Invest
‘A good budget for investors’
With the budget's guts now laid bare, property experts have had time to think about what it means for investors. As it turns out that, for the most part, it is a good one.
‘A good budget for investors’
With the budget's guts now laid bare, property experts have had time to think about what it means for investors. As it turns out that, for the most part, it is a good one.
After last year’s budget that saw investors reeling with the loss of asset claiming and travel expenses, they were able to catch a breath with this year’s budget.
However, this is because there were no measures that directly targeted property investors at all.
Tyron Hyde, director of of Washington Brown, said to Nest Egg's sister site, Smart Property Investment, that the cliché of “no news is good news” rings particularly true here.
“There was hardly anything... except for the infrastructure spending is good,” Mr Hyde said.
Mr Hyde said that companies that perform office fit outs saw a boon with the extension of the $20,000 instant write-off to June 2019.
“Other than that, there wasn't anything really addressing housing affordability, I think it was all in last year's budget; [it] was a big property play and as we predicted yesterday, there wasn't anything really touching property,” he said.
Simon Pressley, managing director of Propertyology, said that while there were not any specific funding given or taken away from investors, it was still positive.
“I do think it's a good budget for property investors, because in a broad sense, the budget has potential to increase consumer confidence and business confidence, and that's something that … since the onset of the GFC in 2008, Australia and most parts of the world have lacked,” Mr Pressley said to Smart Property Investment.
“It's more of a psychological win than anything else.”
The infrastructure spending is, as covered previously, something that — while it may not directly impact investors — should still be considered and can funnel back into their respective areas’ economies.
“How's it affect you and I as a property investor? It doesn't in a direct location sense, they're transport related projects and they're not really public transport. They're really more the movement of freight.
“What that does is when you improve the efficiency of moving goods around the country, that improves productivity, which creates more jobs, which increases corporate profits, and … when they've got confidence in their business, they can then recruit more people, create more jobs or increase salaries.
“There's an indirect knock-on effect for the whole Australian broader economy.”
For Peter Koulizos, chairman of the Property Investment Professionals of Australia, the infrastructure spend can be an asset for investors to identify where future hotspots may be.
“If investors can find out where the infrastructure is going to be built, and in particular let's say new train stations in Sydney and Melbourne, because it's the larger metropolises where public transport is more important than, say, the smaller capital cities like Adelaide and Hobart, then if you can buy within walking distance of that new train station, and technically walking distance is 400 metres or five minutes, then you could do quite well,” he said to Smart Property Investment.
Another piece of the budget that Mr Pressley was pleased with was the personal tax cut, which he saw as “another psychological win”.
“It’s been described as $10 a week or an extra hamburger a week; let's not dress it up any more for what it is, it's not a lot but the fact is that it's going in that direction,” he said.
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more
Property
Retirement communities: a pivotal element in meeting Australia's housing targets
The Retirement Living Council (RLC) has recommended that retirement communities should be considered a vital part in the Australian Government's initiative to fulfill the Housing Australia Future Fund ...Read more
Property
Australians adjust financial strategies amid changing property market dynamics
The 2023 calendar year saw Australian borrowers acquiring a total of $300.9 billion in new loans for property purchases, marking a 12.7% decrease from the previous year. Read more
Property
Split home loans unlocking doors for Aussie buyers
Australians are teaming up to dive into the real estate market and seize the advantages of home ownership, with the trend of split home loans surging as family and friends unite to buy properties ...Read more
Property
Real estate investment: Spotting high-growth potentials
Investing in real estate has long been a favoured approach for Australians looking to grow their wealth. Read more
Property
Granny flats become Aussie families' cost-effective solution to soaring living costs
As the cost of living skyrockets, a forward-thinking trend is sweeping across Australia – granny flats are becoming a favoured living arrangement for older Aussies seeking comfort and proximity to ...Read more
Property
Homebuyers grapple with extended savings period amid affordability crisis
Gone are the days when an Australian dream home seemed just within reach. The path to homeownership in Australia has extended by at least two arduous years, as revealed by the latest insights from ...Read more
Property
Hybrid development unlocks new potential for NDIS housing in metro hotspots
In a ground-breaking strategy aimed at addressing the stark imbalance between the location of Specialist Disability Accommodation (SDA) developments and the actual areas of demand, Aligned Disability ...Read more
Property
Property prices boosted by housing policies: RBA
The central bank has outlined the “pervasive” impact that policy has on property. Read more