The Real Estate Institute of Queensland (REIQ) is alarmed by reports today suggesting that the Federal Government may be considering changes to negative gearing.<\/p>\n\n\n\n
REIQ CEO Antonia Mercorella emphasised the potential repercussions of such changes, particularly in the current housing climate.<\/p>\n\n\n\n
\u201cAs repeated studies have shown, there is a minimal link between negative gearing and higher house prices,\u201d Ms Mercorella said.<\/p>\n\n\n\n
\u201cTo make a major change to the rental sector during a time of low vacancy rates across Australia and long social housing waitlists could be catastrophic for the housing sector.<\/p>\n\n\n\n
\u201cIt would be unwise for the Federal Government to seek to eliminate what is essentially a straightforward tax deduction for property investors.<\/p>\n\n\n\n
\u201cAbolishing negative gearing would eliminate a range of economic benefits, fail to tackle housing affordability, and impact everyday Australians the hardest.\u201d<\/p>\n\n\n\n
Ms Mercorella pointed out that abolishing or altering negative gearing could exacerbate existing pressures on the rental market, further straining households that are already grappling with rising living costs.<\/p>\n\n\n\n
\u201cIt is particularly disappointing given the new Federal Housing Ministers\u2019 statement in August that the government had no intention of changing the current negative gearing system,\u201d she said.<\/p>\n\n\n\n
\u201cThe housing market requires stability and predictability, especially in these challenging times.\u201d<\/p>\n\n\n\n
The REIQ urges the Federal Government to consider the implications of such changes and to engage in meaningful dialogue with stakeholders to ensure the sustainability of the rental market.<\/p>\n\n\n\n