Scott Morrison has released the new Federal Budget 2017 and thereâ€™s some points in the property investment space that you should consider. Check our summary and explore who wins and who loses because of the Federal Budget:
First Home Buyers
First Home Buyers will be able to use voluntary contributions to their superannuation to save for a house deposit. Withdrawals will be taxed at a lower rate, but the amount you can contribute is capped at $15,000 a year and $30,000 all up. Both members of a couple can take advantage of the scheme.Â The new restrictions on foreign property owners (See Losers: foreigners) could take a little heat out of property prices in the East Coast capitals, which would also benefit first home buyers.
From July 1st, there will be a restriction on depreciation deductions for plant and equipment installed by previous property owners and also deductions for travel costs associated with visiting investment properties will be removed.
Apart from the 457 visa changes announced last month, Foreigners will also be affected negatively in the property space:
Extra Charge for properties left vacant (and an increase in their application fees)
Theyâ€™ll now have to pay the capital gains tax when they sell their main residence.
And Foreign ownership of new developments will be capped at 50 per cent.
Older Property Owners
Those over the age of 65 who downsize their home can pour up to $300,000 of the proceeds into their super fund. Even though is only expected to help up to 10,000 people a year.
On a more collateral way, inland regions between Melbourne and Brisbane will receive an investment of more than $8 Billion to build a line linking the two cities and improve the inland network which will most likely impact positively the property values in the inland regions affected by the railroad.
Similar to the Farmers situation, Western Australia will get new roads and rail, as part of a state-Commonwealth funding package. The Federal Government also agreed funding previously earmarked for the Perth Freight Link can be used on the Metronet rail project and upgrades to roads around the State which will also impact the property value in the area.