Over the past 10 days you have probably read articles about the real estate industry’s campaign against Labor’s plans to significantly change negative gearing rules as it applies to investment property.
PRDnationwide have joined the other major real estate groups in our opposition of any changes to the current law. When negative gearing was abolished in the mid ‘80’s, rents rose dramatically and investors deserted the market. At that time the Government hastily re-introduced negative gearing when they realised the detrimental impact it had on renters and the market in general.
Whether you are a Tenant, Landlord, Buyer or Seller NEGATIVE GEARING DOES AFFECT YOU! For those that are current Landlord’s you’ll still be able to negative gear your property – the changes will only affect people who buy after July 1 next year.
Economists do say that if the planned changes to negative gearing do go ahead, property prices will fall, but not by enough to make it much easier to put together a 20% deposit on a first home. The fall in property prices will decrease the value of 18 million Australian’s super funds (therefore impacting retirement), while rents will rise by up to 10% in certain areas. There’ll also be more Government revenue lost than saved, unemployment will rise and our whole economy will be in jeopardy. Does that sound appealing? It’s important that all Australians understand what’s really going on with this debate.