Investor forced to abandon new home after bank slashes loan over tax changes

Investor Sam Coert was told her borrowing power had changed after she had already bought a home. Picture: Jeremy Piper A Sydney woman who recently signed contracts for a home purchase has revealed her horror after learning she could no longer get a loan for the property she was now committed to buy due to recent tax changes. Investor Sam Coert said what followed was a nasty turn of events that saw her forced to surrender the holding deposit she had just paid and stake a desperate scramble to get out of the deal she had only just signed. The exercise entrepreneur in Sydney’s south had thought she was well on her way to expanding her property portfolio, having pulled out equity from a previous investment in Perth to fund her upfront costs. Working alongside a buyer’s agent, Ms Coert selected a house in the northern Melbourne suburb of Craigieburn, signed the contract, and spent over $1000 on a holding deposit. But just as she celebrated the purchase, the government announced a range of tax changes in the May federal budget, including restrictions on negative gearing. The tax benefit allows investors to offset losses on their investment against their taxable income, with anyone who pu...