au\/realtytalk\/author\/rolanrush\/"}]}},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/7354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/users\/176692471"}],"replies":[{"embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/comments?post=7354"}],"version-history":[{"count":0,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/posts\/7354\/revisions"}],"wp:attachment":[{"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/media?parent=7354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/categories?post=7354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/channels.realty.com.au\/realtytalk\/wp-json\/wp\/v2\/tags?post=7354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}