As a Real Estate Agent with over 40 years in the Industry I feel compelled to respond to the misinformation being pedalled by politicians, and parties close to the industry with vested interests. I have to declare up front I have taken advantage of Negative Gearing & Capital Gains tax and growing my retirement nest egg and have to say Real Estate has been very good to me. But do I think it's time for changes yes I do.
There has been some great articles from Rob Burgess The NewDaily who referred to Liberal backbencher John Alexander who is the only one from the Coalition side showing any real concern for the plight of first homebuyers. Also Shadow Treasurer Chris Bowen has a good understanding of the problem.
Ross Gittins is the Sydney Morning Herald economics editor who stated in his article dated 8th of March suggesting "Politicians have worked hard to make houses so dear"
Now we have some REIV members critical of Andrews Govt "Vacant Residential Property Tax of 1% which in my opinion is one of the best proposals to come from any Govt in Australia to assist with housing and rental Affordability. For far to long politicians have talked about housing supply, well this proposal can only help. Also Andrews Govt is abolishing stamp duty up to $600,000- which assists first home buyers to the value of $15,535- and doubling the 1st home buyer grants to $20,000- in Regional Victoria. These are great initiatives coming from a Govt that understands the problems of housing in Victoria.
Australia needs leadership from the Federal Govt in the way of changes to Negative Gearing and possibly Capital Gains tax and I am to be convinced of those changes from 50% to 25%? Malcolm Turnbull and Scott Morrison know it's the right thing to do as did Joh Hockey. They increase revenue as we have all heard about debt & deficit. It's time for the good of the country need put their opposition and ideology to one side and stop coming up with artificial use of occupations like we've heard of teachers & nurses etc, the truth is Surgeons & Anaesthetists are the top 2 occupations. According to ATO data there are 1.26mil (approx10%) taxpayers who Negative Gear, and claimed approx $11 billion in tax deductions.
The Grattan Institute indicated in 2016 NG wind backs could deliver approx $5.3 bil a year. Peter Martin from the Age suggests that taxpayers who NG cost other taxpayers an average of $310-
It has been suggested that the average amount of tax saved by each of the 1.2 million NG was $2900-
Time for those with vested interests to accept that change is necessary to make housing more affordable so if you have a positive suggestion then now is the time. The status quo is no longer acceptable and I love the idea of NG being available on new property which is a win win for first home buyers not having to compete against investors on existing housing and also great for the housing industry in creating jobs.
This is far to an important topic to be a political football, it's time to think of those locked out of the housing market.
Licensed Real Estate Agent.