Ok, here is the deal. The property council Sydney has started an advertising blitz to pressure the government into leaving their tax policy intact in terms of negative gearing. The council clearly has a vested interest in a flourishing property market. They want people buying and selling property so they can keep making a handsome living. They want the property prices to grow perpetually, so people keep investing in it, again, lining the council member’s pockets with commission money.
However, a big part of the property buyers are encouraged by what Australians call “negative gearing”. There has been mounting pressure on the Australian policy makers that this negative gearing is inflating property prices artificially and hence should be restricted to only new buildings and some have even gone as far as removing it completely. Except for those who benefit directly from the property market ( mortgage brokers, real estate agents etc.), most sensible economists have been decrying this market as somewhat of a ponzi scheme, a house of cards if you will. The federal government seems to be beginning to consider changes to the negative gearing scheme, and the property council mentioned above swiftly sprung to action to defend negative gearing.
Except, they have done such an ill-conceived advertising campaign that kind of makes the point against them. They put in no thought into the process, and have actually likened the property market to a house of cards, and show it to be the most fragile, dangerously unstable thing that it has become. Don’t believe me, watch it for yourself!!