Is buying an investment property still a good option?

There is currently a shortage of rentals available in the market, so the demand for rental property is certainly there. However prospective landlords need to be aware of increasing costs of compliance as the new government looks to implement a warrant of fitness programme for rentals.

The brightline test to remove property speculators from the market is to be increased from two years to five years, meaning that any money made on the sale of a property within that period (that is not the family home) will be liable for income tax.

These changes could affect those not only purchasing new homes, but transferring them into a Limited Trading Company (LTC).

On the positive side the changes in the LVR restrictions that took place on 1 January involved loosening the deposit requirements for investors to 35% from the current 40%.

At Eightfold we keep up-to-date with all the changes that are happening in the housing market. If you would like advice on how to structure or manage your investment property portfolio to work with the new rules, or would like a no obligation chat about navigating the residential investment housing market to achieve your goals, just give us a call on 0800 881 886.

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