New LVR limits and a possible capital gains tax

Two potential property rule changes are on the horizon. The Reserve Bank has proposed easing LVR "speed limits" from December, allowing more low-deposit lending to 25% for owner-occupiers and 10% for investors. According to economist Kelvin Davidson, this is likely to proceed and will benefit investors most.

A proposed 28% capital gains tax (CGT) for investors is more uncertain, as it depends on the election. While it may not stop price rises, it signals a move toward lower property investment returns.