Why is property in Australia the most expensive among English-speaking countries?
There are many reasons, some covered in other posts. However I think the major reason for why Australia has such high house prices is a thing called “negative gearing.” This is a tax system that allows you to write off losses on investment properties. So if the costs (loan interest etc) of having an investment property are greater that the income (from rent) then you don’t have to pay tax on the income. This was introduced as an incentive to encourage people invest in property and make more rental properties available. But why would anyone invest in something that runs at a loss? The expect…
