30pc rent increase warning echoes Labor\u2019s 1980s hikes<\/a><\/p>\n![\"SMSF](\"data:image\/svg+xml,%3Csvg)
<\/p>\n
Olga Ramos and husband Louie recently bought a new investment property off the plan through their SMSF. Picture: Tim Hunter<\/p>\n
These reforms have been paired with existing state first-home buyer incentives designed to funnel first-home buyers into the new build sector, including the $10,000 First Home Owners Grant.<\/p>\n
Loan Market chief executive Sam White said investors pulled back from established houses and the market in general, but a minority of investors were continuing to buy in the new build market. <\/p>\n
\u201cSome of the investors are continuing and they want the tax benefits (from building new),\u201d Mr White said, noting that the majority of would-be investors had adopted a \u201cwait and see\u201d approach. <\/p>\n
Mr White said the expectation was that investors would account for an increasing share of new build lending ahead.<\/p>\n
<\/p>\n
An artist\u2019s impression of a new development in Edmondson Park, an area that has attracted renewed investment activity from investors.<\/p>\n
B.Invested founder and buyer\u2019s agent Nathan Birch said a similar trend has emerged in Sydney\u2019s cheapest suburbs, where higher rental turns could offset the loss of gearing perks on established homes.<\/p>\n
\u201cFirst-home buyers and investors have been pancaked into the same markets,\u201d he said.<\/p>\n
\u201cFirst-home buyers are buying in the cheaper areas because their borrowing power had reduced. Investors want better cash flow because they\u2019ve lost negative gearing.<\/p>\n
\u201cIt means the cheap-end of the market is very strong, while the top-end and middle-end of the market are falling.\u201d<\/p>\n
Investor Olga Ramos recently bought an investment property off-the-plan in Billbergia development Grand Residences in Chatswood and said buying new gave them flexibility under current tax settings.<\/p>\n
\u201cWe\u2019ve really preferred off-the-plan \u2026 it lets us stay liquid while still positioning for future growth, rather than tying up all our capital upfront on an established property.\u201d <\/p>\n
\u2013 With additional reporting by Kaylee Cranley<\/p>\n","protected":false},"excerpt":{"rendered":"Labor tax reforms have launched a mass investor exodus from the housing market while squeezing the few remaining…\n","protected":false},"author":2,"featured_media":864023,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[64,63,99],"class_list":["post-864022","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-au","tag-australia","tag-business"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/864022","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=864022"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/864022\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/864023"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=864022"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=864022"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=864022"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}