Come off boil in time to stop budget priority

Story appeared in: Inner West Times | May 16th, 2018

LAST year investors were targeted with the loss of asset claiming and travel expenses. This year investors were not directly targeted.
The release of 2018's budget introduced a slew of changes that could raise the profitability of portfolios Australia-wide and avoided bringing any changes to negatively impact on residential property investors.
The major aspect for investors to consider is a $75 billion investment in transport infrastructure over the next 10 years, which will see accessibility improve between properties.
The Roads of Strategic Importance initiative will see $3.5 billion being funnelled into the upgrading of existing roadways to improve the access for essential service, markets and employment opportunities; investors will no doubt see property values rise as these roads will improve tenants' access to key facilities.
It also didn't address any initiatives with housing affordability.
It was disappointing to see that the first home buyer grant remains unchanged and unfairly skewed toward new build properties and no transfer duty concessions to downsizers either.
House prices in the country's hottest markets came off the boil just in time to let the Government off the hook for this year's budget.
After growing by about 80 per cent since 2012, Sydney house prices took their biggest hit this year since 2015, with a 2.6 per cent drop over the last quarter. In Melbourne, prices mellowed, with growth stalling to just 0.1 per cent.
With our population constantly growing and a short-lived cyclical downswing, we have heard several economists predict prices to rise again by 2021.
Clearly housing affordability is a problem here to stay.
Amanda Gould and Maria Hodgson

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Publication: Inner West Times | Section: news | Author: Mark Kirkland | Story ID: 137135 | Viewcount: 2140