Investors shun new homes despite negative gearing and CGT benefits

Prime Minister Anthony Albanese’s housing tax reforms are facing investor resistance, with mortgage demand falling sharply across a major broker network. Australian property investors are questioning tax incentives to buy new homes, with fresh lending figures exposing a sharp slowdown and buyers warned of costly valuation risks. Loan Market Group figures show demand for new mortgage lending across its network has fallen 24 per cent since January, with investor lodgements down as much as 44 per cent in some markets. From July 2027, federal reforms will restrict negative gearing on established investment homes bought after the May budget announcement. RELATED: Ex-Block stars eye six-figure Vic home deal Aussie adults-only museum’s wild new chapter Uniting Church lists prime Barwon Heads site for $3m Newly built properties retain the existing treatment and the option of a 50 per cent capital gains tax discount. But just 4.8 per cent of respondents to an annual Property Investment Professionals of Australia (PIPA) survey said the preserved benefits made them more willing to buy new housing. More than half, 50.7 per cent, preferred established properties, while 17.3 per cent said concer...