Investors in Carnegie real estate are currently benefiting from all the right policy settings, so why should any changes be introduced? This the question being posed by the Property Council of Australia, which believes eliminating negative gearing would disrupt the balance of the market.
The group referred to latest figures from the Australian Taxation Office, which show a fall in the number of total losses from investment properties. In the 2011-12 financial year, losses registered at $7.9 billion, before declining to $3.7 billion two years later.
Ken Morrison, chief executive of the Property Council of Australia, explained that the wider economy reaps the benefits of real estate investments. He noted that it helps improve job prospects, while keeping rents low for those who are unable to afford a home of their own.
“Importantly, Australians are experiencing a stable rental market due to increases in supply over recent years – 30 per cent of this supply is the result of property investors,” added Mr Morrison.
The Real Estate Institute of Australia is among those to have expressed its concern over removing negative gearing recently. It noted that the value of investment housing commitments was in decline and removing negative gearing would only worsen the situation.
Owner occupiers are currently the ones bolstering the market, whereas a more level playing field is going to be needed if investors are to benefit from Carnegie property.
Entering the market for the first time as an investor can be daunting, but with Matt Hurlston on your side, it doesn’t have to be. With years of experience pairing people with their ideal Carnegie real estate, he’s on hand to help you every step of the way. Give him a call to discuss your plans in more detail.