A recent survey of WA property investors found that 72 per cent of respondents negatively gear their investment property. Of those investors who negatively gear, 76 per cent owned just one or two investment properties which REIWA President Hayden Groves said indicates that the majority of investors are everyday West Aussies who hold small property portfolios.
The REIWA survey also revealed that more than half the respondents earn a gross salary of less than $100,000, further highlighting that negative gearing is a tax arrangement which provides benefit to low and middle income earners across WA.
"These results show us that property investment is for everyone and provides an opportunity for all West Aussies to secure their future," said Groves.
As part of the survey, investors were asked what industry they worked in. Business and human resource was the most common response with 23 per cent of respondents selecting this industry group.
Top five industry groups in WA whose employees invest in property:
- Business and human resource – 23 per cent
- Mining and engineering – 17 per cent
- Construction and building – 13 per cent
- Health, education, and social and welfare – 11 per cent
- Public service – 11 per cent
Groves said that these findings debunk the myth that property investment and negative gearing only assists those who are wealthy. "We can see that West Australians employed across a whole range of industries negatively gear their investment property,” he said. “We hope these findings provide further insight into why we want negative gearing to be retained in its current form or, alternatively, a review of the entire tax system be carried out. The proposed changes to negative gearing will have an impact on the everyday West Aussies who are trying to get ahead."
Property investment important to Western Australians