ALP \u2018promise\u2019 in \u2018tatters\u2019 amid migration bombshell<\/a><\/p>\n![\"\"\/](\"data:image\/svg+xml,%3Csvg)
<\/p>\n
Investor sales have risen in the Sydney CBD.<\/p>\n
He noted that some of the investors selling in boom markets like Perth and Brisbane were likely cashing out after making a considerable capital gain, but it was a different story in parts of Sydney.<\/p>\n
Many of the Sydney areas with the highest volume of rental home sales were those with low rental returns, meaning landlords had to spend more of their income to support their investments.<\/p>\n
Investors in Parramatta offloaded 572 rental homes over the three months to May and a similar amount of rental homes were sold in the CBD and inner south and the north shore.<\/p>\n
The FoundIt report measured 122,360 national residential sale listings advertised between February and May and matched them with five years of rental advertising records from licensed real estate agencies.<\/p>\n
A property was considered an \u201cex-rental\u201d if its address appeared on records as an agency-managed rental before it was listed for sale.<\/p>\n
<\/p>\n
FoundIt head of research Kent Larnder said investors were fearful of the proposed changes.<\/p>\n
Two Red Shoes mortgage broker Brett Sutton said the tax reforms would hit renters hardest. <\/p>\n
He pointed to a national poll by Money.com.au in April that showed 61 per cent of investors would pull back from new purchases or sell under the new tax changes.<\/p>\n
Mr Sutton said he doubted renters would be buying these homes.<\/p>\n
\u201cThe uncomfortable truth is that a majority of renters are not in a position to buy,\u201d he said.<\/p>\n
\u201cLending serviceability requirements, stamp duty, and the ongoing costs of homeownership mean that for a large portion of the rental market, the choice isn\u2019t \u2018rent versus buy\u2019 \u2013 it\u2019s \u2018rent or have nowhere to live\u2019. <\/p>\n
\u201cIf investor activity contracts and rental stock shrinks, those people wear the consequences.\u201d<\/p>\n
Electrician turned Sydney buyer\u2019s agent Michael Kowalczyk, with wife Nicole, has 18 properties and said he was yet to offload any of his properties but could understand why some investors were selling. <\/p>\n
The founder of Tailored Property Group said those who had been considering selling their investments at some point in the next few years may be deciding to get ahead of the changes.<\/p>\n
<\/p>\n
Michael and Nicole Kowalczyk have a sizable portfolio and said they would wait to see how the changes took shape before deciding how to react. Picture: Richard Dobson<\/p>\n
\u201cThey don\u2019t want to be in a position where they are at the mercy of whatever the changes are. They\u2019re getting out while they can still get the capital gains (discount),\u201d Mr Kowalczk said.<\/p>\n
He noted that if the current tax regime was grandfathered in for existing investors it was likely few of these investors would sell. \u201cRestricting investing won\u2019t solve the underlying issue in the housing market, which is that we need more supply.\u201d<\/p>\n
SQM Research director Louis Christopher said tenants were already grappling with a low supply of vacancies. <\/p>\n
\u201cWithout a significant increase in new housing supply and\/or a stabilisation of population growth rates, it is likely that rental pressures will remain elevated throughout 2026,\u201d he said.<\/p>\n
Mr Christopher told media earlier this month that gutting negative gearing and capital gains tax discounts risked increasing Sydney and Melbourne rents by 20 per cent.<\/p>\n
<\/p>\n
Rethink Investing CEO Scott O\u2019Neill said more investors may consider other assets outside of residential real estate. Picture Thomas Lisson<\/p>\n
Rethink Investing CEO Scott O\u2019Neill, an accomplished investor with a sizeable property portfolio, said he expected investors to respond to the changes by purchasing more alternative investments like commercial real estate.<\/p>\n
Sydney-based investor Nathan Birch, who owns circa 350 properties, said he expected most investors to respond with rent increases if negative was removed.<\/p>\n
MORE: Surprise way 35yo Aussie tradie makes $460k\/yr<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Investors have been selling up ahead of expected reforms set to be announced by the Albanese government in…\n","protected":false},"author":3,"featured_media":785469,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4740,50],"class_list":{"0":"post-785468","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-australia","9":"tag-news"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116547618623961950","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/785468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=785468"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/785468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/785469"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=785468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=785468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=785468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}