Analysts produce conflicting reports on Labor’s move against negative gearing

Font size :
A new report showed that Labor’s negative gearing and capital gains tax crackdown will cause a slump in sales activity of between 17 and 20 per cent. As a result, national treasurer Scott Morrison attacked Labor for not releasing modeling to back its new policies.

“Let me remind Australians what a four per cent reduction in the value of your home means. That’s about two to three years in the reduction in the principal in your mortgage you would pay off over that time, gone like that, by the stroke of Labor’s pen,” he said.

However, Labor used two reports—one from Brisbane-based consultancy Adept Economics and one by SQM Research—on its policy to hit back at government suggestions that it would force rents to rise.

According to research by Adept Economics, property prices would be four per cent lower than otherwise as a result of Labor’s changes and that an investor would face a $20,000 loss on a $500,000 unit over a decade because of lower returns produced by Labor’s policy.

Meanwhile, the SQM report suggested that the impact of Labor’s policy changes could last for two to four years, with prices falling from 2017 to 2018 if there is no interest rate cut. Lower sales turnovers could cost governments between $3.1 billion and $3.8 billion in stamp duty collections.

“Malcolm Turnbull and Scott Morrison have been telling lies about Labor’s housing affordability policy for months,” said Opposition Treasury spokesman Chris Bowen. “They don’t have a housing affordability of their own. Labor is the only major party with a policy that will see first home buyers on an even playing field with property investors.”

It can be confusing to know whether to get a variable rate or fixed rate mortgage, and what features are important. That's why it's important to not only check the right rates, but make sure that you're getting the right features in your home loan. Get help choosing the right home loan

Mortgage News and Articles

How to tell when a housing market is cooling How to tell when a housing market is cooling

You need to check clearance rates, listings, and the price gap, among other factors Read more

Growing demand for green apartments in Sydney Growing demand for green apartments in Sydney Both owner-occupiers and investors favour eco-friendly buildings for their energy-saving features and reduced environmental footprint ... Read more

Are property investors as rich as they appear? Are property investors as rich as they appear? A multi-property portfolio doesn’t guarantee easy millions ... Read more

Be proactive about getting a better mortgage deal Be proactive about getting a better mortgage deal Apathy could be costing you a considerable amount of money over the lifespan of your loan ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Sep 20, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords