A new report says Labor’s planned rollback of tax breaks for property investors will lead to lower property prices and higher rents.
The report from SQM Research, investment advisers specialising in property investment, says property prices will fall nationally by between 5 per cent and 12 per cent by 2022 if Labor scraps negative gearing for existing properties and halves the Capital Gains Tax discount from 50 per cent to 25 per cent.
However, if the Reserve Bank cuts the interest rate by half a per cent, SQM believe the falls would be between 4 and 8 per cent.
Report: Labor’s Negative Gearing Policy
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Source: ABC News