Negative about Negative Gearing?
In recent times there’s been much negativity about negative gearing. Is it here to stay? Experts say that there’s no reason to feel negative about negative gearing as the industry regularly debates its future which always seems to ends where it starts. According to one property expert future changes to negative gearing is unlikely to result in any charges.
The Greens have proposed that negative gearing be scrapped with the increase in tax revenue to be reinvested in building affordable housing. Property expert Sam Saggers from Positive Real Estate believe that the plans add to a list of ideas that have never taken off.
“Ever since negative gearing was introduced people have been talking about things like this, this is nothing new compared to what we’ve been hearing for the last 20 years,” Saggers said.
“I don’t have a crystal ball, but I don’t think the government is going to do anything at all to it.”
The perception with negative gearing is that investors use it to avoid paying their fair share of tax, Mr. Sagger believe this isn’t the case and it’s not a huge benefit for every investor.
“The people who are getting the real benefit out of negative gearing are the investors who have five, six or seven or more properties and I think the ABS had statistics that there’s only about 15,000 of them in Australia,” he said.
“Most people own their own home and one investment property if they’re lucky and negative gearing might save them $4,000 or $5,000 a year.”
The Real Estate Institute of Queensland believes The Greens plan will turn investors off housing and result in housing stocks dwindling, something Saggers agrees with.
Contact us today – Nathan Vecchio – 0410 000 689