July 2021 Market Update

by Hamish Wilson on Thu Jul 2021
July 2021 Market Update

Some property investors won't pay higher taxes after Government changes...

It’s hard to believe we find ourselves in July now, there has certainly been more than enough to keep us all more than occupied. 

Another important date has rolled through for the Healthy Homes Standards, we are now on a 90 day compliance for any new tenancy signed today onwards, boarding houses must comply from today.  Thankfully, as you will know, we have been chipping away at this for quite some time, so we are not expecting any great pressure when new tenancies commence.

I see that the Government has recently come out and admitted to a “significant” problem with one part of the Healthy Homes Standards meaning some landlords may have been buying bigger heat-pumps and heaters than what they may actually have needed to.  Watch this space, but I’m not holding my breath for any “correction” soon.

I note the local market has taken no notice of the Government's tax changes for property investors.  Rents are as strong as they have been for three years and stock is still on the lower side of the norm.  Sure we have seen some owners capitalise some of their gains and exit the market, again this adds to the supply squeeze, meaning the long term buy and holds will perform even better going forward.

The tax changes for property investors may change the rules of the game that we have been accustomed to, but when one door closes another opens, differing your investment strategy will mean not all property investors will pay more tax.  You would have heard that new builds will be exempt from the changes so new-build-investors won't pay more tax.  But, you probably didn't know that: boarding houses, relocatable homes, commercial properties, overseas properties and some renovation work will also be exempt?

Investors who have a diversified portfolio are able to (more or less) carry on as usual.  While the door on purchasing existing properties (and doing little to them) is closing for tax deductibility, there are many paths that property investors will now find more attractive than previously.

We truly appreciate your business and the team and I are always just a phone call away.  We are always available for a free chat and are happy to share our experience and knowledge wherever we can be helpful.  

Hamish Wilson

Hamish Wilson

Qualified builder + 18 years in the Police + investor = the property guru! Hamish leads a fantastic team, creates an enjoyable workplace and still finds time to shoot skeet and wrangle three young sons.