Negative Gearing Persuasive Speech

Good afternoon peers and teachers, today I’m here to expose the truth that seems to be clouded by misunderstanding and slander, the truth that Negative Gearing is detrimental towards the prosperity of the Australian housing market, facilitating the ever-widening gap between the rich and the poor. Now straight off the bat, most of you will be sitting there asking yourselves, what is Negative Gearing? Negative Gearing in simple terms occurs when you have to borrow money to buy a property and the rental income, after deducting all the other property expenses, does not cover the interest on the mortgage, this deficit is then covered by Government at the expense of tax payers. You’re still probably thinking what does this have to do with me? Well as a result of Negative Gearing there’s been an increase in the age in which young adults leave home, which is caused by the loophole being predominantly abused by the rich which has been sheltered from tax reform as it is said to “increase housing supply”, however this isn’t true and it is

Politicians fear that if they abolish Negative Gearing as was done for a short period in the 80’s there will be a destabilisation in the rental market pushing up the cost of rent. However as can be seen now, this would not be the case, the only reason rents slightly rose in Sydney and Perth exclusively was due to economic and population growth and the fact that there weren’t enough houses being built in the years previous. It also must be noted that 92% of houses that claim negative gearing do so on existing properties, which mean they do nothing to benefit individuals who want to fulfil their own Australian dream, by purchasing their very own home to raise their family in, but instead overinflate demand for properties, creating an artificial property market in which is being propped up on unsustainable holes in the Australian