What property investors need to know about Budget 2022.
No nasties for investors.
It goes without saying, negative gearing and capital gains tax concessions were unaffected by this year’s budget.
It’s safe to say, any changes to tax and property ownership would cause a political earthquake which no politician wants.
Plenty of sugar, please.
Of course, Frydenberg’s budget was mainly about short term “relief” for suburban families.
Front of the queue was a massive 22 cents a litre cut in petrol excise. We’ll wait and see how much of this cut endures after the first few weeks.
There is also a one-off $420, which added to the Low and Middle Income Tax Offset (LMITO) will see around 10 million people claim $1,500 in July.
That will be good for consumer demand but may tip the scales towards inflation – an issue the RBA is firmly focused on.
Home Guarantee Scheme expands.
The government has expanded the Home Guarantee Scheme for first-home buyers to 50,000 places a year.
The First Home Guarantee, which helps first-time buyers with a deposit as low as five percent, now has 35,000 places.
The Family Home Guarantee, which helps single parents buy or re-enter the market with a deposit as low as two percent, increases to 5,000 places per year.
And the government has also nicked a policy from the Opposition with a new Regional Home Guarantee, helping 10,000 first-time buyers in a regional locations.
It is good to see more homeowners, but I must say I worry about so many people entering the market with next to no equity. If times get tough it is exactly these sorts of owner-households which get into trouble.
The last guarantee should be noted by investors; it will bolster demand for regional property which is great news for markets like Ballarat and Bendigo.
Overall, this budget is a probably a smallish net positive for property investors, but it does have a very short term outlook.
Author; Miriam Sandkuhler
Property Prosperity
Have you always wanted to buy property but been confused about where and how to start and who to trust along the way? Do you want to build a property portfolio strategically, while also ensuring it is sustainable for you to hold onto over the medium to long term? Did you know that the price you pay is almost more important than you price you eventually sell for ?
This is a book for beginner, intermediate and advanced property investors that gives open, honest, transparent and straightforward but extremely important step by step recommendations to action, when venturing into the property ‘jungle'.
Now you can create financial prosperity with property in a way that doesn't break your bank, while learning what to avoid, what questions to ask and how to maximise your return - by following a simple process that shows you how to select the right property, negotiate well and assess continually.
Knowledge is power and this book gives you both!
Click here to learn more or buy a copy of Amazon Best Selling book !
Rate Your Property Expertise
