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


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 email 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 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 was “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 communicating a political message.

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

Similar letters are being dispatched through severa actual property businesses such as Barry Plant, McGrath, LJ Hooker, and Raine & Horne to their clients through 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 asset values.

The Australian Electoral Commission stated the commission had acquired numerous proceedings regarding 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 was not accepted to proportion ads and social media posts 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 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 are implemented 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 letter does no longer particularly mention Labor, it warns that a change in government could be unfavorable, and it’s Labor that has proposed the coverage changes.

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

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

“We have even been requested [by people] how they should vote. We will no longer reply to a question 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.”

According to leading economist and opposition policy professional Danielle Wood, targeting tenants and landlords represents “the low point” within the election campaign.