By Graeme Salt
“It was the best of times, it was the worst of times”
Charles Dickens A Tale of Two Cities
The budget is already having a huge impact on the property market, with investors now focussing on new-builds thus giving owner occupiers less competition.
This week, many of my clients have shown the joys as well as frustrations of a rapidly cooling property market.
- David and Susan bought their home for $1.69m, below the $1.75m they expected to pay – a saving of $60k
- Jane deferred the auction of her home due to limited buyer interest. We are now looking at bridging finance as she moves into her retirement home.
The budget has levelled the playing field for (younger) owner-occupiers, with tax benefits that previously enabled investors to out-muscle them now withdrawn by the budget.
Investors can no longer buy established properties and claim negative gearing.
As one real estate agent recently told the Australian Financial Review of one property buyer “as soon as the budget came out, the scope was completely changed. Because of the negative gearing and capital gains tax changes, he said: “No more established.””
Investors moving their focus from established to new properties is showing itself in auction clearance rates below 50 per cent.
Looking to sell a property – this could be the worst of times.
But, looking to buy, this could be the best of times.
If you want to discuss buying property in the current market, please feel free to contact me. on 02 9922 5055.
