The property industry needs to be recognised for the massive contribution it makes to the Australian economy rather than being the subject of regular attack, says a leading property adviser.
Nidal Rasheed, Managing Director of Silvertail Property Group, said recent GDP growth results were in part attributable to the property industry. The results included a 1.2 per cent increase in dwelling investment in the quarter.
“Traditionally people will criticise the property investment industry and blame investors for driving housing prices up. But if I wasn’t for the property industry we probably wouldn’t have had the same growth we have had,” Mr Rasheed said.
“The property investment industry makes an important contribution to the Australian economy including thousands of jobs. The sector represents a large chunk of the real estate market and also contributes to construction, finance, retail, infrastructure and myriad other industries.
“The ABS has reported that over 1.06 million people are employed in construction as a result of some of the work we do – and there’s more than 217,000 people employed in rental and property management. A lot of this can be attributed to investors.
“Building and construction accounts for close to 8% of our GDP and about 9% of employment in Australia.”
Mr Rasheed said negative gearing had been put under the spotlight during last year’s Federal election period, with debate about abolishing negative gearing. He said this was misguided.
“Investors last year wrote $3.7 billion off their taxable income however, through capital gains taxes, they have paid over $51 billion,” he said. “They’ve also contributed to about $45 billion in property-related tax revenue collected by state and local governments.
“Aussies love property. Residential housing across the whole country is estimated to be worth $6.6 trillion – or three times the sharemarket. Construction accounts for about 230,000 new homes in Australia a year.”
Mr Rasheed said overall the property industry contributed to three main pillars of the economy:
- Providing jobs and economic growth.
- Providing shelter for a lot of Australians (1 out of 4 live in a rental). This lessens the pressure on governments to provide housing for people who can’t afford to buy their own home.
- Creating wealth for a lot of Australians. Investors who are self-funded reduce the burden on government pension and welfare payments, which is particularly important in light of Australia’s ageing population.
Nidal Rasheed is Managing Director of Silvertail Property Group, established in Adelaide in 2014 and working with clients around Australia. www.silvertail.com.au
In October 2016 Nidal won the Owner-Entrepreneur category of the Australian Institute of Management (AIM) Leadership Excellence Awards in SA; in 2015 he was South Australian winner in the Young Manager of the Year category of the AIM. Nidal has won numerous awards for outstanding achievements in the areas of sales and customer service for leading ASX listed property developers and other national companies he has worked with.