Aussie John Symond slams Labor negative gearing housing policy
Labor’s negative gearing policy was a “hand grenade” that could tip Australia into recession, mortgage broking pioneer John Symond has warned.
“I don’t care whether it was Liberal, Labor or the Greens, if they come out with such a radical move that could tip the economy over, I’ll be outspoken,” Mr Symond told The Australian.
“I appreciate that they say they’ll grandfather existing investors, but the unintended consequences would be astronomical.
“I am concerned that it would do so much damage — unemployment, higher interest rates — it could tip us into recession.”
Mr Symond said grandfathering negative gearing would help first-home buyers get into the market.
But it would “hurt the vast majority of Australians” who already own a home because established property prices would fall.
“Every home through every street will be impacted.
"You’ll have tens of thousands of people in negative equity. Bank balance sheets will be whacked and so funding costs will be higher.
“Banks will lend less, banks will earn less, share prices will fall and it will impact superannuation fund returns,” he said.
“It will be a nuclear bomb.
"There will be very little incentive for people to get into property.”
