First-home rentvesters in crossfire of negative gearing

Economists warned that removing negative gearing would make rentvesting, where buyers purchase in cheaper areas while renting where they want to live, a less viable entry point for younger Australians. National rental yields were 4.4 per cent for the June quarter, well short of the 6.36 per cent typical variable rate charged to owner occupiers. PIPA research found one in seven investors was spending $10,000 to $60,000 a year on holding costs.