Property investors are bracing for a shake-up in tax rules as part of May's federal budget, with some claiming changes will make the market even tougher for first home buyers.
Prominent buyer's agent Sam Gordon has warned the rumoured policies risk creating an economy of haves and have-nots.
The former farm boy who ditched high school and took to buying and renovating run-down homes now says he owns more than 150 properties and runs a fast-growing buyer's agency.
When asked what he wants to see in May's federal budget regarding housing, his answer was clear: "Don't touch policy. Every time you touch policy, you stimulate the market. Every single time."
With just 17 days to the budget, speculation has exploded around changes for property investors.
One option being discussed is dumping the 50 per cent capital gains tax discount for investors in favour of an inflation-based model. Possible changes to negative gearing are also on the table.
Nationals MP Barnaby Joyce has already voiced his opposition, saying he would not support a change to the capital gains tax at all.
Speaking to 7NEWS podcast The Issue, Gordon issued a stark warning about negative gearing changes: "I would bet you a million bucks. If they scrap negative gearing, we'll see one of the biggest rental price booms Australia's ever seen."
Prime Minister Anthony Albanese won't go into detail on budget plans but has spoken about "intergenerational equity" and not harming the hopes of those trying to buy their first home.
However, Gordon argues the government's prized 5 per cent home deposit scheme has already done that by driving up property prices, calling it "crazy, absolutely crazy."
"I genuinely believe if things continue the way they are, we will move into a two-class economy of haves and have-nots," he said.
Property investors are closely watching the upcoming federal budget, as potential changes to tax rules could significantly impact the housing market. The debate over capital gains tax and negative gearing has intensified, with experts warning of unintended consequences for renters and first home buyers. The government faces pressure to address housing affordability without destabilising the market.
