The federal budget will be announced tonight and is likely to provide tax relief for all income earners as a small gift prior to the next election!
Unlike last year’s budget, it is unlikely we will see any more negative news for property investors. Equally, we do not be expect any positive news either!
Last year’s budget signalled the abolition for investors claiming depreciation on pre-existing plant equipment in established properties, coupled with the end of travel deductions to visit your investment property.
When you combine:
- last year’s hit to investment property holding costs
- APRA regulatory changes making it much harder to borrow into
- The property market coming to a standstill as we predicted last July in our blog ‘Is This the Final Straw for the Property Market?’
- With a banking royal commission heaped on top for good measure – which is likely to result in even more red tape making it harder to borrow!
It would be a brave government who would slug property investors any further.
Our partner in Property Planning and Education for over a decade and the Chairman of the peak industry body Property Investment Professionals of Australia (PIPA), Peter ‘The Property Professor’ Koulizos has also contributed his views on the federal budget to Smart Property Investment. He has continued his call for regulation of Property Investment Advice, something we have been banging on about for 14 years, before most of the current ‘property investment businesses’ were even a twinkle in their founders eyes!”