The provisions in Labor’s policy to “grandfather” negative gearing on current investments will not protect the interests of existing investors in real estate and will put at risk planned for retirement nest eggs according to the real estate industry.
Mr Neville Sanders, President of the Real Estate Institute of Australia says “With negative gearing only available for investment in newly-built residential property existing investors will find it more difficult to sell their properties as other investors will show little interest in existing property with inevitable falls in value to follow.“
“These falls in value will in time translate to a lower standard of living in retirement as many mum and dad investors have purchased property as a means to improve their retirement living as independently funded retirees”, added Mr Sanders.
