Australians’ love of getting one over on the tax man could see a rush of people try to enter the market... Calls to overhaul real estate standards in Victoria...
Possibility of negative gearing changes could increase investor activity
Australians’ love of getting one over on the tax man could see a rush of people try to enter the market if any plans to alter negative gearing are adopted.
Ongoing speculation around tax reform over recent months has cast the spotlight directly onto the issue of negative gearing, with it appearing increasingly likely that there will be some alterations to the scheme in the near future.
The Federal Opposition has provided some clarity to the situation, with leader Bill Shorten announcing that under the Labor Party negative gearing will be restricted to new properties only.
Investors currently using negative gearing would be grandfathered under Labor’s proposal, while the Federal Government has not announced their intentions but is believed to be considering a cap on the number of properties or amount of money that can be claimed through negative gearing.
While no changes are yet set in stone, Michael Beresford, director investment services at real estate investment advisory firm OpenCorp, said future changes could result in footrace among investors to take advantage of current arrangements.
“I think we would see an increase in investment activity prior to any changes to negative gearing being implemented,” Beresford said.
“Australians love taking something from the tax man and a lot of people wouldn’t want to miss out on that chance,” Beresford said.
Calls to overhaul real estate standards in Victoria
Poor qualification standards for real estate agents in Victoria are placing buyers and sellers at risk, according to the Real Estate Institute of Victoria (REIV).
The REIV is currently in the midst of consultation process on how to address the issue of underquoting in the state, which chief executive officer Enzo Raimondo said is “clearly impacting on members of the public” in Victoria.
But while Raimondo said underquoting is a serious issue in Victoria, he said it’s also a symptom of wider problems with educational standards within the state’s real estate industry.
“We currently have a situation in this state where a Certificate III is all that is required to sell or manage real estate,” Raimondo said.
“This is the same level as that [which is] required to work in hospitality as a waiter or barista,” he said.
You may have missed:
Building top brokerages from the ground up
Time's nearly up to have your say on the banks
What are the consequences of the investment lending crackdown?
Australians’ love of getting one over on the tax man could see a rush of people try to enter the market if any plans to alter negative gearing are adopted.
Ongoing speculation around tax reform over recent months has cast the spotlight directly onto the issue of negative gearing, with it appearing increasingly likely that there will be some alterations to the scheme in the near future.
The Federal Opposition has provided some clarity to the situation, with leader Bill Shorten announcing that under the Labor Party negative gearing will be restricted to new properties only.
Investors currently using negative gearing would be grandfathered under Labor’s proposal, while the Federal Government has not announced their intentions but is believed to be considering a cap on the number of properties or amount of money that can be claimed through negative gearing.
While no changes are yet set in stone, Michael Beresford, director investment services at real estate investment advisory firm OpenCorp, said future changes could result in footrace among investors to take advantage of current arrangements.
“I think we would see an increase in investment activity prior to any changes to negative gearing being implemented,” Beresford said.
“Australians love taking something from the tax man and a lot of people wouldn’t want to miss out on that chance,” Beresford said.
Calls to overhaul real estate standards in Victoria
Poor qualification standards for real estate agents in Victoria are placing buyers and sellers at risk, according to the Real Estate Institute of Victoria (REIV).
The REIV is currently in the midst of consultation process on how to address the issue of underquoting in the state, which chief executive officer Enzo Raimondo said is “clearly impacting on members of the public” in Victoria.
But while Raimondo said underquoting is a serious issue in Victoria, he said it’s also a symptom of wider problems with educational standards within the state’s real estate industry.
“We currently have a situation in this state where a Certificate III is all that is required to sell or manage real estate,” Raimondo said.
“This is the same level as that [which is] required to work in hospitality as a waiter or barista,” he said.
You may have missed:
Building top brokerages from the ground up
Time's nearly up to have your say on the banks
What are the consequences of the investment lending crackdown?
