Australian house prices will fall if negative gearing goes, study says

Melbourne University modelling, presented to Reserve Bank, shows home ownership rates could rise to 72.2% if the policy is ditched

Three-quarters of Australian households will be better off if negative gearing is abolished, a study presented to the Reserve Bank of Australia shows.Close to 75% of households could own their own homes if the policy was axed, and house prices would soften by 1.2% while rents would rise “only marginally”, it said.The economic modelling undertaken by Melbourne University economists was presented to a Reserve Bank workshop last month, and publicly released on Friday.The paper, by department of ...