May has started off with the budget.
The budget will have a mixed impact on the Australian property market. Most hard hit will be developers and foreign investors.
Developers can only sell 50% of stock to foreign buyers.
Two deductions have been affected with this budget. Depreciation to things like washing machines and ceiling fans cannot be claimed by a second owner of the property. Therefore it doesn’t affect the properties first owner. Travel expenses cannot be deducted associated with a rental property.
A ‘ghost tax’ of approximately $5,000 per year will be placed on properties left empty or failed to be rented out for at least six months of the year.
A non-concessional contribution of $300,000 per person to superannuation can be made from the sale proceeds of a principal residence owned for the past ten or more years from 1 July 2018.
First Home Buyers
FHB’s will be able to use voluntary contributions to their superannuation to save for a house deposit. The amount you can contribute is capped at $15,000 a year and $30,000 all up.
A potential impact on mortgage rates may occur due to a ‘bank tax’ associated with wholesale funding in the budget.
There are less listings at this moment, than a year ago.
Owner occupied housing finance commitments remains above investment finance commitments.