CHANGES: 2025/26 EOFY HAS CHANGED THE PROPERTY LANDSCAPE (part 1):
FOR HOME BUYERS:
WOW - OK so…Have the governments’ changes to CGT and Negative Gearing made much difference for the average home buyer?
For an owner-occupier, the changes to CGT and negative gearing probably aren't going to have a direct impact on your tax bill. But they may have an indirect impact on your buying power.
The tax changes, combined with three interest rate rises this year — a total increase of 0.75% — have taken some of the heat out of the property market which can only be a good thing.
A flatter, more balanced property market can give buyers a little more breathing room. Less frantic competition, fewer runaway price increases and a little more time to think before signing a contract can all work in favour of the buyer.
The thing is, you still have to get into the market. If higher interest rates and the rising cost of living are making it harder to save a deposit, a softer property market doesn't necessarily make buying easier.
So, for owner-occupiers, I'd call this one win - sort of.
If you've already saved your deposit and can comfortably service a mortgage, a cooling market could give you more negotiating power and potentially better buying opportunities.
If you're still trying to build that deposit, however, the equation is a little different. Lower property prices don't help much if you're struggling to save enough cash to get through the front door in the first place.
In other words, the market may be getting friendlier for buyers — but getting ready to buy is still the hard part.
FOR HOME SELLERS:
For sellers, the new market means you might have to adjust your expectations about how quickly you can move on.
With fewer buyers competing and borrowing capacity under pressure, properties may take longer to sell and buyers are likely to negotiate harder.
However, this is still Australia…good properties will still attract buyers, as long as your pricing is on point.
In this market, presentation, realistic pricing and having your paperwork and property maintenance in order could make the difference between a smooth sale and sitting on the market wondering why nobody is interested.
For sellers, the message is simple: the market hasn't disappeared — but the days of naming your price or getting 20% above expectations at auction may have gone away…for now.
FOR PROPERTY INVESTORS:
This will require a Part 2.
