How The New Australian Federal Government Affects Your Property Investment
The results of the Australian 2022 federal election are in, and with the huge swing in the Labor Party’s favour, the majority has spoken and Anthony Albanese is our new Prime Minister, taking power from the Coalition after almost a decade in office.
As a Queensland Buyer’s Agent, I’ve seen so many people suddenly suspend their plans to grow their wealth through investing in property, attributed solely to the pending outcomes of this election.
While this change in government has caused a lot of property buyers to pause their search and wait for any major shifts in housing policies, it’s all done now and I’ll explain why you should continue your own property investment journey, even with a different federal party running the country.
Let me put your mind at ease!
I totally understand why there was a pause in people buying in the lead up to the federal election this year.
During Australia’s previous federal election in 2019, Bill Shorten announced some potentially drastic changes to real estate, taxing, franking credits and more.
Consequently, the ALP lost that year.
Soon after, property buying and real estate investment returned to normal again as people felt a little more confident.
Given people’s reactions this year, it seems that the 2019 event is still fresh in everyone’s minds. However, 2022 was a completely different approach by the Labour government. This time around, Labor opted for a more moderate campaign, meaning that policy differences in this election were minimal.
So, here’s what property buyers need to know now about the recent government changes when it comes to their real estate goals going forward.
What does the Labor Government mean for real estate buyers?
The Australian Labor Party has committed to introducing a range of updated policies designed to improve housing affordability and ownership going forward, however nothing particularly major in terms of introductions or policy overhauls.
In a nutshell, here are all of the real estate hot topics that people are most concerned about right now:
1. Captial Gains Tax
At this point, there are going to be no changes to the current laws, policies and regulations around Australian Capital Gains Tax.
2. Negative Gearing
Again, despite people’s recent concerns, at this stage, there are no changes to current laws, policies and regulations around Australia’s approach to negative gearing too.
Labor decided to reconsider its 2021 proposed changes to negative gearing, instead promising to “maintain existing regimes for negative gearing and capital gains tax” during the party’s tenure following the 2022 election.
3. First Home Loan Deposit Scheme (FHLDS)
This was originally introduced in 2020 as an initiative designed to assist Australian first home buyers purchase their first property with as little as a 5% deposit. To this day, the FHLDS provides an opportunity for Australian first home buyers to enter the property market with a much lower deposit than what is typically required. With the change in federal governments, this will largely remain unchanged, however it will be expanded by the ALP in the form of points (4) and (5) below.
4. Help To Buy Scheme
A new Help to Buy scheme is expected, which involves an equity contribution from the Federal Government of up to a maximum of 40% of the purchase price of a new home or up to a maximum of 30% of the purchase price for an existing home for 10,000 Australians each financial year.
Under this scheme, property buyers will be able to purchase a property that they intend to live in with a deposit of as little as 2%, while participating lenders finance the remainder of the purchase.
5. A Regional First Home Buyer Support Scheme
This is a new scheme that will provide a government guarantee of up to 15% for eligible first home buyers in allocated rural regions. So, all they need is a 5% deposit, and they’ll also avoid paying LMI mortgage insurance.
6. Housing price cap reviews
Continuing on from the Labor party’s planned expansion of the first home guarantee, the party also promised to conduct six-monthly reviews of the scheme’s price caps in both the capital and regional areas that determine the maximum price an eligible applicant can pay for their new home.
As you can see, when it comes to buying real estate, it’s pretty much business as usual at this point for the majority of property investors.
However, the above is a heavily summarised version of everything and I do recommend speaking directly to me or your financial advisor for more in-depth detail.
Buying and investing in Queensland real estate is still an outstanding option
Despite everything that has happened with the 2022 federal election, real estate investment – especially in Queensland – is still offering some excellent property opportunities for people, despite the recent change in government.
Of course, it’s early days for Australia’s new federal party and I’m sure there will be changes on the horizon. However, that’s why having a Property Buyers Agent like myself and my team at Worth Property Investing can help you navigate these changes to make the right decisions at the right time.
As property experts, we keep up to date with all market shifts and policy updates, so you always have the latest information to make excellent property purchasing decisions.
Are you looking to purchase a property in Queensland?
Purchasing a property on your own is challenging. There’s so much to consider and so many different factors that can influence your decision.
However, with the right Buyer’s Agent on your side, you can make your property decision with confidence, safe in the knowledge that government schemes, laws and policies have all been taken into consideration and you’ve received the right expert advice.
So, if you’re looking to buy a home in Queensland, speak to me and my team.
Worth Property Investing will help you buy the right Queensland property
My team and I are passionate about helping you make the right home purchase that will contribute towards achieving your lifestyle and property goals.
Think of us as your property buying partner, here to support you in making the ideal property decisions. As your trusted, licensed Buyer’s Agents, we do everything from searching, connecting, researching, bidding, negotiating and securing the best properties for you.
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