“While rental stock is at healthy levels now, limiting supply in the long term will put pressure on the Government’s social housing system which is already strained despite being well supported by the private rental market.” In the latest survey by REIWA, respondents were asked if they felt the restriction of negative gearing to newly built homes only, would limit their housing choices.
47 per cent of respondents looking to buy felt their choice in property would be limited if negative gearing was restricted, 33 per cent said it would not be limited and 20 per cent said they weren’t sure.
“The proposed changes to negative gearing are very much based on the behaviour of markets in the Eastern States, like Sydney and Melbourne, and aren’t taking into consideration slower markets like that of Western Australia,” said Mr Groves.
“Our public discussions with the WA community have reaffirmed the need for broader tax reform where the system is simple, fair and efficient, rather than tinker with one part of what is a very complex system.
“No matter what the outcome of the Federal Election, we’ll be continuing our discussions with all political parties to ensure that the benefits of property investment for all West Aussies are considered during any future tax reform.”