Ian Verrender

to basically buy houses and bid up the price of houses.

Now, if these changes are announced in the budget on Tuesday, and we expect that they will be, is that going to result in a big drop in property prices?

Probably not.

These things take years to filter through.

That's right.

So, I mean, it's really a change for the future and it'll be a gradual change.

I mean, I thought the 2019 proposition, which was to essentially only have negative gearing on new builds, new properties, was a good idea because what that would do would be to encourage investors into putting money into new houses.

increasing the supply.

And I think the prime minister has already announced that he, you know, we heard him just this morning say, well, what we need is we're a government that believes in extra supply, right?

So that's, you can see that where that's heading.

So it's a double whammy, really.

So you're still allowing property investment, you're still allowing negative gearing on it, but you're encouraging that negative geared money to go into new builds, which increases the supply, and it takes them out of the market for existing properties that most first-home buyers would be looking for.

Look, it costs a lot of money to set up a family trust.

I don't have one.

I don't know anybody who does, to be perfectly honest with you.

That's true.

I think, from what I've been told, you need around about $300,000 a year income to make it worthwhile.

Yeah, and there are enormous costs involved in not just the implementation but the management of a family trust.

So it's always...

astounded me that people are prepared to spend huge amounts of money on accountants and advisors and everything else to avoid paying tax.