Real property sellers warn tenants towards Labor’s terrible gearing coverage

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Stephen Rees-Carter became “quite annoyed” to acquire an email from his real estate agent warning him against adjustments to negative gearing legal guidelines.

McGrath property management’s e-mail to him and his spouse, who lease in the electorate of Ryan in Queensland, warned that Labor’s proposed regulation to get rid of poor gearing from sure assets sorts “ought to see the killing of the goose that has laid hundreds of thousands of golden eggs for tens of millions of everyday Australians”.

Rees-Carter was unmoved and defined the emailed pamphlet as election “propaganda unsolicited mail”.

 

“We’re a younger family on unmarried profits and housing affordability is a massive factor for us,” he stated. “We live in an area wherein basically each time a family domestic goes up for sale, it’s sold for an inflated rate with the aid of buyers and turned into a condominium. This is one of the motives we’re nonetheless renting – because negative gearing investors are taking all the own family homes, so households have no desire but to lease.”

He replied to the email, telling McGrath he turned into “quite disillusioned in this thinly veiled political attack in opposition to the Labor birthday celebration”.

“Next time you’re going to ship out Liberal propaganda unsolicited mail, at least have the spine to call it what it is,” he wrote back.

A reaction returned from Rob Fearnley, head of McGrath belongings control, denied the email become communicating a political message.

“Our rationale becomes handiest to percentage facts with you on how any adjustments may additionally have an effect on you,” he stated.

Similar letters are being dispatched by means of severa actual property businesses such as Barry Plant, McGrath, LJ Hooker and Raine & Horne to their clients thru electronic mail and publish. They comprise material from the Real Estate Institute of Australia [REIA] warning that Labor’s plans to wind back bad gearing and reduce the capital gains tax bargain could reduce assets values.

A spokesman for the Australian Electoral Commission stated the commission had acquired numerous proceedings approximately the emails, letters and social media posts. While the AEC had authorized remarks about negative gearing for the REIA’s 2019 Election Campaign website, the REIA became now not accepted to proportion ads and posts on social media on troubles being debated in the election campaign.

“Accordingly, in line with regular practice, the AEC will inside the first instance touch the REIA to endorse that the AEC has acquired proceedings approximately terrible gearing advertising on social media that looks now not to be permitted,” the spokesman stated.

In a letter targeted toward landlords, the REIA says: “Economists say that if the planned changes to terrible gearing cross in advance, belongings charges will fall … unemployment will upward thrust and our complete economic system could be in jeopardy.”

In a letter targeting tenants, the REIA warns: “Rents will upward thrust.” While the cloth does no longer particularly point out Labor, it warns a change in government could be unfavorable, and it’s miles Labor that has proposed the coverage changes.

The REIA president, Adrian Kelly, stated the institute had now not received any negative feedback approximately the marketing. This is despite people taking to the REIA’s Facebook web page to specific their anger. One recipient, Angus Gibbins, wrote: “This is distinctly unethical REIA. It’s because of rubbish organisations like you that actual property sellers have the popularity that they’re the scum of the earth.”

But Kelly stated he had handiest acquired “an awful lot helping correspondence”.

“We have even been requested [by people] how they should vote. A question we will no longer reply to as our campaign is troubles based, now not birthday party primarily based. There has been no pushback from the real estate enterprise and individual agent participation is optionally available.”

Targeting tenants and landlords in this way represents “the low point” within the election campaign, leading economist and opposition policy professional Danielle Wood stated.