RENTS SET TO SOAR BY UP TO 30% IF CAPITAL GAINS TAX REPEALED – INVESTMENT EXPERT NATHAN BIRCH

# BIRCH PREDICTS THAT DUE TO LESS INVESTORS IN THE MARKET IF CGT WAS TO BE SCRAPPED, RENTS FOR EXISTING STOCK WOULD SOAR 

# LAST TIME CAPITAL GAINS TAX WAS REPEALED FROM 1985-87, RENTS SHOT UP, WITH PERTH SEEING A RISE OF OVER 30%

# WITH NEGATIVE GEARING CAPS ALSO ON THE GOVERNMENT'S AGENDA, THE OUTCOME FOR RENTERS COULD BE CATASTROPHIC 

# BIRCH IS THE FOUNDER OF B.INVESTED WHICH SPECIALISES IN UNCOVERING BARGAINS FOR ITS CLIENTS THAT ARE CASH POSITIVE & UNDERVALUED

Changes to the Capital Gains Tax will see rents soaring by up to 30%* in the same way they did from 1985 to 1987 when CGT was last repealed, B.Invested founder and CEO Nathan Birch has warned. With less investors and rentals on the market, something that will be compounded not just by a current average of 970 migrants entering Australia daily, but also by the soaring cost of building materials and severe shortage of skilled labour nationwide that prevent many who can afford to consider exiting the rental market, from building a home. 

"Building a property affordably not only means you need to live far from most capital cities, but you will also need to wait for the build to be completed and continue renting in the meantime, so we will effectively see many years of rent rises," Birch explained. 

Australia's building and construction industry modelling has recently indicated a shortfall of 300,000 workers by mid-2027. The shortage is hindering housing supply, with current industry needs estimated at 130,000 extra workers to meet national targets. To try and alleviate this critical shortfall, it has started an initiative to recruit mature-aged apprentices into the industry. 

"Even with more skilled apprentices, rising fuel prices and import costs have increased building materials by up to 30%, with the Master Builders Association reporting that in some cases,  freight costs have increased tenfold," Birch says. 

"It's simply not the time to repeal negative gearing or capital gains tax discounts, the housing of everyday Australians depends on it."

Birch has a personal property portfolio of over 350 properties and is well known for securing below value properties for his clients that are cash positive and under the $300,000 mark.

"This will become much harder to do going forward, so my advice is to secure this stock as soon as possible into your portfolio." 

*According to the Australian Bureau of Statistics Consumer Price Index Table Sydney rents rose by 31.9%, Melbourne rose by 22.9%. Perth rose the most by 33.5%. In all, five of the eight capital cities rose by more than the CPI increases over the period Negative Gearing was repealed in 1985-1987.

TO INTERVIEW NATHAN BIRCH email Marta@marksonsparks.com or call Marta Wiacek on 0409 291 785 or email Max@marksonsparks.com or call Max Markson 0412 501 601