Former NSW Liberal Party President Maria Kovacic’s recent call for the Coalition to consider a cap on negative gearing for investment properties “denies Aussies future financial security”.

First National Real Estate’s Chief Executive Ray Ellis believes capping negative gearing will deny Australians including nurses, firemen, defense personnel, and teachers an incentive that makes buying a rental property more affordable, offers future financial security, and provides the critically important supply Australia needs to solve the rental crisis.

With Australians still wanting to invest in rental property to create financial security in retirement and this form of private investment in rental housing is needed now more than ever.

Ray Ellis believes “Senator Kovacic’s suggestion that a cap on the number of properties that can be negatively geared would provide a solution to Australia’s housing crisis is ill-considered, because 72% of all property investors own just one rental property.  Even if you limited the number of properties that can be negatively geared to two, 91% of investors would not be affected,”

Ellis is calling on our leaders to focus on initiatives that increase the supply of rental properties to solve the affordability and availability crisis – rather than look at negative gearing gaps.

“The reality is the majority of Australians investing in the rental properties we so urgently need are essentially mums and dads earning – on average – around $80,000 a year,” said Ellis.