Tenants to bear costs of changes
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.