Queensland investors face uncertainty as potential changes to the Residential Tenancies and Rooming Accommodation Act, as well as negative gearing, are still being deliberated.
The Queensland State Government is set to finalise its ongoing review of the Residential Tenancies and Rooming Accommodation Act in the first half of this year, with a range of potential measures that are concerning to landlords.
Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella says the potential changes are unfair to landlords.
“The public rhetoric around this review seems to focus on eroding landlord rights and creating a severe imbalance with disproportionate levels of power weighted in favour of tenants,” Ms Mercorella said.
“The legislation must serve both parties equally, rather than give all the rights to one party and disadvantage the other. Distorted laws serve no one and will only create dysfunction in the rental sector."
One potential consequence of the proposed changes could be a shortage of rental accommodation. Currently, more than 34 per cent of Queenslanders rent and the number is only rising. Ms Mercorella told WILLIAMS MEDIA that losing investors is a worry.
“This concerns us because more than 34 per cent of Queenslanders rent and that number is rising, and if we lose investors we may face a rental accommodation shortage.”
Equally concerning to investors are the flagged changes to the negative gearing provisions from federal Labor.
“The negative gearing policy was first announced in 2015 when Sydney and Melbourne house prices were growing at double-digit rates. It was seen as a way to limit investor activity in the market and make way for owner-occupiers, creating less competition for stock and, as a result, soften price growth.
“However, prices in Sydney and Melbourne are now falling. This raises the question – does the nation really need a policy that is designed to push house prices down? What purpose do these changes serve now?” Ms Mercorella said.
She said a lack of trust in lending institutions following the banking royal commission is also giving investors cause for pause.
“At a time when we should be feeling optimistic and preparing for real growth in our market, with Brisbane’s growing median house price bucking the falling trend evidenced in Sydney and Melbourne and APRA easing lending conditions, we are instead calming nervous buyers and sellers who are, quite reasonably, concerned about the many unpredictable economic factors swirling around and affecting the property market."
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