Ten­ants to bear costs of changes

The Weekend Post - Real Estate - - Front Page -

TEN­ANTS may be walk­ing into the polling booths this week­end wor­ried about whether their rents will go up or not. About one in four dwellings in Aus­tralia is owned by in­vestors. If neg­a­tive gear­ing on in­vest­ment prop­er­ties is changed, in­vestors may be less likely to buy or build a prop­erty as an in­vest­ment. This would restrict the num­ber of prop­er­ties that will be avail­able for ten­ants to rent. Sup­ply ver­sus de­mand al­ways lifts the prices and there­fore rents may go up. Ac­cord­ing to the lat­est Her­ron Todd White re­port, the Cairns va­cancy fac­tor over the past six months has been tight­en­ing and for houses in April 2016 stood at 2 per cent. Units stood at 1.9 per cent. Our lo­cal con­struc­tion in­dus­try could also be hit if in­vestors de­cide to not in­vest in new prop­er­ties. Of course, if neg­a­tive gear­ing is avail­able only on newly con­structed prop­er­ties, this may stim­u­late the hous­ing con­struc­tion in­dus­try and this could be a pos­i­tive for the lo­cal build­ing in­dus­try. We have a num­ber of great de­vel­op­ers in the Cairns area who help keep our city tick­ing over. Hope­fully neg­a­tive gear­ing is kept for all prop­er­ties and, at the very least, newly con­structed in­vest­ment prop­er­ties. This will help ten­ants, own­ers and our beau­ti­ful city.

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