If the Labor Party came to power and if the proposed gear changes were enacted, the repercussions could "affect our economy to the point of recession."
Todd Hunter, from the WHere Group, believes that changing negative leverage policies will not benefit any market sector.
Labor policy, which aims to put an end to the negative trend on all properties, except news, will in its opinion lead to further weakening of the market.
"The changes to the negative gear proposal alone will cripple our real estate markets across Australia. The proposal is to abolish negative gears on all properties unless they are new. So, persuade investors to buy new shares to empty them only when they want to sell, "he said.
"Why? Because this new property is no longer new, we therefore limit the number of buyers from a third party (investors typically represent a third of buyers) of potential buyers who will seek to buy your property. Indeed, tax breaks are only available on new properties. "
Hunter explained why non-investors, such as sellers, retirees and tenants, had to bear the brunt of the plan because any homeowner who chooses to sell his house will have smaller buyers, being given that the property is of occasion. Hunter explained that the lower number of buyers would mean less competition, which would result in lower growth.
In the same way, tenants will have to bear higher rents because fewer investors will lower the number of investment properties. As such, there will be more competition for each property.
"The pools of properties that will arrive on the market will be mainly new properties. Now, in theory, it sounds good if there were investors. Suppose there is, well, the new properties are not everywhere, thus limiting the ability of tenants to rent, "Hunter added.
This could create a situation in which new buildings or high-rise buildings are sold largely to investors seeking better tax treatment, making the entire area an area 100% occupied by tenants.
From the tax point of view, Hunter also said: "How not to allow a negative gain for a property, but also to tax on a property with a positive value?"
The changes proposed by the unions also include a provision to reduce the reduction in capital gains tax (CGT) from 50% to 25%, which "is by no means a slight tax increase, "Hunter said.
"On a profit of $ 200,000 on the sale of a property, the taxable amount increases by $ 50,000.
So, when we pay the stamp duty, then the CGT, the government levies a huge percentage of any profit that a property can make, "he said.
Do you have more than $ 200,000 in your super fund? You Can Use Your Super To Buy A Property – Find Out How
Top suburbs:
Westmead
,
crossing of ropes
,
Torrensville
,
North Epping
,
Leumeah
Get help for your real estate investment
Do you need help in finding the right loan for your investment?
When you invest in real estate, it's important to make sure that you do not just have the lowest available rate that you can get, but you also have the features of ready adapted to your needs.
Just fill in a few details below and we will then do what is necessary for an Australian mortgage broker to contact you and establish a solution. What features or types of loans are suitable for your needs? We will even help with the paperwork. In addition, an appointment is free.
We value your privacy and treat all your information seriously – you can check
our privacy policy here
