There won't be any changes to the policies surrounding negative gearing, the federal government has announced, bringing good news to many people who've invested in real estate in St George.
Some groups had raised concerns that negative gearing was favouring the wealthiest investors, but the Property Council of Australia has been keen to dispel this belief. Ken Morrison, chief executive of the organisation, said the news would be welcomed by the country's two million investment property owners.
"The government is doing the right thing by the 1.2 million Australians who negative gear. This includes over 770,000 Australians who have taxable incomes of less than $80,000 a year," Mr Morrison commented.
The Property Council emphasised that people are already facing high property taxes, so any strategy that enables them to invest in real estate without worrying about extra charges should be welcomed. Negative gearing helps keep the market active, while giving people an extra incentive to buy real estate in St George.
Another group to have praised the news is the Housing Industry Association, which believes negative gearing encourages private investment in the residential rental market. It emphasised that allowing negative gearing means there are more options in terms of rental property, while giving people a retirement income they can rely on.
As the country's population ages, Australians will be looking for new ways to fund their post-work lifestyle – and negative gearing is an option for many of them.
Whether you're an investor or owner occupier, it's essential to use an experienced agent when looking for real estate in St George. Ray White Carlton has been helping buyers for many years and is on hand to help you make sound investment decisions. Give us a call to find out more.