Today marked a significant moment as the federal government’s overhaul of negative gearing was put to the test at auctions nationwide.
Matt Beck, a hopeful first-time homebuyer, expressed optimism, saying, “Previously, we often found ourselves competing with numerous investors, but with the recent changes, that dynamic might shift, even if just a bit.”
Another observer, Annie Ird, noted that alterations in the market seem to be happening already.
“Properties that were initially set for auction are now being listed for sale, which makes me feel like there’s a bit of panic among people,” she observed.
Unfortunately, Matt and Annie didn’t succeed in securing a home in Sydney’s Inner West today.
The federal government’s changes to negative gearing policies may now influence how buyers approach the market.
“The investor who is bidding against someone who wants to live in that home as their first home won’t have the taxpayer by their side,” he said.
Andrew Wilson, chief economist at My Housing Market, said: “I think we’ll see fewer buyers. And there should be a transition period between fewer investors and more first home buyers.”
New rules mean any property purchased after 7.30pm on Tuesday can only be negatively geared until July 1 next year.
After that, it’s for new builds or property purchased before budget night only.
“They are aimed fairly and squarely at providing additional opportunity for young people,” Albanese said.
However there has been backlash with claims it won’t do much.
Shadow treasurer Tim Wilson said: “They’re going to increase rents, build fewer homes and kneecap young Australians by taxing their first home deposit when it’s invested.”
In pictures: The federal budget newspaper front pages
Treasury modelling predicts the changes will slow house price growth by 2 per cent over the next two years but it also warns it could push rents up, adding an average $2 per week.
“I think in the shorter term it will put house prices under pressure. There’s no doubt about that,” Wilson said.
