Tenants maybe walking into the polling booths worried about if their rents will go up or not?
About one in four dwellings in Australia are owned by investors, if negative gearing on investment properties is played with too much, investors maybe less likely to purchase or build a property as an investment.
This would restrict the amount of properties that will be available for tenants to rent. Supply verses demand all ways lifts the prices, and therefore rents may go up.
According to the latest HTW report, the Cairns vacancy factor over the last six months has been tightening and for houses in April 2016 stood at 2%. Units stood at 1.9%.Our local building construction industry could also be hit with a downturn as well as investors decide to not invest in new properties.
Of course if negative gearing is available only on newly constructed properties, this may stimulate the housing construction industry, this could be a positive for the local building industry.
We have a number of great developers in the Cairns area, who help keep our town ticking over, hopefully negative gearing is kept for all properties and at very least newly constructed investment properties. This will help tenants, owners and our beautiful city.