In the most contentious Budget in recent memory, significant changes have been flagged that impact housing.
Investors are leaving the existing homes market due to changes in negative gearing and capital gains.
There is evidence that this is already happening with property prices falling.
Poised at 60% owner occupiers and 40% investors – this change is creating positive opportunity for some.
How can owner occupiers benefit?
1 It is good for First HomeBuyers – BUT – make sure the home you buy is one you want to live in for a long time.
Anyone buying using the Govt’s 5% no mortgage insurance scheme should assume it will be quite a while before there is enough equity built up to sell and shift.
2It is good for existing owners (WITH GOOD EQUITY in their home) who want to shift.
For people living their lives with growing families (upsizing) or for those at the other end (downsizing) there is opportunity to be found.
In a market like this however, it is wisest to sell first. This gives clarity on your position before committing to your next purchase.
The bigger picture context
The Australian housing market tends to be characterized by periods of growth and plateaus – with population at 28 million now and projected at 30 million by 2030, it is worth remembering that any housing price corrections are temporary. Long term growth remains stable.
It is a highly contentious budget – in significant dispute – but with an election not due until 2028, this is the policy environment currently shaping the housing market.
Even so, the direction is clear. The market is adjusting.
Those who respond early tend to benefit most.
If you want to understand how this affects your specific position — buying, selling, or restructuring — now is the time to run the numbers properly.
Call or email me anytime for help – it’s what I’m here for.