My advice to buyers, sellers, and homeowners
is a review of negative gearing and push from various political parties to address it again, and all I can say to you is that, well, look, essentially what they're saying is they need to review negative gearing rules to allow people, the government, to stop the gravy train. I think that they used where they subsidise their losses, and that's what negative gearing is income in versus expenses, and if you're losing 20 grand, that you can write that off your tax at the end of the year, which would give you a benefit of roughly, say, 30 or 40%. So, team removing negative gearing will ultimately get people, as far as I'm concerned, living in the streets, and I saw a little bit of that in Amsterdam. Living in the streets why? Because think about it for a landlord to want to buy or to keep an investment property to put tenants in there, it's got to be attractive. If it's not attractive, they won't buy one or they will sell it. If they're going to sell it or not buy one, you have less rental properties on the market. When you have less rental properties on the market, you have more tenants fighting for the available remaining rental properties and then that forces rents to go up. That is a basic economic principle of demand and supply, and I think that that would be a major, major error by the government to touch negative gearing.
Speaker 1:A lot of people are going to say, yeah, you're a real estate guy, you probably own property. So what about you know the person that can't buy a home because investors own multiple properties? Well, I have to tell you, most of the investors I know, most of the investors I know, are not people that are driving Maserati's wearing Rolexes, right? Most of the people that I know that own investment properties are people that have got jobs paying under a hundred grand a year. They're your nurses, they're your school teachers, they're your tradey, they're people that are investing to move ahead for their family and for themselves and they're using real estate as an asset class. They're not some landlord that's pocketing you know, hundreds of thousands of dollars, loitering around the casinos, living it up swanky life. Not at all. And in fact, to me, the investors have been one of the cohort of people that have been very impacted by these rate rises, because most investors don't have their home paid off I'm talking about their family home paid off so they have been paying the increased interest rates both on their investment property and also on their owner, occupier. So they have had the double whammy. And I also want to let you know that it's important. It's important to gather and understand that a lot of people say, yeah, but rents have gone up. Rents have gone up, yes, they have gone up, but rents have not gone up to the level that loan repayments have gone up over the last 12 months. So I think it would be a very, very silly thing to do.
Speaker 1:What would I be doing right now if or let's talk about it if you're a seller? If you're a seller Sorry, if you're an owner of real estate and you've been thinking about selling, well, I think you'll probably have a little bit of relief, knowing that it's probably unlikely there's going to be another rate rise. So you have survived 18 months of hell. I would say hang in there.
Speaker 1:If you are someone that is thinking of selling, what would I do right now? If you're thinking of selling because you want to go and buy another home and it's not to do with an investment or a commercial decision, I would do it now. Make a decision based on your life, not based on the market. It's a revenue neutral market anyway. You sell low, you buy low. You buy high, you sell high, right. It all balances out. You don't make a decision based on the market. Make it based on your life. If you're a buyer right now, I think I'd buy, I think I'd buy, I think you can feel like the movement's happening and I think, look, if you don't buy this month or next month, it's not the end of the world. But I do think at some point later on in this year, when we start getting a sentiment of the marketplace being very, very positive due to the dropping of the interest rates, you will be fighting with people in competition. At the moment, you've probably got a little bit less. So, team, well, there you go.
Speaker 1:As I'm doing this video here from Amsterdam Airport, let me swing you around as well. Maybe show you there. That's it there. Actually, I'm going to have to go in a second too, because my flight's going to get called in. But, trevor Bowen, in Cheltenham they had 10 out of 10 today. That's incredible. John Dyer, stop all non-Australian citizens from buying any properties like Canada introduced for a minimum of two years. That's what John's advice. There is Good to see you all coming on, but, team, anyway, signing off, I'll see you soon.