Family homes and nest eggs
The biggest financial investment most Australians make is the purchase of a family home.
While national home ownerships are off their peak, more than two-thirds of all adult Australians own their own home or are paying off their own home.
As well, over 2 million Australians own an investment property.
New ATO data has revealed that far from being the ‘investment tool’ of the rich – owning an investment property is a strategy used by middle income earners to build a nest egg for the future.
Over 800,000 Australians who negatively gear have taxable incomes below $80,000 a year – and over 103,000 Australians aged under 30 negatively gear.
Despite the media commentary about ‘abuses and rorts’, the average deduction of those who negatively gear is $8,700 – demonstrating that most investors act prudently in their pursuit of building a nest egg.
We should not forget that every one of these properties is contributing to the backbone of Australia’s rental market – which is stable, robust and providing accommodation to millions of Australians.
With the Budget only weeks away, we are conscious that any changes to the taxation arrangements for people holding investment property has the potential to negatively impact millions of Australians who live in rented accommodation.
I am pleased to let you know that the Property Council's Board has chosen two industry leaders to be inducted into The Australian Property Hall of Fame.
Lang Walker AO and the late Stuart Hornery AO were chosen by the board for their sustained and visionary leadership, for their contributions to the industry and the nation, and for legacies that stand the test of time.
Stuart Hornery joined Lendlease as a graduate site engineer in 1964, launching a career that would catapult him into the role of chief executive in 1978 at the age of 39. With Mr Hornery at the helm, Lendlease became known as the “company without limits”.
Lang Walker has created three successful property development empires, each one bigger and more successful than the last. He has delivered 1,000-plus projects, from national landmarks to homes for thousands of families.
A more substantive tribute to both Inductees will occur in a future issue of Property Australia.