Winners from new housing policies

While there is still a lot of consultation to be done in this area, there are some expected outcomes, says a new report by Colliers International.

The report lists the benefits as the following.

• The purchase of new-build properties has been incentivised via the maximum value of the First Home Grant set at $10,000 versus $5,000 for existing premises.
• The eligibility value cap sits higher for new builds than that for existing premises.
• The purchase of a new-build property, after March 27, 2021, seemingly also carries an additional incentive with the bright-line test period continuing to be capped at five years in comparison with 10 years for existing residential property.
• The treatment of interest deductibility with new builds may, again, differ from the balance of the market, but this is up for further consultation.
• The build-to-rent sector is also likely to benefit – potentially both existing and new builds – due to the Government’s desire to introduce more supply of higher quality rental accommodation. However, consultation is underway for more “definitive” guidance.

Chris Dibble Colliers International research national director says the changes to the residential investment landscape will see alternative strategies explored by an increasing number of investors.