The real estate industry has urged the Government to retain negative gearing in May, when Treasurer Joe Hockey will announce his second budget. In its pre-budget submission, the Real Estate Institute of Australia has defended the measure, saying it helps renters and investors alike.
“The evidence is clear that both negative gearing and the capital gains tax discount (CGT) feed the supply-side pipeline at a time of a chronic under-supply of houses in Australia,” said REIA CEO Amanda Lynch. “Any alteration to the current arrangements would likely result in a need for a greater investment by the Government in social housing and could potentially increase rents – as recognised by the Henry Tax Review in 2010, which stated that the current provisions placed downward pressure on rents.”
The REIA’s submission has eight recommendations. Along with the retention of negative gearing, these include abolishing conveyance stamp duties and replacing them with an efficient source of revenue
for states and territories; not increasing capital gains tax on property investments; establishing a scheme to encourage young Australians to access their superannuation as a first home deposit; a uniformed approach to the provision of assistance to first home buyers for both new and established homes; continued funding for the Industry Skills Fund; better utilization of private investment to improve the supply of housing for social housing tenants transitioning to private rental; and a mechanism to ensure the availability of reliable data on housing demand and supply to assist in formulating effective policies.
Supportive information source: The Real Estate Conversation in association with REIA – published February 2015
Posted by: Mark
For Property Management Services in Melbourne – Master Advocates have the experience and the answers you need:
Owning an investment property is an important step towards a brighter financial future. But how do you ensure your investment is being looked after?
At Master Advocates, we are your experts in property management and we are happy to answer any of your questions.
How long will it take to lease my property?
It depends on your property. We begin marketing your property the day you list it with us and our aim is to find the best possible tenant to match your property.
How do you set the rental price for my property?
It is not as simple as just trying to get you the maximum rent.
Because we are experts in the local rental market, we come up with a figure that is fair to you – and one that sits well with the current market expectations. We do this by analysing demand, location, market saturation and a range of other factors. At Master Advocates, we know your investment property is an important asset and we promote its unique attributes and features in order to find the best possible tenant at a great price for you.
What is the length of the average tenancy?
For residential properties, fixed term is typically 12 months but this is open to negotiation, depending on your needs and what the desired tenant/applicant is willing to accept.
Do you guarantee the tenant?
While we can never guarantee the behaviour of another individual, we can assure you that we use rigorous reference checks to find the best possible tenant to suit your property.
As experts in property management, Master Advocates do everything in our power to educate both landlord and tenants of their rights and responsibilities. We also recommend that you take out landlord protection insurance to give you an added level of protection as a landlord.
What tenancy paperwork is needed?
All tenancies are subject to the Residential Tenancies Act.
The tenancy documentation includes:
- A Residential Tenancies Application Documentation
- A statutory Residential Tenancies Lease Agreement
- A statutory Premises Written Entry Condition Report (Consumer Affairs Victoria)
- A Rental Bond Lodgement Documentation (Residential Tenancies Bond Authority)
- Regular Written Routine Inspection Reports
- Premises Written Exiting Condition Report (Consumer Affairs Victoria)
- A Rental Bond Claim Documentation (Residential Tenancies Bond Authority)
Who is responsible for smoke alarms, light globes and tap washers?
In Victoria, it is the landlord’s legal responsibility to provide working smoke alarms and light globes, and to fix any leaking taps prior to the commencement of the tenancy.
During the tenancy, the tenant is responsible for replacing any smoke alarm batteries and light globes.
Although Master Advocates are not legally qualified to check the working order or suitability of specific types of smoke alarms, we can recommend qualified professionals to manage that responsibility on an annual basis or as recommended.
Landlord Insurance, do I need it?
You do not need to have landlord insurance, though it may be the case of “it is better to have and not need, than to need and not have”. Also when selecting your insurance provider, be sure to check all of the policy terms and conditions, as there has been experience with some insurance providers that have voided a landlord’s legitimate claim based on the tenancy being on a periodic month by month residential tenancies lease agreement and not on a fixed term lease agreement. The term or type of lease arrangement being fixed or periodic should be irrelevant and not effect a legitimate claim with any insurance provider.
If I want to sell my investment property, can Master Advocates help?
Yes, our vendor’s advocacy service team can work with you to find the best possible real estate sales agency to be enlisted, market the property sale campaign and negotiate with the ultimate buyer for your property. We assist by negotiating the sales commission, marketing and advertising fees and structure once the right sales agency has been selected and monitoring the sales campaign being Private Sale or Auction, liaising with the sales agency from the beginning through to a successful settlement to ensure your best interests are always considered.