Housing Reforms: Investors, Renters, and Homeowners React

Rosa Dhayan lives far from her university because it's one of the few areas she can afford to rent.

In short:

Asian Australians have mixed opinions about the housing and tax reforms.

Some investors plan to sell their properties due to changes in capital gains tax discounts.

Renters worry their costs could increase despite the government's reform to lower rents.

Rosa Dhayan feels the impact of Australia's housing crisis daily.

She lives in Mount Gravatt, a southern Brisbane suburb, because it's one of the few areas she can afford to rent.

Rosa travels two hours on public transport to her university campus.

The federal government has introduced major tax reforms to help people like Rosa.

Tax perks for property investors will be restricted from tonight.

The government says 75,000 more people will become homeowners, and house price growth will slow.

Only newly built investment properties can have losses deducted from income tax.

The government will scrap the 50% capital gains tax discount for investments over 12 months from July 2027.

Migrants are often blamed for rising housing prices, but their perspectives are rarely heard.

The ABC spoke to Australia's diaspora communities about the budget's housing reforms.

'Losses could be quite significant'

Zilong Qiao plans to sell his investment property before losing the capital gains tax discount.

Zilong Qiao supports the housing reforms.

The market is tough, and there are still losses, with no good returns.

Despite potential losses, Mr. Qiao still supports the reforms.

People can no longer afford homes on ordinary incomes, nor maintain a decent standard of living.

The budget was closely watched due to extreme anxiety around the rising cost of living.

Others say they are less likely to sell

Mary Sunarho has been investing in properties in Australia for over 14 years.

Ms. Sunarho owns two investment properties in Brisbane and believes the market offers stronger rental returns.

She would be less likely to sell due to the capital gains tax changes.

The negative gearing reform won't impact her because she focuses on positively geared investments.

The ideal housing policy needs to strike a balance between investors and tenants.

So investors are still willing to invest in property, while tenants can access affordable housing.

Potential investor not deterred by housing reform

Rico Halim owns his home in Leichhardt, Sydney, and plans to buy an investment property.

Mr. Halim was surprised but undeterred by the housing announcements in the budget.

The biggest concern is that reduced investor confidence could lead to less investment in new housing.

That would disadvantage renters, especially with upward pressure on rents.

Mr. Halim plans to buy an investment property in a regional area of New South Wales.

The new policy changes don't really change his overall strategy.

At the end of the day, the focus is still on finding high-growth locations and achieving solid rental performance.

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Victorian resident Darwin Wirawan believes more migrants will be able to purchase their first homes.

But the competition between them and people who have settled here will become more fierce.

Darwin Wirawan says the new budget policy will create more competition for first home buyers.

Mr. Wirawan's clients have become more diverse since he began his career.

They're not just Aussies or Indonesians, but also the Chinese, Cambodian, Vietnamese communities.

They're the new skilled migrants.

Changes work in 'favour' of would-be home owners

Lukas Pradhana bought a house for his family in Plympton, South Australia.

The budget announcements do not affect him at the moment, but could change his future plans.

If one day he decides to invest in a property, the policy would no longer reduce his taxable income.

From an investor's point of view, it's not very good.

But for people who want to buy to keep or buy to live in, it works in their favour.

With interest rates rising, Mr. Pradhana has been hosting international students to help pay his mortgage.

Jennie Liu is a certified public accountant in Melbourne who mainly works with the Chinese-Australian community.

She said the housing reform could force people to reconsider their tax arrangements.

Personally, she doesn't think this has come as a surprise to anyone.

Although the government has left some room for flexibility, overall it has reduced the tax cuts.

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