Labor’s promise not to tamper with negative gearing is a relief but there’s more to the buying surge.
and supply shortages, with the value of new investment loans doubling to around $11 million over the 12 months to end-March.won’t change generous tax perks and despite rising interest rates driving up costs and pushing down prices. They’re also attracted by stronger demand from rising immigration and the return of overseas students.
Gross rental yields range from 6 per cent in Darwin, 3.8 per cent in both Canberra and Perth and 3.5 per cent in Adelaide to 2.8 per cent in Melbourne and 2.5 per cent in Sydney, according to CoreLogic, which monitors property prices. Labor is attempting to marginally ease the rental crisis by boosting supply through a $10 billion Housing Australia Fund to build 30,000 social homes over five years, and a Help to Buy scheme with the government taking up to 40 per cent equity in around 10,000 first home purchases.The Greens, who hold the balance of power in the Senate, want property investors to be allowed negative gearing for only one property.
Growth in housing approvals is rising but is unlikely to resolve the nation’s predicted housing shortfall, according to analysis by the National Housing Finance and Investment Corporation. Investor demand is also competing with rising interest for existing homes from owner-occupiers, she says. Apartments are typically more popular with investors than houses in major cities, because they are usually cheaper, cost less to maintain and offer higher yields compared to detached houses, says Patrick Bright, a Sydney-based buyers agent.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Goodbye to the age of rage: why Piers Morgan’s outrage journalism is flopping | John HarrisWith sobering crises like Ukraine and the cost of living, it’s no surprise the appetite for venting behind a microphone is waning, says Guardian columnist John Harris
Read more »
Why lifting the minimum wage is anything but recklessLow-wage earners are going backwards. Here's why they deserve an increase in the minimum wage by $1 an hour from July 1, writes Peter Martin.
Read more »
Why Bridget Archer is the jewel in the Libs’ tarnished crownThe re-elected member for Bass has shown her mettle both in the party room and in her electorate. She is now key to a moderate, Liberal revival. | Jenna Price | OPINION auspol BridgetArcher
Read more »
Why experts fear only a fraction of COVID-19 cases are being reportedAustralia has the highest per capita rate of COVID-19 infections of any comparable country in the world, but pathologists fear they do not have the full picture. 7NEWS
Read more »
Why Jamie Dimon says it’s different this timeOPINION: JP Morgan chief executive Jamie Dimon says the ‘storm clouds’ over the global economy can dissipate. But don’t get too excited – he still thinks we’re in unchartered territory.
Read more »
Why Coalition and Labor may never win back the seats they lostThese monumental shifts in how Australians vote aren’t just a short-term “protest”. They reflect a growing detachment among millions of Australians from politics as usual. | OPINION by oz_f auspol ausvotes
Read more »