The budget has been the main talk for this month. The return to surplus in 3 years is a tall order and one that is reliant on the mining boom continuing as well as both parties not blowing the budget in their campaigns prior to the next election.What we don’t know is how China will manage its economy over the medium term as it battles with high inflation. The most likely scenario is China’s economy slowing but not enough to dampen its hunger for our commodities. With the new mining tax announced some areas of Australia and in particular, Queensland are worried the government has just killed the economy. Regional areas linked to the mining industry are hoping this won’t send the big mining companies overseas. We will wait to see whether this will affect the property market in these areas. The only budget announcement directly related to property was the unveiling of the new tax in NSW for properties over $500,000. This will have very little effect on investors. A property worth $600,000 will incur an additional $200; hardly a deal-breaker.The main property markets on the east coast are unlikely to be affected much by this budget as we continue to see supply struggle to keep up with demand. Areas with good infrastructure and strong yields will still hold their value.Ultimately, we see very little effect on the housing market. Things will slow down over the coming months and interest rate rises take effect but prices and demand will continue to rise over the next few years. Brisbane will be the next mover, with predicted 30% gains over the next 3 years!