Canberra's rental yield hotspots offer alternatives if CGT discount is slashed
If capital gains tax concessions are to be reduced, property investors may need to rethink the traditional growth-first strategy, with rental yield and cash flow resilience taking on greater importance in portfolio decisions.
Numerous Canberra suburbs with vacancy rates below 0.8 per cent are proving attractive to investors. (Image source: Lukesava/Shutterstock.com)
For decades, property investment in Australia has been driven by two core income engines: rent and capital growth. While both have always mattered, the tax system has historically reinforced the importance of long-term appreciation.
The current capital gains tax framework allows investors to receive a 50 per cent CGT discount on assets held longer than 12 months, significantly improving after-tax returns on growth.
But if those concessions were…
