The Kouk's top 40 hits and misses

more Over the summer break, while fiddling through data bases, reading and just being interested in things, I unearthed a few quirky bits and pieces about the Australian economy, people, sport

The Kouk's Outlook

more If you need a reliable, accurate, thought provoking and informed economic forecasting at both local and international levels, look no further. Informed by Stephen's exceptionally broad experience and background, his

Economist

more Stephen Koukoulas has a rare and specialised professional experience over more than 25 years as an economist in Treasury, as Global Head of economic and market research, a Chief Economist
Stephen Koukoulas - Economist
Contact Stephen Koukoulas
About Speaker Stephen Koukoulas
Testimonials for Stephen Koukoulas, Speaker

THE LATEST FROM THE KOUK

9 questions for Mr Turnbull who's on Q&A tonight

Mon, 20 Jun 2016

Prime Minister Malcolm Turnbull will be on Q&A tonight and let’s hope that at least a few of the questions cut to the key points of economic management. With the economy confronting a range of economic challenges, here are nine questions that Mr Turnbull should be asked.

Why negative gearing makes little difference to house prices

Tue, 14 Jun 2016

This article first appeared on the Yahoo7 Finance website at this link: https://au.finance.yahoo.com/news/why-negative-gearing-makes-little-difference-to-house-prices-220614834.html 

-------------------------------------------------------

Why negative gearing makes little difference to house prices

Negative gearing makes little difference to house prices.

Other factors such as new construction, demand from population growth, the unemployment rate and the overall business cycle are far more important determinants of house price changes than tax rules. One only has to look at the recent capital house price trends for unambiguous proof.

Since January 2015, Sydney house prices have risen by around 20 per cent. Over the same timeframe, Perth house prices have fallen by around 9 per cent.

This massive 30 per cent differential between Sydney and Perth house prices in just 18 months, has occurred with the existing negative gearing and capital gains tax laws in place. Nothing has changed in tax policy over that time. Quite plainly, something other than negative gearing rules are impacting on house prices.