While a Morrison government would leave things as they are, Labor has pledged to upset the apple cart in order to “help housing affordability” by reforming negative gearing and capital gains tax arrangements.
But in a recent realestate.com.au article, the group’s chief economist Nerida Conisbee said changes to negative gearing would affect Aussies differently,According to Ms Conisbee, the ALP policy would be “bad news for ‘mum and dad’ investors”, especially people hoping to snap up an investment property for the first time.
“ … given renters tend to be younger, poorer and more likely in housing stress, even small increases can be problematic,” she wrote, claiming that over time, rental properties could also end up being concentrated in new housing areas.An ALP win could be good news for developers and first home buyers. Picture: iStockOf course, the big winners of the potential change would be our beleaguered first home buyers.
Ms Conisbee said that “price falls aren’t particularly bad for upgraders and downsizers” — meaning that while their current home might fetch a lower price, they’ll also manage to score their new property for more of a bargain, meaning that this demographic won’t be overly affected by any changes.Another big winner of the ALP plan would be developers, as the policy has been created to encourage new building.
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