In this edition
Federal Government and the negative gearing question
Population and policy - rich bounty for investors
Lot Sizes and Amenity Demand - the next 10 years
Proptrack Home Price Index results - October 2024
Off the property track...
Federal Government and the negative gearing question
A recent article from The Urban Developer discusses the Australian property market's reaction to speculation about changes to negative gearing and capital gains tax policies, despite Prime Minister Anthony Albanese’s assurances that there are no plans to alter these policies. The speculation exists presumably because of Labor's poor track record on the subject.
Labor tried to remove negative gearing in 1985. The impact on rents was so bad that Labor had to reverse the policy within 24mths. Interestingly, in his 1987 budget speech, Paul Keating (the Federal Treasurer responsible) said this about his reversal of his own policy decision: "Tonight's decision restores the symmetry between investment in property and other assets such as shares or farms. It will enhance the attractiveness of investment in both commercial and residential rental property and have a beneficial effect on the supply of residential accommodation in particular".
A wonderful piece of spin. One wonders why he didn't recognise this symmetry before he removed negative gearing in 1985.
Population and policy - rich bounty for investors
This Australian Property Investor article describes how Australia’s population policy is benefiting property investors but creating challenges for renters.
With the population increasing and housing supply not keeping up, property prices and rents are rising. Investors are taking advantage of the high demand and low vacancy rates, while renters are finding it difficult to secure affordable housing.
This trend is happening nationwide, but it’s particularly pronounced in growth markets like Perth, where stronger affordability is driving more extreme effects.
Lot Sizes and Amenity Demand - The next 10 years
Over the next decade, first home buyers and downsizers will shape the Australian housing market. Both groups seek affordable, low-maintenance homes, often in smaller lots near amenities like parks and cafes.
Busy lifestyles are driving demand for these convenient living spaces. Michael Matusik reports what to expect in lot sizes and family-centric housing developments.
PropTrack Home Price Index results - October 2024
Off the property track...
This month, from Visual Capitalist:
Ranked: The World's Most Powerful Reserve Currencies I'm surprised to see Australian dollars on this one.