Canberra property: decision to leave negative gearing in place will boost confidence

The big property news coming out of the federal budget is the government’s decision to leave negative gearing in place.

This is a great outcome for investors and will increase confidence in property investment in Canberra.

Further, the RBA’s decision to reduce the cash rate sees interest rates at an all-time low, meaning that investing has never been more affordable.

Investors can borrow money cheaply and look to buy good quality and well-priced investment properties.

In Canberra, brand new apartments start from below $300,000, showing that there are plenty of great investment opportunities available.

We predict that investors will look to sell older properties and replace them with brand new properties.

Newer properties are typically more appealing to tenants and also offer more tax advantages, with greater deductions at tax time.

Matt Peden is an agent at Independent Property Group Belconnen