This article is for general information purposes only and reflects the state of information at the time of publication. It is not legal or financial advice. Always seek professional advice tailored to your specific circumstances before making decisions.
With the release of each Federal Budget, there are always a mix of outcomes for different segments of the economy. Property owners and potential buyers are well and truly in the mix for 2023/2024. Bliss Conveyancing breaks down the budget measures that will significantly impact the property market in Australia.
Boosts for Property Buyers
The 2023 Australian Federal Budget has created a range of targeted measures and initiatives aimed at stimulating the real estate market, improving housing affordability, and supporting first-time homebuyers. These proactive steps by the Government are set to create a favourable environment for property buyers and pave the way for a stronger and more inclusive housing market. Here are the highlights:
First Home Guarantee
This scheme has now been extended to friends, siblings and other family members starting from July 2023, meaning that it is not limited to singles or couples. Buyers who have previously owned a home may also be eligible, provided they have not owned a home for more than 10 years.
Build to Rent Projects
For projects that meet the criteria and commenced after 9 May 2023, there will be an increase in the depreciation rate to 4%.
Infrastructure Investment
The 2024 budget emphasizes infrastructure investments and regional development, which can significantly impact home buyers. Improving infrastructure in regional areas can create employment opportunities, attract investment, and alleviate housing demand in major cities. By promoting regional development, the budget seeks to enhance housing affordability in metropolitan areas by providing alternative locations for buyers to consider. This may result in more balanced property markets and increased options for home buyers across the country.
Increased Supply of Affordable Housing
Recognizing the importance of affordable housing, the 2024 budget allocates funds for the construction of social and affordable dwellings. This commitment benefits those in need and creates opportunities for property buyers. A diverse housing market, including affordable options, provides a wider range of choices for buyers across various income brackets, promoting inclusivity and diversity within the property sector.
More detailed information is available in this article by Investment Property Magazine. Don’t forget to review our blog for related tips such as utilising superannuation and building equity. Please don’t hesitate to contact our team of experts if you would like further information.
