NEGATIVE GEARING BACKED
A RECENT survey of WA property investors found 72 per cent of respondents negatively gear their investment properties.
The Real Estate Institute of Western Australia survey also revealed that of those investors who negatively gear, 76 per cent owned just one or two investment properties, which REIWA president Hayden Groves said indicated the majority of investors were everyday West Australians with small property portfolios.
The REIWA survey also revealed more than half the respondents earned a gross salary of less than $100,000, further highlighting that negative gearing is a tax arrangement that provides benefit to low and middle-income earners across WA.
“These results show us that property investment is for everyone and provides an opportunity for all West Australians to secure their future,” Mr Groves said.
As part of the survey, investors were also asked what industry they worked in.
Business and human resource was the most common response from the sample size of 352 respondents, with 23 per cent of respondents selecting this industry group.
The top five industry groups in WA whose employees invest in property were: 1. Business and human resources: 23 per cent 2. Mining and engineering: 17 per cent 3. Construction and building: 13 per cent 4. Health, education, social and welfare: 11 per cent 5. Public service: 11 per cent.
Mr Groves said the findings debunked the myth that property investment and negative gearing only assisted the wealthy.
“We can see that West Australians employed across a whole range of industries negatively gear their investment property,” Mr Groves said.
“We hope these findings provide further insight into why we want negative gearing to be retained in its current form or, alternatively, a review of the entire tax system be carried out.
“The proposed changes to negative gearing will have an impact on the everyday West Aussies who are trying to get ahead.”