The Australian Federal Budget delivered on Tuesday has caused a huge amount of concern for renters who will face much higher rents in the future as a result of the government changes. Labour in New Zealand made similar changes back in 2018 which resulted in rents increasing on average $180 per week. What’s more concerning is the government in Australia campaigned on not doing this. Before the election, Australians were repeatedly told negative gearing on rental properties would not be touched. Now the conversation has shifted and investors are once again being treated like the bad guys. Changes to negative gearing could completely change the game for property investment and development in Australia, with many people simply deciding the risk is no longer worth it. What is negative gearing? Here is a real-world example. If Sue owns an investment property worth $500,000 and owes the bank $400,000, her interest costs might be roughly $24,000 pa.…