00:02The real estate market is in motion.
00:05Prospective young home buyers seizing the moment on the first weekend of auctions after
00:09tax breaks for property investors were wound back.
00:12A lot of investors are starting to get a bit nervous, so I'm expecting, especially with
00:17apartments, a little bit of a dip in the market, which I am already noticing.
00:21Unlike last week, the investor who is bidding against someone who wants to live in that
00:29home as their first home won't have the taxpayer by their side subsidising their bid.
00:37The changes to negative gearing in Tuesday's budget saw the immediate end of tax perks for
00:42property investors wanting to maximise profits and offset their losses on existing properties.
00:51The successful bidders on this South Melbourne apartment had spent more than a year trying
00:55to buy.
00:56Yeah, I think it's great to encourage young buyers rather than investors making more money
01:01all the time, giving us young people a shot at it.
01:05Critics argue the reforms could reduce rental availability and lead property owners to bump
01:11up already record high rents.
01:13That market has been slowing.
01:15Rental prices were flat in Melbourne, Adelaide, Perth and Darwin last quarter and up between
01:211.3 to 3.1 per cent in the other capitals.
01:25Vacancies also rose slightly across the country, from 1 per cent in March to 1.2 per cent last
01:30month.
01:31The opposition has vowed to reverse the changes if it forms government.
01:35Where they're going to increase rents, build fewer homes and kneecap young Australians by
01:41taxing their first home deposit.
01:43I think this will help to dampen rent price inflation.
01:47Economist Sol S Lake has spent 40 years calling for negative gearing to be abolished, saying fewer
01:53investors buying up existing houses is a good thing.
01:56It will reduce upward pressure on prices and create more opportunities for aspiring homebuyers
02:03to realise their aspirations.
02:04Realising the dream of home ownership.
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