What the Federal Budget means for Property

Sarah Millar from realestate.com.au discusses what the Federal Budget will mean for the Australian Property Market.

This recent article from Sarah Millar is a good summary of the implications from the Government's third Federal Budget on our property market.

The article covers the following : 

REA Group Chief Economist Nerida Conisbee says overall the Budget will have little impact on the residential property market.

Negative Gearing

As expected there was no changes to negative gearing with the Treasurer saying the government didn’t want to “increase the tax burden on Australians who are just trying to invest”.

However, this seems to be looming as an election issue so the pros and cons of negative gearing will continue to be debated for the coming months.

Infrastructure

The budget outlined nearly $3 billion in infrastructure spending across the states, with roads a major focus. 

“The infrastructure spending is good, but the impacts on the property market will be more long term,” REA Group Chief Economist Nerida Conisbee says.

“It’s great for owners near the Melbourne and Sydney metro links, as well as for property around the Badgerys Creek airport site.

Commercial Property

Conisbee says the news is a bit better for the commercial property sector, with a number of Budget initiatives tipped to have flow on effects for the industry. 

"The company tax cuts will be good for office occupier markets and the ‘ideas boom’ spending on start ups is great for Sydney and Melbourne CBD office markets where these types of tenants like to locate,” Conisbee says.

Read the full article in realestate.com.au by Sarah Millar