“Mr Husic says under Labor, Australians will see a resurgence in new home construction, more jobs, and less influence from investors who make it harder for first home buyers”.
Source: The Advertiser
In March, we quoted a report from SQM research which said that:
“property prices will fall nationally between 5-12% by 2022 if Labor scraps negative gearing for existing properties and halves the CGT discount from 50 per cent to 25 per cent [but] house prices will rise 8-14% if no changes are made”.
Which planet is Husic on? Everyone knows that property prices were overheated and prices have fallen due to tighter lending controls by the Banks, the APRA and the RBA.
In another report, Treasurer Josh Frydenberg warned that a Labor-initiated
housing market collapse could destroy small businesses and hit family budgets. The fall in house prices would harm the wider economy, and in particular, small business owners that took out loans against the value of their houses.
It is likely that the market is already ANTICIPATING a Labor government.
In another report in March, modelling from PIPA (Property Investment Professionals of Australia) showed that
by limiting negative gearing and reducing the CGT discount, the government would lose $32 billion in revenue over 10 years.
And now this report from the HIA:
Labor’s CGT and negative gearing policies
“With 92% of all renters aspiring to buy their own home, Labor’s proposed changes will weigh heavily on their savings’ plans”. “If these changes are made, rents will rise as supply dries up due to a lack of investment in new housing. This will make renting a home less affordable”.
“If rents rise, renters saving for a deposit for their own home will take a backward step”. “These changes are anti-investment”. “They fail to recognise that private rental accommodation provides homes for almost three million families and reducing the supply of private rental homes will only lead to an increase in rents.
Source: HIA report