Ever wondered why economists seem to favour land tax? What happens if we get rid of stamp duty on houses? And why do some people say negative gearing and capital gains tax discounts are bad? We're here to unpack these questions and more.

Join us in this episode as we explore the often-debated topics of negative gearing and the capital gains tax discount with Chief Economist Michael Blythe, whose recent paper, "In Praise of Negative Gearing" has stirred up quite a buzz. We dive into the insights and arguments he presents and uncover the nexus between property taxes and housing market behaviour.

Whether you own a home, rent, or just want to know more, this episode is for you. Hit play and let's get into the nitty-gritty of property taxes and the housing market!

Episode Highlights:

00:00 - Introduction

01:06 - Who is Michael Blythe?

01:43 - What role does tax play in property market challenges?

03:49 - Historical context: Negative gearing and CGT discounts

10:03 - Did property prices really slow down without negative gearing?

17:06 - How has the ACT's taxation change affected property prices?

25:37 - The pros and cons of an expensive property market from a societal standpoint

29:46 - Is negative gearing detrimental to both home buyers and renters, as some argue?

34:36 - Where does the economy currently stand in terms of inflation control?

37:37 - Is the economy headed for higher prices and a cost-of-living crisis?

40:00 - The limitations of using interest rates as a tool to manage inflation

44:17 - The downsides of downsizing

50:29 - How does the aged care system impact housing availability?

52:04 - The interplay between property investing, negative gearing, and taxpayer costs

57:27 - Michael Blythe’s property dumbo

About Our Guest:

Michael Blythe is a respected Chief Economist and senior executive with extensive experience in economic policy and financial markets. He has worked across both Commonwealth Bank of Australia and Reserve Bank of Australia and brings great knowledge of, and insight into, the Australian and global economy, economic policy and markets.

Connect with Michael Blythe:
LinkedIn https://www.linkedin.com/in/michael-blythe-272a1688/
Website https://www.downsizer.com/

Resources:
Visit our website https://www.theelephantintheroom.com.au
If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast - questions@theelephantintheroom.com.au
Looking for a Sydney Buyers Agent? https://www.gooddeeds.com.au
Work with Veronica: https://www.veronicamorgan.com.au
Looking for a Mortgage Broker? https://www.blusk.au
Work with Chris: hello@blusk.au

Enjoyed the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word and join us for more insightful discussions in real estate. Your journey starts now!
Subscribe on YouTube: https://www.youtube.com/@theelephantintheroom-podcast
Subscribe on Apple Podcasts: https://podcasts.apple.com/ph/podcast/the-elephant-in-the-room-property-podcast/id1384822719
Subscribe on Spotify: https://open.spotify.com/show/3Ge1626dgnmK0RyKPcXjP0?si=26cde394fa854765

Ever wondered why economists seem to favour land tax? What happens if we get rid of stamp duty on houses? And why do some people say negative gearing and capital gains tax discounts are bad? We're here to unpack these questions and more.
Join us in this episode as we explore the often-debated topics of negative gearing and the capital gains tax discount with Chief Economist Michael Blythe, whose recent paper, "In Praise of Negative Gearing" has stirred up quite a buzz. We dive into the insights and arguments he presents and uncover the nexus between property taxes and housing market behaviour.
Whether you own a home, rent, or just want to know more, this episode is for you. Hit play and let's get into the nitty-gritty of property taxes and the housing market!
Episode Highlights:
00:00 - Introduction
01:06 - Who is Michael Blythe?
01:43 - What role does tax play in property market challenges?
03:49 - Historical context: Negative gearing and CGT discounts
10:03 - Did property prices really slow down without negative gearing?
17:06 - How has the ACT's taxation change affected property prices?
25:37 - The pros and cons of an expensive property market from a societal standpoint
29:46 - Is negative gearing detrimental to both home buyers and renters, as some argue?
34:36 - Where does the economy currently stand in terms of inflation control?
37:37 - Is the economy headed for higher prices and a cost-of-living crisis?
40:00 - The limitations of using interest rates as a tool to manage inflation
44:17 - The downsides of downsizing
50:29 - How does the aged care system impact housing availability?
52:04 - The interplay between property investing, negative gearing, and taxpayer costs
57:27 - Michael Blythe’s property dumbo
About Our Guest:
Michael Blythe is a respected Chief Economist and senior executive with extensive experience in economic policy and financial markets. He has worked across both Commonwealth Bank of Australia and Reserve Bank of Australia and brings great knowledge of, and insight into, the Australian and global economy, economic policy and markets.
Connect with Michael Blythe:
<ul>
<li aria-level="1">LinkedIn <a href="https://www.linkedin.com/in/michael-blythe-272a1688/">https://www.linkedin.com/in/michael-blythe-272a1688/</a></li>
<li aria-level="1">Website <a href="https://www.downsizer.com/">https://www.downsizer.com/</a></li>
</ul>
Resources:
<ul>
<li aria-level="1">Visit our website <a href="https://www.theelephantintheroom.com.au">https://www.theelephantintheroom.com.au</a></li>
<li aria-level="1">If you have any questions or would like to be featured on our show, contact us at: The Elephant in the Room Property Podcast - <a href="mailto:questions@theelephantintheroom.com.au">questions@theelephantintheroom.com.au</a></li>
<li aria-level="1">Looking for a Sydney Buyers Agent? <a href="http://www.gooddeeds.com.au/">https://www.gooddeeds.com.au</a></li>
<li aria-level="1">Work with Veronica: <a href="http://www.veronicamorgan.com.au">https://www.veronicamorgan.com.au</a></li>
<li aria-level="1">Looking for a Mortgage Broker? <a href="http://www.blusk.au">https://www.blusk.au</a></li>
<li aria-level="1">Work with Chris: <a href="mailto:hello@blusk.au">hello@blusk.au</a></li>
</ul>
Enjoyed the podcast? Don't miss out on what's yet to come! Hit that subscription button, spread the word and join us for more insightful discussions in real estate. Your journey starts now!
<ul>
<li aria-level="1">Subscribe on YouTube: <a href="https://www.youtube.com/@theelephantintheroom-podcast">https://www.youtube.com/@theelephantintheroom-podcast</a></li>
<li aria-level="1">Subscribe on Apple Podcasts: <a href="https://podcasts.apple.com/ph/podcast/the-elephant-in-the-room-property-podcast/id1384822719">https://podcasts.apple.com/ph/podcast/the-elephant-in-the-room-property-podcast/id1384822719</a></li>
<li aria-level="1">Subscribe on Spotify: <a href="https://open.spotify.com/show/3Ge1626dgnmK0RyKPcXjP0?si=26cde394fa854765">https://open.spotify.com/show/3Ge1626dgnmK0RyKPcXjP0?si=26cde394fa854765</a></li>
</ul>

Who's really in control when you buy a property?

The Elephant In The Room is where the things that no one wants to talk about, actually get talked about.  

Veronica Morgan, real estate agent, buyers agent and co-host of Foxtel’s Location Location Location Australia & Chris Bates, financial planner, mortgage broker and wealth coach have joined forces to find out what’s really going on in the world of real estate.

Veronica and Chris talk to property owners and buyers every day in their respective lines of business. They’ve observed a wide spectrum of confidence in people’s decision making ability when buying and selling property, often to the detriment of the individuals concerned. They are both fascinated by consumer behaviour and together they’re going to uncover who’s really making the decisions when you buy a property.

In each episode they get into the psyche of buyers, agents, auctioneers and other industry experts to learn the truth about how buyers are influenced and why they do the things they do. In every episode you’ll learn from the mistakes of a “property dumbo” as well as Chris & Veronica’s “elephant rider bootcamp” training session.

The plan? This property podcast has been created to help us all make better property decisions!

We talk about the things no one wants to talk about in the Property Market

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