Thursday, 30 June 2016

Effects of Negative Gearing on the Australian Real Estate Market

Federal elections are round the corner and we are discussing their effect on the Australian economy and thus the real estate market. 

Real estate market has majorly supported the Australian economy. As the negative gearing over the Labor’s policy is being discussed, the word is, it is to be a dangerous step for the Australian economy. According to experts, the property market in Australia is a major reliable source that distracts the attention from investment on resources and provides more employment than mining. In such times, if the Australian Dollar gets weaker, it may attract a lot of investment but is for the time being.
If we go with the numbers, then right now over a million people are employed in the property market meaning almost every eighth Australian employee is engaged in some or the other role in the Real Estate market. Hence, an adverse effect on the market will directly or indirectly affect every Australian.  Even in terms of GDP, the scene doesn’t seem very good.
Thus, if experts are concerned, it is highly recommended for voters to vote against the negative gearing incoming federal elections. If we talk about real estate markets in Sydney and Melbourne, it is believed that the price affordability there highly depends on the conclusion of the elections and the decision for negative gearing.

So overall, the scene for the real estate market in Australia is essentially dependent on what turn the election takes. For more updates on this issue or any other issue related to real estate keep visiting Steven Macaw’s blog

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