If you’re mad, upset and feeling helpless about the fact that you’ll probably never get into the housing market, you’re not alone. Waleed Aly is with you.
On last night’s episode of The Project, Aly delivered a powerful six minute segment on negative gearing; breaking down what it is and who it’s affecting, all before taking a sledge hammer to government claims, and doing what no politician has ever done well – providing non-biased data to back up his analysis.
Of course he did. *Cough* Gold Logie *cough, cough* ahem, Gold Logie.
A table of the top 10 electorates that benefit from negative gearing. Source: Channel 10.
The general consensus on what negative gearing does is clear, Aly argued.
"Economists agree that negative gearing pushes house prices up, contributes to making our houses some of the most expensive in the world, and if you're from generation X or Y or you're a millennial, it's one of the reasons you can't afford a house."
While assessing Malcolm Turnbull's election commitment to keep negative gearing as is, Aly pointed out that the claims made in Tuesday night's interview with Leigh Sales on 7.30 were flawed at best, and raised the train wreck PR stunt that was introducing "real" Aussie families that benefit from negative gearing.
"So to recap, negative gearing has contributed to you - generations X, Y and millennials - not being able to buy a home, but it's got this baby one, so it all evens out, yeah?"
Peter Martin, the economics editor of The Age, agreed that buying houses for infants shouldn't really be our priority.
"If things are really that bad that that's what you need to do to get into the housing market, it says a lot more about the market than that negative gearing's a good idea," he said.