Real estate body warns of rise in rent price
LOCAL real estate agents have also turned political lobbyists, warning of the dangers of changing negative gearing policies as the race to election day narrows.
The Chronicle understands letters from a number of real estate agents across Hervey Bay have been sent to tenants.
One letter from Raine & Horne warns a change in government will be "devastating".
Pamphlets from the Real Estate Institute of Australia and the group's Queensland branch have also been distributed, claiming property prices will fall "well beyond market conditions" if the changes go ahead.
"The fall in property prices will decrease the value of 18million Australians' retirement nest eggs, while rents will rise," the letter reads.
"Government savings will be less than estimated, unemployment will rise and our whole economy will be in jeopardy.
"It's important that all Australians understand what's really going on with this debate."
REIQ Fraser Coast zone chairman Damian Raxach confirmed the materials had been released under the group's Stand for Stability campaign over the past eight weeks.
"From an REIQ stance, the proposed reforms could lead to fewer listings and new builds and a reduced need for agents," Mr Raxach said.
"Rent could go up by up to $95 per week and the proposed reforms could devalue the homes of investors."
Labor has flagged changes to negative gearing should it form government, pledging to limit negative gearing to new housing from January 1, 2020.
All investments made prior to this new date will be exempt from new laws and regulations.
Modelling from the NSW Treasury has found this would modestly improve housing affordability, but the LNP claims it will end up driving down the value of people's homes.