By Tim McKibbin, REINSW CEO
If they win the Federal Election, Labor has promised to abolish negative gearing for investors buying existing properties. They are also committed to halving the capital gains exemption to 25 per cent.
Now, with Australia experiencing the steepest housing downturn since the GFC, is the worst possible time for this.
Analysis from SQM Research provides evidence of the startling impacts of the policy. House prices across capital cities will decline between 5–12 per cent and rents will increase between 8–15 per cent by 2022.
Housing construction will fall by 20–35 per cent, having employment impacts. Property sales turnover will drop a further 12–15 per cent, impacting stamp duty revenue by around $2.3 billion – money that could be spent on schools and hospitals.