Property investors who were hoping for this week’s Federal Budget to provide a boost to Australia’s slow moving property market will be left disappointed, but it’s not all bad news…
This week’s keenly awaited federal budget has done little of consequence to boost the Australian property market, claims the Real Estate Association of Australia (REIA).
“There is little in this Budget that hadn’t already been discussed in the media. It contains no significant surprises and will most likely not affect market conditions to any great degree,” said an official REIA statement.
However, the lack of any meaningful policy change on the property front will come as a welcome relief to investors who were concerned that they may be targeted by the treasurer in his efforts to bring the country’s bank balance back into surplus.
Key among the concerns of property investors was the suggestion that negative gearing benefits for property investors could be scrapped, and the REIA has given the Federal Government the thumbs up for deciding to keep negative gearing in place.
Other measures to get a big tick from the REIA include there being no increase in capital gains tax (CGT) on property investments, and no increase in CGT on family homes.
However, the real estate body was less impressed with the government’s decision not to remove stamp duty on property transactions; its failure to increase the First Home Owners Grant; and its decision not to allow first home buyers access to their superannuation to purchase a property – all of which had been lobbied for by the REIA in the lead up to budget day.
Has the budget affected your property investment plans? Place your comments below, or join the debate in our property investment forum.
Property market recovery may take some time
House prices “still falling”
Rate cut delivers boost to building
Do you have more than $200k in your super fund? You could use your super to buy property - Find out how
Top Suburbs :
Get help financing your investment
Do you need help finding the right loan for your investment?
When investing in property, it is important to make sure that you not only have the lowest available rate that you can get, but also have the correct loan features for your needs.
Just fill in a few details below and we'll then arrange for a local expert Aussie Mortgage Broker to contact you and work out what features or types of loans are right for your needs. We'll even help with the paperwork. Plus, our mortgage broking service is at no cost to you.
We value your privacy and treat all your information seriously - you can check out