Negative Gearing explained - is it good or bad for the economy?

With Australian leaders of all political hues saying almost contradictory things about "negative gearing", we invited an expert into the SBS Punjabi studios to explain it all.

Dr Harminder Singh at the SBS Punjabi sutdios, Melbourne Source: SBS Punjabi

What is negative gearing? Has the property market over-heated because of it? Does it disadvantage first home buyers, by giving financial benefit to investors? And should the regulations pertaining to negative gearing and capital gains tax need to be changed?

 

These are just some of the questions we posted to Dr Harminder Singh, who is Associate Professor of Finance, and also Director International Engagement, at Melbourne's Deakin University.

 

Here is a podcast of the interview, which attempts to demystify the concepts of negative gearing and capital gains tax, with Dr Singh proposing changes to the current regulation, so that it will benefit most Australians, as well as the economy.