Why Some Homeowners May Hold Instead of Sell After the Budget
By Leigh Martinuzzi | Martinuzzi Property Group – eXp Australia
The Federal Budget has created plenty of discussion around investors, housing affordability and the future of negative gearing.
But after reading a recent article from realestate.com.au, one point stood out to me. This may not just affect investors looking to buy property after the Budget. It could also influence what existing homeowners decide to do next.
In particular, the article discussed how some properties owned before Budget night may be covered by the grandfathering rules, even if they were owner-occupied at the time. In simple terms, this could mean some homeowners may look at their current home differently if they are thinking about upgrading, moving, selling or renting it out in the future.
That raises an important market question.
If more homeowners choose to keep their current home and turn it into a rental instead of selling, could that place further pressure on the supply of established homes?
The Sell-or-Hold Decision May Become More Important
For many homeowners, moving house has traditionally meant selling the current home, using the equity, and buying the next one.
That sale then adds another property to the market. It gives another buyer an opportunity, whether they are a first-home buyer, young family, investor, downsizer or someone looking to move into a particular suburb.
But if some owners now feel there is a stronger financial reason to hold onto their current property, that natural flow of established homes coming to market may slow.
This does not mean everyone will suddenly become a landlord. Holding a property is a serious decision. It involves lending, cash flow, rental return, tax advice, maintenance, risk and long-term planning.
But even a small change in owner behaviour can matter, especially in locations where quality stock is already limited.
Why This Matters on the Sunshine Coast
The Sunshine Coast has been dealing with limited housing supply for some time.
Good established homes in desirable lifestyle locations are not always easy to replace. Many buyers are looking for homes close to schools, transport, shops, beaches, hinterland villages, larger blocks or family-friendly communities.
In suburbs where people tend to stay for years, the number of available homes can already be tight.
So, if more homeowners decide to keep their existing home and rent it out rather than sell, it could add another layer to the supply challenge.
This is not about saying prices will automatically rise. Buyers are still cautious. Borrowing capacity still matters. Cost of living still matters. And every property still needs the right pricing, presentation and campaign strategy.
But supply is a major part of the market. If fewer established homes are listed, buyers may continue to compete strongly for the right properties, particularly homes that are well-located, well-presented and hard to replace.
It Is Not Just a Tax Conversation
The article also included comments from REA Group senior economist Anne Flaherty, who said this kind of carve-out could give some owners a stronger financial reason to hold property for longer. It also referenced REBAA president Melinda Jennison, who highlighted the importance of getting a valuation and speaking with a mortgage broker and accountant before turning an owner-occupied home into an investment property.
That is the key point for homeowners.
This is not something to decide based on a headline.
A property that has been a great family home does not automatically make a great investment. The rental return may not stack up. The loan structure may not be right. The maintenance costs may be high. Or the owner may need the sale proceeds to comfortably make their next move.
On the other hand, some homeowners may be sitting on a strong asset with good equity, rental appeal and long-term growth potential. For them, holding may be worth exploring.
The right answer depends on the property, the numbers and the owner’s personal situation.
Homeowners Need Clarity Before Making the Call
Before deciding whether to sell or hold, homeowners need a clear understanding of their current position.
What could the property sell for in today’s market?
What kind of buyer demand exists for that type of home?
What are similar properties doing locally?
What rental appeal might the property have?
How does the home compare against current competition?
Once those questions are clearer, the owner can then speak with their accountant, broker or financial adviser about the tax and finance side.
From a real estate perspective, the first step is understanding the property’s current market value. Without that, it is hard to properly compare the options.
What This Could Mean for Buyers
For buyers, the possible flow-on effect is simple.
If fewer established homes come to market, competition for quality properties may remain firm, especially in tightly held Sunshine Coast suburbs.
That does not mean buyers should panic. But it does mean being prepared is important.
Finance should be organised. Criteria should be clear. And when the right home becomes available, buyers need to be ready to act with confidence.
Even in a more cautious market, good homes can still attract strong interest when they are priced, presented and marketed well.
What This Means for Sellers
For sellers, this is a reminder that property decisions are becoming more strategic.
It is not always just about asking, “What is my home worth?”
Sometimes the better question is, “What role should this property play in my next stage of life?”
For some owners, selling will still be the best move. It can free up equity, simplify the next purchase and provide certainty.
For others, holding and renting the property out may be worth considering.
Either way, the decision should be made with proper advice and current market information, not guesswork.
Final Outlook
The negative gearing conversation is not just about investors. It may also influence what some existing homeowners choose to do next.
If more owners decide to keep their current home and rent it out rather than sell, this could keep established housing supply tighter, particularly in lifestyle markets like the Sunshine Coast where good homes are already limited.
At Martinuzzi Property Group, we help homeowners understand where their property sits in the current market. Whether you are thinking about selling, upgrading, holding as an investment, or simply weighing up your options, a current property appraisal can give you the clarity you need before making your next move.
We are not tax advisers or financial planners, but we can help you understand your home’s likely market value, buyer demand, local competition and sale potential. From there, you can have a more informed conversation with your accountant, broker or financial adviser.
If you are considering your next move, now is a good time to get clear on your options.
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