A group of prominent northern suburbs property agents met at Parliament house in Perth on Monday to share ideas on current and proposed property policies.
The real estate experts were invited by Federal Member for Moore, Ian Goodenough MP, to a round table lunch where they could voice their thoughts, concerns and ideas on issues including negative gearing, capital gains tax, stamp duty, first home owner’s grants and other issues that may affect home owners and investors in the area.
General Manager of Davey Real Estate, Andrew Davey, surveyed a sample of his landlords and the data collected clearly showed how changes to negative gearing are a major concern for them.
“I was quite surprised to learn just how many investors would reconsider their purchase or plan to increase the rent on their properties if negative gearing was abolished.” Mr Davey said.
“The last thing renters need is for their cost of living to increase which is the flow on effect of what would happen if labour abolishes negative gearing” Mr Goodenough said
“The proportion of people negatively gearing in Moore is the third highest in Australia, so this is an issue that is of great concern for my constituents.”
“They are average wage and salary earners investing for their future.”
A robust discussion was also had around Labor’s proposal to reduce the capital gains tax concession from 50% to just 25% - meaning that 75% of capital gains will be taxed at a person’s marginal tax rate.
John Kemsley, Managing Director of Platinum Realty Group said “I see so many people, especially the older generation, holding onto properties because they are concerned over the amount of capital gains tax they will pay if they decide to sell. An increase would only put pressure on an already slow market here in WA. I would like to see capital gains incentives for retirees looking to downsize which I think you would find would provide a stimulus to the market.”
“I also believe the first home owners grant should be expanded to include established properties. I believe this would create a knock on effect and stimulate the second and third home owner market.” Mr Kemsley said.
“The lunch was a great opportunity to have a constructive discussion with our Federal Minister who was very keen to hear the feedback we are getting from the public.” The Agency’s, Harley Burke said.
“Property investors are echoing just how important changes to negative gearing and capital gains tax would be to their decisions in either selling or purchasing another property.”
“I found it invaluable to be able to talk with my peers about issues affecting our industry as a whole. I am grateful to Ian for the opportunity to have our thoughts and opinions heard in this forum.” Noble Avenue’s, Linda Noble said.
The consensus among the agents was that the status quo should remain with existing taxation policies on negative gearing and capital gains tax relating to real estate.
“It was good to hear the views of the industry representatives” Mr Goodenough said.
“I will be campaigning strongly to maintain the status quo for certainty in the market.”
Media Contact: Taryn Smith 0413 735 553