According to a new study, the Labor Party's plan to change the negative gear could increase the cost of renting Brisbane from 13% to 22% between 2020 and 2022.
The conclusions were based on a scenario with no reduction in interest rates, an increase in rental yields and a change in tax breaks on the negative reduction of debt and capital gains, according to a news.com report. in.
If the central bank did not lower interest rates this year or early in 2020, rents in Brisbane are expected to rise from 12% to 19%, according to the study.
"This tax change will aggravate the problem of under-supply, because we believe that investors will actually be put aside. Tax relief on capital gains will actually be cut in half and will require higher rental returns, "said Louis Christopher, General Manager of Research at SQM Research.
The Labor Party's proposal is to limit tax breaks to the negative conversion to new properties and to halving current capital gains on capital gains for real estate investors.
Even if no changes are made, Brisbane rents are expected to increase by 3% to 4% by 2019, according to Christopher.
"In our opinion, Brisbane will increasingly be transformed this year into a homeowners market. The period of glut that Brisbane experienced between late 2014 and 2018 is coming to an end, so the problem is that Brisbane is entering a period of under-supply. We think it will start next year and we are already starting to see rent increases now, "he said.
Data from the Queensland Real Estate Institute (REIQ) show that more than one-third of the state's population is renting number of people seeking to invest in real estate in the Queensland
"More than 34% of the population rents in Queensland, so it's crucial to find rental housing," Mercorella said.
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