Federal budget tax changes are already being felt in the housing market, with the federal government saying softer auction results show first-home buyers are gaining a fairer shot.<\/p>\n
AAP reports national auction clearance rates held below 60 per cent for a second consecutive weekend after the budget, according to property data firm Cotality. Housing Minister Clare O\u2019Neil said the early signs were encouraging.<\/p>\n
\u201cWe want a level playing field between first home buyers and investors in the housing market and that\u2019s what we\u2019ve seen in the past two weekends,\u201d Ms O\u2019Neil said.<\/p>\n
The federal budget includes plans to abolish negative gearing for established properties and replace the 50 per cent capital gains tax discount with an indexation-based system. Treasury modelling cited by AAP suggests the changes would see home prices grow two per cent slower than they otherwise would.<\/p>\n
Morgan Stanley economists forecast home prices could fall as far as 10 per cent nationwide, driven by the tax changes and interest rate rises.<\/p>\n
Shane Martin, Director of Shore Finance Co<\/a> and a Torquay-based mortgage broker, said the budget had landed alongside another major pressure point for borrowers.<\/p>\n