All commentators agree there is uncertainty surrounding the removal of Negative Gearing and the likely effects of this policy on your home (whether you own it or rent it). South Australia is worst-placed to force such uncertainty into our economy because of our reliance on all kinds of sound investments.
Removing Negative Gearing is an overtly eastern states policy, being forced on South Australian home owners, renters and investors because of large increases in house prices in Australia’s two largest capital cities. The removal of Negative Gearing is short-sighted and ill-conceived. Hands off South Australians’ homes. Don’t let politics trespass on your property
Existing SA Home Owners
Congratulations. You’ve worked hard to put a roof over yours and your family’s head. The removal of Negative Gearing would mean less people wanting to buy your home, namely potential investors. This would lead to a poor result on the value of your nest egg.
Existing SA Investors
You’ll want to and need to hold on to your investment even longer due to the fatality of selling after Negative Gearing has been abolished – a two tier taxation system will apply after removal of Negative Gearing and once sold, then Negative Gearing can never apply to that established house ever again. You’ll want and need to try and get a premium price in order to offset the removal of the taxation consequences.
New Home Buyers
Unfortunately, you’ll be forced to compete with even hungrier investors that will need to buy and build new residential homes to access Negative Gearing in areas that are traditionally prime targets for you as a first home buyer, such as new housing estates…
Because the incentive to buy property to rent out will be severely curtailed for established houses, fewer people will buy residential investments, meaning the supply of rental stock will contract: fewer houses means higher rents.
Community Housing Organisations
Because of all of the above, your critical services will come under even more stress and strain.
When you vote, vote to protect Negative Gearing.