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Majority of investors to pull out of property if negative gearing removed: REIQ survey

The Grattan Institute Report and the Labor Party Policy have caused serious concerns for property investors.  This is an REIQ survey of current investors and they are upset.  What it doesn’t consider is the number of people wanting to invest in property as part of their wealth creation strategy.  Up to 50% of people want to invest in property at some stage, either through SMSF or directly, to create wealth for their future according to various surveys.

Property will still be a performing asset through the leveraging money through borrowed from the bank compared to non leveraged assets, and the talk is only of negative gearing not depreciation though the dye seems to be cast.

“A majority of property investors would abandon property as an investment strategy if Labor’s negative gearing changes were brought in, according to the results of a survey across Queensland.  The survey of REIQ membership and its landlord clients found that 79 per cent of property investors would get out of property in such a scenario, said a media release.

REIQ Chairman Rob Honeycombe said the findings confirmed that changes to negative gearing would be disastrous for the Queensland property market.”

 

http://www.propertyobserver.com.au/forward-planning/investment-strategy/property-news-and-insights/53060-reiq-survey-79-of-investors-will-abandon-property-if-negative-gearing-is-abolished.html