Just wondering people’s opinions of whether last night’s Budget will bring back some interest in property again…
The Budget was aimed towards high income earners (as usual), and our accountant is very positive about property now, especially since the Superannuation Surcharge has been dropped.
What are your thoughts? I am not sure, but hoping…[blush2]
Regards,
DelThe problem that I have with the budget, it does little to encourage savings. The Treasurer is concerned that by 2020 there will not be enough money to pay for the health system. This is the tip of the iceberg, how will we fund retirement.
I would like to see more innovative ideas such as abolishing capital gains tax after 15 years to encourage long term savings. If we want to get mothers back into the workforce why not offer tax brakes to companies offering child care places
We must encourage savings, by simply handing out large tax cuts this will not encourage savings
Nigel Kibel
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My thoughts –
1. Rents could rise – tenants have more cash.
2. Could be inflationary and cause interest rates to rise.
3. People have more cash – more confidence to invest.
4. Less people on higher tax rate – reduce effect of negative gearingI am a high income earner and an extra 4,500 per year equates to servicing an extra 60 k on a pni home loan. This is huge. Houses are now 60k more affordable for me. Its the equiv of 8,500 per year pay rise (b4 tax). Its the uquiv of a 1 pct interest rate reduction. Its big. But then again only 5-10 pct of wage earners earn aboove 100k so maybe the effect will mostly be in high priced homes.
Only 3% of the workforce is in the highest bracket. The impact should not be that great.
I love the ideas of CGT being abolished after 15 years and tax breaks for companies providing child care.
My concerns lie with why the Labor Party is looking to stop the tax breaks going through because they believe it disadvantages lower income earners. I think these tax breaks are far more beneficial and positive for the overall economy than any I have seen in recent times.
I don’t think the lower income earners see that if higher income earners have more disposable income, they invest and spend more. More investment and spending means more jobs.
Robert Bou-Hamdan
Mortgage AdviserHi Wilandel
I think the budget will have little effect on property- there were no nasty surprises and no major incentives either.
Cheers
I disagree battleships. The roll on effect of more disposable income would mean more “toys” for the rich in the form of cars boats big TVs etc and the follow on economic boost which again breeds its own follow on in different areas of the workforce. Job creation in tourism and holidays as more can afford better escapes and in the not too distant future the extra IP’s they all will want.
Follow this with the interest rate hike and then the “woe is me” mentality wil again rear its ugly head and stablilse the property market again.
Why not be a player in the market. Life is not a rehersal, its the real thing guys. So gey out there and have some fun.
Woo hoo!!!!
DD
Buyers Agent (Dip Financial Services(FP)
Don’t sweat the small stuff,and it’s all small stuff!!
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