Home ownership in Australia has been heading one way for 30 years – down.
But Labor plans to disrupt that trend, by limiting negative gearing and halving the discount on property capital gains tax.
But a new report warns that Labor’s approach could further damage some markets which are already stumbling.
New South Wales could see prices for units and houses drop by 9%, in Victoria there could also be a 9% drop for house prices and a 6% drop for units, in Queensland 6% for houses and 7% for units, in South Australia that price drop could be 6% for both houses and units, while in Tasmania prices could drop 2% for houses and 3% for units and over in Western Australia, residents could enjoy a huge price drop of up to 10% for units.
While some potential prices falls sound steep, markets have spiked sharply in the last 5 years.
Experts say any reform must encourage building of more owner-occupied housing.