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The budget has brought in a new rule which will tax gains on residential property brought and sold within a two year period.
In addition there has been an allocation of additional funding of $29 million dollars to enforce taxation on property.
There has always been provision to tax on gains made in property transactions if the party involved is deemed to have purchased the property with the intention of selling for gain.
Clearly serious property investors will not be affected or indeed worried by this new tax rule as unless some unforseen event occurs, normally the intention is to purchase and hold for rental income.
As a result we do not see this new tax as having a great impact on the market.
Rental levels have come under pressure in recent months with a fall off in demand. It appears that this reduction in tenant availability coupled with the usual winter quietening of activity is following an increase in vacancy and a lengthening in the time to re-tenant.
Owners will need to keep the bigger picture in mind and adjust to suit the current environment in the knowledge that we are expecting a stronger period to return after the winter season.
Well-presented homes with good heating are still favoured so landlords will need to ensure that their property is competitive in presentation and amenities.
The sales market is still receiving strong enquiry and whilst the intensity that we saw through 2014 has lessened we are still seeing a consistent and good level of sales and prices.