Will negative gearing tax concessions for real estate be axed?
Will negative gearing tax concessions for real estate be axed?
The question has come up again – Will negative gearing tax concessions for real estate be axed? In my opinion there will be consequences if negative gearing tax concessions for real estate are axed.
The Council for Homeless Persons has compared the average weekly female wage for Victoria – $842 per week, which includes part-time and full-time workers – with median weekly rents by suburb. It shows that only Melton, a 40 minute drive north-west of Melbourne’s central business district is considered affordable, with a median weekly rent of $245 for a two bedroom house. There is no rail connection with Melbourne in this suburb meaning people living there probably need to own and be able to afford to run a car.
If tenants want to be closer to Melbourne and have rail access then Werribee, Pakenham, St Albans or Sunshine would , with median rents of between $270 and $280 per week or 35 more could put the family into “rent stress”.
Why should negative gearing for property stay?
These figures reinforce how terrible the consequences would be if the government abolishes incentives for private investors to buy residential real estate and rent it out to tenants. At Buyer Solutions, we feel very strongly that this would be a poor decision by any sitting government.
Incentives to invest in property should be encouraged to provide more rental housing stock for those who rent and to moderate indexing rentals.
At Buyer Solutions our rental vacancy rate is under 2% most weeks of the year and rental properties are snapped;up, sometimes with 20 to 30 applications remitted after one rental open. Anyone needing help managing and leasing their property can contact us for advice and assistance at rentals@buyersolutions.com.au. Find out more about our rental services here.
For up to date information on what’s happening in real estate in Melbourne, contact Janet at jspencer@buyersolutions.com.au or 0418 101 146.
Buying property, Housing Affordability, Housing Market, Investment, Investment property, Rental Solutions
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