'Absolute madness': Finance expert's warning over proposed negative gearing changes

Negative gearing is in the political spotlight this morning after Anthony Albanese refused to rule out future changes.

Several Labor MPs are backing a fresh look at the policy, open to at least having a discussion on property tax reform, even though a policy proposal five years ago saw Labor lose the election.

And Yellow Brick Road Home Loans executive chairman, Mark Bouris is warning history may very well repeat itself if the Australian Prime Minister toys with the idea.

READ MORE: Billionaire businessman's warning to Federal Government

"I don't know why they would go back there, I would caution them because this lost Bill Shorten the 'unlosable election','' Bouris told Today.

"So if they don't want Peter Dutton to be sitting in the chair, they would they better reversing this whole decision because this is madness, absolute madness."

Nine papers this morning are saying it will potentially be 14,000 people in every electorate who this might affect and young people who use negative gearing and capital gains tax discount to break into the property market will be impacted.

"Thirty five per cent of all buyers are investors, so if you want to kill off new properties being developed by developers, then the way you do it is to bring in negative gearing, that will mean less supply, which is not where we want to be," Bouris said.

Hear what else Mark Bouris had to say in the video above.

The information provided on this website is general in nature only and does not constitute personal financial advice. The information has been prepared without taking into account your personal objectives, financial situation or needs. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs.