This year’s budget has been a rather disappointing one for a lot of homebuyers, with no new funds being invested to help battle the nation’s housing affordability issues.
However, it’s not all bad news. While the budget hasn’t delivered any measures to help entice new homebuyers into the market, there were fears that the budget would be harsh on investors and eliminate negative gearing and Capital Gains Tax (CGT), which hasn’t been the case.
Nothing new for first home buyers, but…
Unfortunately there was nothing too exciting in this year’s budget for first home buyers, however it’s important to remember that there are still schemes available to help new buyers enter the property market, including grants and stamp duty concessions. There is also the First Home Super Scheme, which was introduced in last year’s federal budget.
A victory for investors
Property investors have been copping a hard time of late so for many no news will be good news. There were rumours that negative gearing and CGT rules and exemptions would change, but luckily this hasn’t been the case.
However land bankers have been targeted. Changes will be brought in from July 2019 that will mean that property owners will no longer be able to claim expenses such as council rates and maintenance costs for vacant land in their tax returns.
Over 65s can stay in their properties longer
Every homeowner over the age of 65 is being offered a reverse mortgage, worth up to $11,799 per year for the rest of their lives.
This is an interesting measure given that it was just a year ago that the federal budget was trying to encourage older Australians to sell up and downsize to free up the market for first home buyers.
The new equity loan will however be a good thing for many and help the elderly stay in their family homes without having to sell them to access money.
Infrastructure spending could boost property values
Infrastructure spending was a major winner in the latest budget. In his budget speech the Treasurer said: “Our $75 billion, 10-year rolling infrastructure plan will continue – strengthening our economy, busting congestion in our cities, making rural roads safer and getting our products to market.”
This spending will help boost economies around the county and positively impact property values located close to infrastructure projects.
For full details about the latest budget visit https://www.budget.gov.au/.