Home News Super tax changes won’t result in a rush to property market, experts say

Super tax changes won’t result in a rush to property market, experts say

Font size :

Despite fears that the federal budget crackdown on superannuation tax concessions could spur on the housing market, experts say that the rich are unlikely to suddenly rush into the property investments. The changes include a $1.6 million cap on the funds retirees could transfer from a super accumulation account into a tax-free retirement account.

According to Domain Group chief economist Andrew Wilson, changes in superannuation concessions would only affect four per cent of the market. And even then, they are unlikely to direct their money into property, with its high transaction costs, lower rental yields, and lower levels of capital growth predicted for most capitals.

“It will have a benign effect... There will be no noticeable rush to the property market,” Wilson said. “Those wanting a salubrious lifestyle are looking for income, and property won’t give them the returns.”

But BIS Shrapnel senior manager residential Angie Zigomanis begs to differ. He said that as negative gearing offers an attractive tax offset, the superannuation policy changes might “possibly” have an impact on the property market. Still, he pointed out that there are other options for tax minimisation.

“Negative gearing applies to all investments, so property isn’t the only alternative,” Zigomanis said.

Like Zigomanis, Real Estate Institute of Queensland chairman Rob Honeycombe believes that wealthy Australians might be motivated to minimise their tax in any asset, not necessarily property.

“The truth is, that people will choose the investment strategy that best fits their needs, their goals, and their current situation,” he said. “It’s virtually impossible to predict how the market will choose to go at this early stage.”

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate

The sprawling redevelopment aims to boost the supply of affordable housing in Sydney Read more

A new suburb will be built in west Melbourne A new suburb will be built in west Melbourne Mount Atkinson will become home to more than 22,000 people over the next 15 years ... Read more

Surging house prices threaten liveability in Melbourne Surging house prices threaten liveability in Melbourne Analysts warn the city could become just as unaffordable as Sydney, if property trends continue ... Read more

More Aussies would benefit from regional hubs linked to cities More Aussies would benefit from regional hubs linked to cities Shorter commutes could spur higher home sales in regional towns, analysts say ... Read more

More mortgage news and articles

Sponsored Links

Friday, Aug 18, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords