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.
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