The REIA has reiterated its strong opposition to the Labor Party’s negative gearing and capital gains tax policy, following the announcement that 1 January 2020 would be the start date for their negative gearing and capital gains tax increases if they were to win the federal election.
“The REIA has always been concerned with the impact the policy would have on housing markets, buyers, renters and economic activity,” REIA President Adrian Kelly said.
“There is almost truck loads of analysis and reports showing the adverse impacts of the policy on mum and dad investors, home owners, renters, the construction industry, state governments and the economy.”
Mr Kelly referenced recent SQM Research figures which suggest house prices would drop between 5 per cent and 12 per cent on a weighted average for the capital cities from 2020 to 2022.
The same report expects rents to increase by between 8 per cent and 15 per cent on a weighted average for the capital cities for 2020 to 2022.
“For first home buyers who, according to Labor, should see improved housing affordability by a ‘levelling of the playing field’, [they] will now face a faltering economy, lower employment prospects, the possibility of higher interest rates under a Labor Government and higher rents whilst they save for a deposit,” Mr Kelly said.