Tight levels of supply and increasing rental yields are not enough of a drawcard to lure investors to WA
On the back of WA Premier Alan Carpenter’s September announcement that $240m would be pledged towards the public housing system, the Real Estate Institute of WA (REIWA) is calling for more incentive from investors to move into the market.
REIWA Councillor David Airey says that while the Premier’s announcement will “be welcomed by a small number of social housing beneficiaries”, he believes that nurturing the private sector would be a much more effective way to provide housing stock to low income earners.
"The State provides only twenty per cent of all rental accommodation in WA – the other eighty per cent is owned privately by people who buy rental properties as a long term investment," Airey says.
The best way to provide adequate rental housing stock and moderate rent increases, Airey says, is to address supply.
"The more encouragement investors have to enter the housing market and hold their properties, the more people will consider building and purchasing rental properties,” Airey says.
"The onerous taxes and charges on investors including land tax and stamp duty are causing many people to walk away from property investment, turning instead to superannuation funds or the stock market as alternative strategies.”
Airey believes the State Government should make investing in property more attractive by reducing stamp duty charges on investment properties.
"Stamp duty in WA remains the highest in the country, along with Victoria,” Airey says. “This is unnecessary and must be reviewed as soon as possible.”
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