The Money Puzzle Could CGT changes unlock the housing market?
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Oct 31, 2023 Stuart Wemyss, a renowned property expert and mortgage broker from ProSolution, dives into the stagnant Australian housing market and how Capital Gains Tax (CGT) reforms could provide a lifeline. He discusses expanding CGT discounts for long-term investors and applying small business retirement rules to property owners. The conversation also highlights challenges posed by rising interest rates and the nuances of navigating interstate property investments. Wemyss offers practical insights that challenge conventional thinking on revitalizing the market.
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Housing Market in Paralysis
- The housing market is in paralysis because neither renters nor investors benefit under current conditions.
- Despite rising prices and yields, investors are leaving due to high mortgage rates and tightening rental regulations.
Incentivize Long-Term Rentals
- Offer landlords an extra capital gains tax discount if they rent properties continuously for 10 years.
- This encourages long-term rentals, reducing tenant turnover and improving market stability.
Using Small Business CGT Rules for Property
- The small business retirement exemption allows selling assets and rolling proceeds into super to avoid paying CGT.
- Applying this to property could build retirement savings while attracting landlords back into the market.