Recognised as a stable form of investment, one in every 12 Australians puts their hard-earned savings into a tangible asset — property.
Queensland property investors help make up our estimated $1.5 trillion strong residential real estate industry — generating over $10.7 billion in gross rental income — and contributing to the economy through stamp duty, legal fees and real estate agent fees.
Proposed reforms to Capital Gains Tax and Negative Gearing have the potential to unravel what’s considered the safer investment option, increasing uncertainty among investors and impacting their ability to plan their financial futures.
The potential impact is only compounded when you consider that self-managed super funds use the current system to drive financial independence in retirement.
Investors will likely flee the real estate market.
The proposed reforms not only create uncertainty, but instability in the market.
A national exit from the market could see house prices fall by up to 12 per cent. In Brisbane, this could see the average home — valued at $675,000 — lose as much as $81,000 in value, forcing owners into a negative equity financial situation.
The projected losses associated with this type of market downfall are not insignificant — the Queensland economy could see a dent of $2.3 billion through loss of stamp duty revenue alone, putting a big hole in the government budget.
With the proposed reforms threatening to destabilise our real estate industry, we want to make sure the impacts to Queensland — and Queenslanders — are considered.
The REIQ is having conversations for our industry to ensure all potential impacts are considered within the proposed reforms.
Support us, your fellow property owners and investors by standing for stability and registering your impact here.