About the new federal budget
When Treasurer Joe Hockey announced his second Federal Budget recently, it came with few surprises. Much of the information about the new budget and the decision to abandon the proposed super scheme had been leaked before the announcement.
Joe Hockey stated that the new budget is designed to help get the economy going again. This may well be true. The new $20,000 immediate business asset right-off will be a big help to any small business owner.
While there have been a few noticeable differences, the areas of housing affordability and sustainable housing were barely affected. That is good news in general for people who already own their homes and for investors who buy property.
We spoke with financial and real estate professionals about how the new Federal Budget will affect homeowners and buyers and here is what we found.
Changes in the federal budget
For small business owners– The new $20,000 immediate business asset write-off will be a big help to any small business owner that may be thinking of buying extra tools, equipment, and even a vehicle. In terms of property, if you are a small business owner, this additional deduction may help give you extra dollars in your pocket for property loan repayments or even building up a deposit for a future property purchase.
For Foreign investors – Foreign investors now have to come up with $5,000 for an application fee, which according to Sydney accountants is enough to keep housing affordable, but not enough to prevent foreign investors from buying. In their opinion, this is not expected to have much of an impact on property since most foreign investors look at high-end areas for property investing.
What you should know before buying property
The housing market in Sydney is on a nice upswing right now and that is expected to continue for quite some time. The budget won’t affect the historically low-interest rates and the current upswing in supply and demand.
There is a common belief among real estate and financial experts that the interest rates will continue to go down or at least not move up in the short-term. This is excellent news for borrowers and businesses, but it’s not so good for promoting affordable housing.
With the end of the financial year coming, now is a good time to be talking to your local financial planners as well as real estate agents, mortgage brokers, and accountants to understand how you can benefit from the latest budget changes. By doing so, it will allow you to plan your short and long-term business, wealth and property objectives.
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