Negative Gearing; What it is all about?

Historically, properties located within a 10km radius of Sydney’s CBD and close to the Eastern beaches have always been in very high rental demand.

Going back to the mid-1950s it was that difficult to find rental accommodation, a £500 key money was required to secure a property - which in today’s term could quite conceivably be translated to $10,000 to $15,000 or even more. The waiting lists were long and areas like Kingsford, Maroubra and Coogee were very popular. 

As we know there was a massive building boom in the 60s and 70s which enabled population growth and settlement in Sydney. As a positive consequence, many more rental properties became available. Moving into the 1980s, Negative Gearing was introduced by the Australian Government as an incentive for investors to support real estate. The upside - there are many more properties available to renters and this keeps rental prices in a stable framework. 

That being said there is still a massive demand of people wanting to live close to the University of New South Wales, the Prince of Wales Hospital, en route to the airport and in convenient suburbs like Rosebery and Zetland where the infrastructure is carving a new culture within our city. 

NGFarah manages two and half thousand properties in this area and strives to provide an all-round good service to both landlords and tenants. Incidentally, NGF have been ranked as the Number 1 Property Management company in New South Wales for Landlord recommendations by the third party company ‘RateMyAgent’ (current ranking as of Wednesday 13th March 2019) and were awarded #6 Property Management Agency in Australia. 

We understand that if Negative Gearing comes off of the table, this will put a lot of pressure on rentals in our area. Though it will have positive outcomes for existing landlords as property rents will be likely to rise at a strong rate, which isn’t great news for tenants.

Damien Caruana of NGFarah said "the rental market is still strong today.

“We are leasing, on average, up to 20 properties per week and our team’s focus is on reducing our vacancy factor for our landlords.

“We are doing this by putting more emphasis on marketing and capitalising on NGFarah’s massive database reach and strong street exposure.”