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The Tasmanian budget has been handed down and there are a few things that investors should keep an eye out for that could raise their portfolio's value, as well as assist potential first-time investors and target foreign investors.
Delivered on Thursday, the Tasmanian budget for the 2018–19 financial year has some bits and pieces that could help improve the profitability of an investor's portfolio due to an improving economy, but nothing that directly targets existing local investors.
First-time investors and foreign investors, on the other hand, saw some changes that could impact how they operate in Tasmania:
The First Home Owner Grant grants first home owners in Tasmania $20,000 for newly constructed homes. Those who have homes newly constructed and owner builders will see the grant eligibility being extended from 1 July 2018 to 30 June 2019 inclusive.
While this has no real use for existing investors in Tasmania, for those who want to start investing in the Tasmanian market, this could be an avenue to start rentvesting. However, first-time investors must consider that they have to live in the property themselves, which would be a period of time that no rent is collected.
Foreign investors will be faced with a Foreign Investor Duty Surcharge, which sees an additional 3 per cent of the dutiable value for all purchases by foreign residents and an additional half per cent of the dutiable value for all purchases of primary production land by foreign investors.
The budget measures that could indirectly assist investors by boosting the economy, and therefore boosting the value of their portfolio are:
In financial year 2018–19, the Tasmanian government plans to spend $888.2 million on infrastructure, which includes:
In financial year 2018–19, the Tasmanian government plans to spend $70.8 million on the economy and job growth, which includes:
In financial year 2018–19, the Tasmanian government plans to spend $438.8 million on the health and education, which includes:
Budget is defined as the estimation of expenses made over a specified time for the purchase of goods or services.
Property refers to either a tangible or intangible item that an individual or business has legal rights or ownership of, such as houses, cars, stocks or bond certificates.