Should I buy now before negative gearing changes crush rental yields?

[tbkledixts]

Rent prices will pump when they remove negative gearing and reduce CGT discount. Is everyone buying now, or do you think rental yields will reach equilibrium with holding costs plus/minus margin of error?

The yield is currently very low beolw holding costs. I think a 20% pump is likely. But in many cases, 30% or more is needed to cashflow positively.

Thoughts?

 

[MangoChicken98]

Rent up 30 percent for me I'm not a charity lol

 

[EpicGecko47]

Rent prices aren't going to pump.

 

[Cyb3rWrathX]

Yeah, not a great time to be in a market that's about to get super volatile.

Rents are definitely gonna go up 100%. Anyone using negative gearing to offset that 37% income tax rate is just gonna bump rents above the maintenance cost of the asset which averages around 18% for the typical small time investor with 1 3 properties. (And that's the majority, by the way.)

 

[MindDrive202]

I don't see a 20% increase to rents happening

 

[JordosS1mplyLuck]

I do not think rents will go up.
The new tax incentives will be for new house construction.
Everyone would just on building new houses and add supply.

 

[misterbros07]

I went ahead and raised rents that were already positively geared, just to play it safe. I didn’t vote Labor, but honestly, they’re sure making me a lot of money.

 

[Arcanawarrior80]

We will see multigenerational households.

This applies to both rental and homeownership markets.

I am buying land, not housing. It does not yield, but it is a sensational store of value.

 

[DunmerWyre]

Rents will surge. Interest rates will rise. Insurance premiums will rise. Rates will rise. As if rents will not increase.

 

[mannycandyshader]

Hey there, I just can’t understand why different asset classes should have their own tax rules, you know? Property really ought to be treated just like the others, don’t you think? Fingers crossed the ASX gets a nice little boost when property isn’t so appealing anymore can’t wait to see real estate agents trading in their Mercs!

 

[VyzantineAlexPR]

Bro this is Australia. House prices and rents only ever go up and accelerate forever