With the Federal election looming, one of the most hotly debated topics remains the issue of potential changes to negative gearing. While the issue is Federal, any decision to make changes to the policy will affect us at a local level. REIWA conducted a survey of 352 Western Australian property investors to learn who they are and their opinion on the negative gearing debate.
- 72% negatively gear their investment property (i.e. the money they receive in rent is less than the cost to finance and maintain the property. This creates an allowable tax deduction under the current policy).
- 76% own 1-2 investment properties (suggesting most are ‘mum and dad’ type investors).
- 30% earn less than $80,000 per annum (gross annual salary).
- 51% earn a gross annual salary of less than $100,000.
- The majority of WA property investors (almost a quarter) work in the Business and Human Resources sector.
- The other industry sectors in the top 5 for WA investors are:
- Mining and Engineering (17%)
- Construction (13%)
- Health, Education and Social Welfare (11%)
- Public Service (11%)
Considering more than half of WA property investors earn less than $100,000 further highlights the fact that negative gearing provides an important benefit to low and middle income earners in WA. It also puts to bed the myth that property investment and negative gearing only assists wealthy Australians.
REIWA president Hayden Groves said, “These results show us that property investment is for everyone and provides an opportunity for all West Aussies to secure their future.”
To learn the facts on negative gearing and how changing the current policy will affect you as a property investor, click on the link to download the fact sheet.