Minister Malcolm Turnbull and Negative Gearing

John Alexander: Key points:Housing boom forcing buyers into huge mortgages, or out to the fringes of the cities Liberal MP John Alexander tells Four Corners negative gearing helped create price spike Jeff Kennett says Labor new negative gearing policy is reasonable and responsible Prime Minister Malcolm Turnbull has made it clear there will not be any changes to negative gearing in tomorrow budget, but the debate is still going on, as house prices in Sydney and Melbourne remain out of reach for many first homebuyers, according to Australian Broadcasting Corporation. The high prices are the result of a combination of factors — supply and demand, record low interest rates, and the mining boom — but many first homebuyers also blame negative gearing, which gives investors a big advantage in the market. Related Story: What happened to the Great Australian Dream Related Story: High-income earners benefitting from tax concessions irrelevant: PMMap: Australia The Liberal MP who led a parliamentary inquiry into housing affordability has conceded negative gearing has contributed to the current spike in house prices. Liberal MP John Alexander led an inquiry into affordability, and told Four Corners negative gearing has led to a housing market "dominated by speculative investors". "Too often we see the young couple getting beaten out at the auction, and then renting out the very place that they were trying to buy," he said. Last year, more than half of new home loans went to investors, rather than to people wanting to buy a place to actually live in. "We're travelling towards a market that is dominated by speculative investors. What happened to the Great Australian Dream First home buyers are competing with experienced investors equipped with tax breaks and negative gearing. (news.financializer.com). As reported in the news.