Tax changes see investors exit housing for childcare centres and service stations

Dan Murphys & Nido Clyde North sold for $18,050,000 at a 5.50% yield from 10 first-round expressions of interest. Residential investors are exiting the housing market and turning to commercial opportunities such as childcare centres, service stations and retail, pushing prices to record levels. Stonebridge Property Group has revealed that it has transacted $164.7 million across 29 assets nationally since May. It comes after the Federal Government handed down major property tax reforms on Budget night on May 12. Those reforms saw negative gearing limited to new residential builds, and the 50 per cent capital gains tax replaced by cost base indexation plus a 30 per cent minium tax rate. Investment properties purchased before May 12 are grandfathered meaning those investor owners can continue to take advantage of negative gearing and capital gains tax. Treasurer Jim Chamlers announced major property tax reforms in the May Budget National home prices fell 0.1 per cent in April, were flat in May (0%) in May, fell 0.3 per cent in June and a further 0.3 per cent in July. The declines followed three interest rate rises, in addition to major tax changes targeting investors. The changes ...