Professionals Richmond The Real Estate Institute of Australia, the peak body for real estate in this country, is in a stoush with the Gillard Government about retaining negative gearing for property investment in its current form.
In the lead up to the Federal Budget there are concerns that negative gearing is “only for wealthy investors” and The Professionals group, along with REIA say that this is a myth.
We know of countless hard-working couples and families who are trying to do the right thing now by building their assets in order to not be a drain on the Government for pensions during retirement. Using investment property is a solid foundation for building future wealth.
In both metropolitan and regional areas, there are many mums and dads who already have exposure to the share market through superannuation funds (many of which, haven’t been doing that well for some time) and property is a way to diversify their investment portfolio.
While bank interest rate cuts are good for people with mortgages, the downside is in retirees with investment savings in term deposits or bank deposits, because their rate of return dives.
“This thought that all Landlords own streets of investment properties is a myth,” said Ted Piteo, CEO of The Professionals. “Many people have one property, or two. 80% of those people who claimed tax deductions for property earn less than $80,000. They are playing their part in providing safe, affordable rental accommodation for the thousands upon thousands of people who require a roof over their head, and who otherwise would have to wait for some type of Government housing.”
We would say, if it ain’t broke, Ms Gillard… please don’t fix it!