The forum has been very quiet in the past week. I imagine all the flatchatters have turned their attention to the negative gearing and CGT changes and what those might mean for them.
I’m in the “don’t panic” camp, although I feel sorry for those who are trying to sell right now, and those who were about to buy with a negative gearing strategy. Nothing has been legislated, so it’s hard to be certain about anything. Wait a few weeks and things will be clearer.
My prediction is that the negative gearing changes will pass through as announced. But I think we have a way to go with the CGT changes. Already we are hearing about unintended consequences, and I think a few of the harshest features of the new plan may be modified. I wouldn’t be panic-selling yet.
I’m not a financial advisor, just a punter with a fine Australian education. Please take my comments with that in mind, and gather your input from a wide range of sources.