Labor's negative gearing changes will force property prices down and rent up, study says

A new report says Labor's planned rollback of tax breaks for property investors will lead to lower property prices and higher rents.Study estimates national property prices to fall nationally between 5 and 12 per cent by 2022Study found house prices to rise between 8 and 14 per cent if no changes made

Under an alternative scenario with no changes to tax breaks for investors, but where the Reserve Bank cuts interest rates by half a per cent, they predict property prices would rise between 8 per cent and 14 per cent over the same period. The rental yield on a property is a calculation which measures how much cash an investment is generating, as a percentage of that asset's value.

Who or what are SQM?

U don't need research just common sense which seems to be missing.

SQM residential property investment spruikers. Perhaps next 'research report' ABC will publish can be from Count Dracula Consulting explaining why vampires should be put in charge of Red Cross blood banks?

Horribly biased and poorly researched. It took 5 seconds to find where this report has been debunked. It is actually recycled and touched up from a similarly debunked 2016 report. auspol

Crap

lack of strong regulations and tenant rights forces rents up not falling property values do you people even bother doing a basic common sense test before publishing this propaganda or you have just given up on any kind of journalistic integrity at all?

It took me a minute to understand. Negative gearing reform will force prices down AND LANDLORDS WILL JACK UP RENT. So ultimately personal greed will cause rent to increase. Owners bought a thing they could not afford will need more dollars to pay a loan they should not have.

Wow ABC.

. Hang on... I own a rental property and I want a higher yield. So according to this article I can simply 'demand' it. That was my problem, I wasn't demanding higher rent - instead I was adjuating the price to what the market would pay. Silly me. Next time I'll just demand it.

Let’s down to bearable price, pls

. Pathetic. Whoever wrote this has never owned a rental property and possibly never paid rent. What a joke. .

No surprise here. Paul Keating found that out in the 80s and quickly back flipped the decision in 6 mths.

Study by who , publish it. ABC no shame.

Aren’t property prices coming down now My rent goes up continually. Wow who paid for this?

In sydney and Melb no affect anywhere else

Such shoddy reporting. A study funded by property speculators which has already been discredited.

MichaelTiyce No sh!t sherlock. They did this in 60s or 70s I think and rents double/triple overnight. Just a note, as I have always outlined, negative gearing is like a discount on rental.

Total BS... The market determines the price, not sellers. If landlords push rent prices up, and renters can't afford the price, rent prices will drop (lest the property stand vacant)...

Do the math guys! Without negative gearing, either price down or rent up, or both, to fill the gap, to make investing in rental market viable. With housing shortage as the backdrop, what do you think would happen?

Utter garbage.

What A lot of bull shit

Is that the line we are running today?

Rubbish

Hyperbole

Over 250 economists point out that these claims are not supported by the facts. If states and federal gov't invest in social housing rent pressure will ease. Stronger banking oversight will correct the housing market. Stop spreading Real Estate Institute lies abcnews

So depressingly sad what's become of our once great ABC.

Not the other study that said it'll have negligible impact though....because let's face it, this scares better.

Property prices going down isn’t such a bad thing . At least young family’s might be able to afford to buy a place and maybe not have the pressure of higher repayments

Um...who wrote the report? Vested interests much?

Just cos someone releases a report does mean you have to cut and paste it as fact. How about a little background on the potential bias / agenda on the reporting group? For a rebuttal see below. Which will also have an agenda / bias.

okay so introduce rent control and to hell with the free market which is about greed.

Doesn’t sound like a very objective piece ABC, considering your mission.

so over your partisan news coverage start reporting for all Australian not just attacking Labor

Took me 3 secs to find who this lot are “SQM Research is an investment research house which specialises in providing accurate research and data to financial institutions, investment professionals and investors.” What a shit post

If that is the case it will definitely be a one term labor government. auspol

Except that it won't. The changes are grandfathered.

ExSydney Keating tried it and it ended up a monumental disaster. People stopped investing, rents skyrocketed and the rental market started to dry up.

All the negative gearers quoted for these articles seem to forget or be unaware of the fact their tax arrangements on their existing properties are going to be grandfathered and they can even sell and continue to negatively gear if they do it on a new build.

Stop insulting our intelligence

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