Late last month we reported on news of the Gillard Government considering the scaling back of Negative Gearing in Australia. (See Negative Gearing Rort added to Endangered Species List)
The Australian has today reported on a couple trying to sell an investment property after the uncertainly brought about from these discussions. Jo Studdert of the Australian writes :
Amy and Wes Rogers are 32-year-old parents of two young boys and the owners of four investment properties, one of which they are selling because they are frightened the government may abandon negative gearing on investment properties.
“What I’ve read and heard about new taxes on property investments and the abolition of negative gearing makes you question what you’re doing,” she [Amy] says. “We’re not sure what to do now. We’re worried about this negative gearing talk and if there are changes we’ll be in real trouble.”
We are surprised someone would be so open and frank that they are in real trouble. The article is accompanied by a photo of the family and the caption “Will, Wes, Lachie and Amy Rogers, whose investments have been compromised because of talk that negative gearing may end. ”
After endless news articles of real estate agents masquerading, undisclosed as first home buyers who have just brought, and all of which are now looking for investment properties, we are naturally cautious.
But negative gearing isn’t the only problem the Roger’s family has. They can’t sell their Oakdale property in Sydney’s southern outskirts either.
But the market is working against the Rogers. The house has been on the market for more than 180 days and, although there have been many viewers, there have been no real offers and the agent has already persuaded them to drop the price by $20,000 to $290,000.
“And now they want us to drop it by another $35,000,” she says.
Now, we first found out about the Negative Gearing discussions towards the end of April, but the Rogers have had their property on the market for six months now.
It does sounds more like a propaganda campaign in support of Negative Gearing, although it could easily have the opposite effect as we all know property investors have a lot in common with lemmings. What do you think?