Property was certainly a hot topic in the lead up to the release of the Federal Budget last week from both Property owners and investors alike. Foreign investment was definitely under the spotlight, but two other groups that saw some interesting changes were First Home Buyers and Baby Boomers who own their own home. Lets take a look to see if those looking to buy their first property, as well as those potentially selling their last one, have actually gained any advantage.
There were a range of changes for property in this latest budget, including the reduction of foreigners being able to purchase 50% or less of a local development, the “empty home tax” also placed on foreign investors, and minor negative gearing changes specifically effecting travel costs.
But two of the more interesting changes involve those trying to enter the property market for the first time, and soon to be retirees thinking of putting their family home up for sale.
With the perceived difficulty that first home buyers face in order to enter the property market the Federal Budget included a “First Home Super Saver Scheme”, which basically allows first-time buyers to place $15,000 a year, with a maximum of $30,000, into their superannuation.
Participants in the scheme will then be able to withdraw those funds from July 1 2018, along with any associated earnings, to use for a home deposit.
While this tax relief will potentially serve some benefit, will it really bridge the gap that the younger generation face, particularly if the price points in Sydney and Melbourne continue to rise?
Affordability will always be a front page issue when it comes to property, whether that be for your own home, an investment, or how either can drastically transform your retirement plans. That is why at my upcoming free webinar I’ll be specifically discussing how affordability can be either make or break, and how for the past 25 years I’ve been using it to grow a substantial cashflow positive portfolio. To learn how you can do the same click below to register now.
The other group affected by the Federal Budget, at the complete opposite end of their property journeys, are the baby boomers who are receiving an added incentive to downsize.
Australians 65 years of age and over, who have owned their own home for more than 10 years, will have the ability to put up to $300,000 of the sale proceeds into their superannuation funds. This change is designed free up more properties and to encourage empty nesters to downsize from July 1 2018 onward.
This, combined with peaking Sydney and Melbourne property prices, may provide a compelling situation for those entering retirement to place their property on the market.
To place yourself, and your family, in a similar enviable position it’s important to plan for the future. At my next free 30 minute insight webinar we’ll fast track your knowledge on how you can take advantage of current market conditions, so you can learn to ‘TIME’ the market to get the most from your property investment and kick start your capital growth. Click Here to register now.