Survey Insights On Effects Of Negative Gearing Changes

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A new survey reveals forty-nine per cent of investors have said they will be less likely to invest if negative gearing changes under the ALP's new policy.

More interestingly, the survey indicates that almost half of the investors' response to the proposed negative gearing changes is to increase rent, whereas only about a quarter would consider investing in new property. This contradicts the motivation behind the policy changes to redirect investor demand away from established dwellings to place downward pressure on prices and make it more affordable for first-home buyers.

Ultimately, the survey highlights the high probability of rent increasing if Labor's proposed changes to negative gearing take place; firstly because there will be fewer built-to-rent dwellings available, and secondly because investors will increase the rent on their established investment property to offset any losses that can no longer be claimed.

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