Current policy settings are just right for anyone hoping to invest in Pascoe Vale real estate, but this might not be the case for much longer if negative gearing is sidelined. This is the opinion of the Property Council of Australia, which believes this type of action could cause more harm than good.
The group analysed the latest figures from the Australian Tax Office, which shed light on how many investment properties have made losses. In the 2011-12 financial year these losses stood at $7.9 billion, falling to $3.7 billion by 2013-14.
"Investment in property is driving jobs, growth and keeping rents down. At the same time, there is absolutely no evidence that negative gearing is being abused," said chief executive of the Property Council Ken Morrison.
"The potential budget impact to taxpayers of negative gearing has fallen by over 50 per cent in two years."
Efforts need to be made to improve access to investment real estate in Pascoe Vale, not to create roadblocks, the group stressed. This sentiment has been echoed by the Real Estate Institute of Victoria (REIV), which also believes negative gearing has an important role to play.
REIV President Geoff White explained that vacancy rates are already struggling across the state and putting any type of restriction on negative gearing would only worsen the problem. This is especially true in inner city areas where rental properties are already in short supply.
One of the main issues is that changes to negative gearing are most likely to impact those who need help in the housing market, rather than serial property investors. The facts need to be analysed before any final decision is reached.
Thinking of investing in Pascoe Vale real estate? Make sure you give the team at Ray White Brunswick a call to show you exactly what's available.