Are you Prepared for Tomorrow’s Opportunities?
Are you Prepared for Tomorrow’s Opportunities?
Are you Prepared for Tomorrow’s Opportunities?

Are you Prepared for Tomorrow’s Opportunities?

Many people are betting that interest rate cuts and the recent surge in migration next year will reignite the market. 

The Albanese government’s budget forecasts a significant decline in net overseas migration (NOM) over the next few years due to their proposed policies. Hmm, I don’t believe them!

The first budget delivered by the Albanese government after their 2022 election victory, the NOM forecasted estimated that net migration would reach 400,000 in the 2022/23 financial year. 

Well – at least 528,000 people migrated to Australia in 2022/23, and instead of decreasing to 315,000 in 2023/24, nearly 400,000 people moved in.

Never let a crisis go to waste!

Talking property, the timing of a few variables seem to indicate that we might be in for another… dare I say it… boom? 

Potential interest rate cuts and population growth may not be the only catalysts to ignite a boom.

Here are some additional factors, given their timing, that might mean we are in for another wild ride. Not an exhaustive list, it’s just what I am keeping an eye on.

Before we delve into the summary, I want to note that this is merely a high-level analysis concerning the overall property market in Australia. You should never rely solely on this type of information to make investment decisions.

Planned Tax Cuts for 2025

Remember a tax cut also means an increase in borrowing capacity. 

From 1 July 2024, the Australian government will implement new tax cuts affecting all 13.6 million taxpayers. The notable changes include:

  • Reducing the tax rate from 19% to 16% for incomes between $18,201 and $45,000.
  • Lowering the tax rate from 32.5% to 30% for incomes between $45,001 and $135,000.
  • The income threshold for the 37% tax bracket will increase from $120,000 to $135,000.
  • The threshold for the highest tax rate (45%) will move from $180,000 to $190,000 (KPMG) (Treasury Australia).

First Home Buyers Grant and Other Initiatives

  • First Home Super Saver Scheme: This scheme allows first-home buyers to save for a deposit within their superannuation, with the potential to withdraw up to $50,000 from their super contributions for this purpose (Australia’s Money Matchmaker®).
  • Home Guarantee Scheme: Expanded to include 50,000 new places from 1 July 2023, this scheme offers three types of guarantees including the First Home Guarantee, the Regional First Home Buyer Guarantee, and the Family Home Guarantee, providing broader eligibility criteria (Housing Australia).
  • Help to Buy Scheme: Pending Senate approval, this national scheme would offer an equity contribution of up to 40% for new homes and 30% for existing homes to eligible buyers based on their income and property price caps specific to regions (Savings.com.au)

Government Subsidies or Programs for Home Ownership

  • Regional First Home Buyer Guarantee: Offers guarantees to first home buyers looking to purchase in regional areas, which could be significant with the proposed expansions of the scheme.
  • Various state-based initiatives: Different states offer various grants, concessions, and shared equity schemes to support first home buyers, like stamp duty exemptions and direct grants for purchasing new homes (Australia’s Money Matchmaker®).

The real question is…

What do you do next? Are you positioned well to make the most of the coming year?

Contact me & let’s talk strategy!

Warm regards and wise investing,

Shehan

Scroll to Top