What the budget means for Queensland rental property investors
You might've heard a lot of talk about the federal budget this month, and there's good reason for it. The month of May marks budget season, and each year the federal government and local state governments release their report on where money is going to be spent.
As the federal and state budgets impact home owners, business owners, workers and everybody else under the sun, it's crucial that people keep up to date with any changes.
Fortunately, the 2014-15 budget has a lot to offer investors of Queensland rental properties.
One of the more significant initiatives outlined in the federal budget this year is the large boost to infrastructure. By the years 2019-2020, the Australian government aims to deliver a grand total of $50 billion into infrastructure throughout the country through the Infrastructure Growth Package. However, when funds from local governments, commonwealth state and private sectors are taken into account, this adds up to a sizeable $125 billion over the same period.
Where this money will go, however, is something that many home owners and investors will be happy about. The government stated that funding will be targeted at projects that will create jobs, boost economic growth and aid productivity.
Some of the outlined projects include a brand new bypass in Toowoomba, the WestConnex development in Sydney and an upgrade to Bruce Highway in Queensland. Not only will these projects all help to make the surrounding areas better places to live, work or visit, but they'll play a large part in creating jobs and supporting the economy, too.
The government will also be rolling out $5 billion over a five-year period for the Asset Recycling Initiative. This is expected to "encourage the states and territories to sell assets and recycle the sale proceeds into new productivity-enhancing infrastructure", according to Minister for Infrastructure and Regional Development Warren Truss.
Forecasts for a stronger future
Aside from projects, the federal budget also included forecasts as to where the economy is headed in the future.
In the budget's economic outlook, the federal government commented that the economy is expected to grow slightly below trend, while the national unemployment rate will rise slightly.
Meanwhile, the government said the near-term outlook for the household sector is looking bright. The government acknowledged that more people are investing in real estate, and household wealth is rising.
What this means is the next year could be a positive time for property investment. With more people buying dwellings, this activity can turn into value growth for existing home owners, which can lead to strong capital gains. The trick is to get the right property education and wealth coaching to ensure you're meeting your goals.