The Federal Government unveiled its 2017-18 national Budget this month. While there were no changes to negative gearing, several policies even the playing field for first home buyers and owner occupiers.
While we don't expect to see any major price drops, the following policies will impact the housing sector.
- Property investors are able to negative gear property, obtain capital gains tax concessions and use their super. The lack of any significant changes offers financial security for local investors.
- First Home Super Scheme helps first home buyers save for a deposit. From 1 July, first home buyers will be able to salary sacrifice a portion of their income into their superannuation in order to save a property deposit. In addition, investors looking to purchase ‘affordable housing’ will be rewarded with various tax incentives.
- Downsizing Owner Occupiers from 1 July, those aged 65 and over who are looking to downsize, will be able to make a non-concessional contribution of up to $300,000 from the sale of their principal place of residence into their superannuation fund.
- Increasing the level of supply by addressing planning and zoning, the release of defence land and the establishment of a National Housing Infrastructure Facility.
For more information on the Budget highlights including proposed changes to Australia's major banks, Medicare Levy and foreign investors and workers, please click HERE.
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