This year’s budget offered less for homeowners than last year. The main areas of interest in terms of real estate follow.
Owners of vacant land will no longer be able to claim expenses for items such as maintenance or council rates. The Government is trying to discourage ‘land banking’ which is when land is purchased with no intention of developing. Purchasers are simply hoping for a windfall when land values increase. This process basically prevents land being used for housing.
Negative Gearing & Capital Gains
No change to the status quo
Helping Seniors Stay at Home
This was a big change from last year’s approach when older downsizers were rewarded for freeing up larger homes. This year’s budget supports staying put by allowing pensioners to borrow against the value of their home in the form of a reverse mortgage.
First Home Buyers
There was no good news for this group unfortunately. No measures were implemented to address housing affordability or the supply of new housing.