Another property market blow as investors pivot after government tax changes | The Business

By ABC News (Australia)

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The property market has taken another hit with data showing a sharp drop in investor demand. Loans to investors fell 9 per cent in the June quarter, according to the ABS, as buyers voted with their feet on tax changes announced in the federal budget. But there is some money chasing new builds. Since May's budget announcements, investor enquiries on realestate.com.au have shifted towards higher-yielding rental properties, that are more likely to be a cashflow positive investment. Realestate.com.au senior economist, Angus Moore, says data from the online platform reveals investors are making more inquires about higher yielding properties, "which sort of makes sense when you think about the changes to negative gearing, which have the effect of reducing after tax returns for investors that are no longer negatively geared or cannot claim that negative gearing deduction against their labour income." Mr Moore said if you look at the capital gains tax changes in particular, about one in four

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