Fair go for investors and first home-buyersNegative gearing survived this years’ Federal Budget but there are still calls for a review in order to correct property prices and level the playing field between investors and first-home buyers.

The inflation of property prices caused by negative gearing is making it harder for investors to build their portfolio and for first-home buyers to purchase their first property.

Members Alliance CEO David Domingo says something needs to be done about the tax breaks that are distorting the property market and making home ownership for the younger generation a thing of the past.

“Negative gearing is ingrained in the Australian property market – it won’t be an easy fix,” says Mr. Domingo.

“I’m not talking about a complete overhaul, I’m talking about a very minor correction in the property market, and incentives targeted to first-home buyers like stamp duty concessions.

“It’s becoming one of those situations where you can’t live with it and you can’t live without it, something needs to be done.”

Rather than reforms to negative gearing, wealth creation companies like Members Alliance believe small changes in the right places will see these inequalities in the housing sector corrected over time.

Mr. Domingo says steps to address the policy’s effect on investors and young home buyers would see confidence restored in the Australian Dream of owning your own home.

“At the moment, investors are facing fierce competition in capital cities and first-home buyers are getting frustrated that house prices are well above the average wage,” says Mr. Domingo.

“Without some sort of change to policy, investors will keep paying well over market price and the younger generation will be subject to a lifetime in the rental market.

“It’s a hard line to walk, on one hand you have experienced property investors who use the method to create wealth, and on the other hand you have these young hopefuls just wanting a place to call home.” The Financial Advisors at Members Alliance can develop a customised property investment plan to help you own your own home or build your portfolio.

Call them today on 1300 365 731 to find out how they can help.

www.membersalliance.com.au