How the federal budget could push first-home prices up
The new federal budget is likely to lift brand-new home prices, forcing more demand into a supply-constrained market and increasing housing costs for first home buyers.
Full transcript
More demand, which is then going to increase the housing prices. What effect is the new budget going to have for first home buyers? What we're seeing is that the CGT discount, so the capital gains discount for investors on established properties, and as well as negative gearing for established properties has been completely scrapped.
Now what that's going to do is that's going to force that pool of investors back into the brand new housing market. Now for first home buyers, the benefit that you have as a first home buyer is that there's multiple grants that are applicable when it's brand new properties. This is going to force more demand into already supply constrained market, which is then going to increase the housing prices.
So if this is something that you've been thinking about, it's definitely the time, take the opportunity. Buy now, because I guarantee that we're going to see prices rise over the next six months to one year.