Property | Hutton Financial

The End of an Era for Negative Gearing?

For decades, negative gearing and the capital gains tax (CGT) discount have shaped the way Australians invest in property. Recently, with the Federal Government reviewing these policies ahead of the May 2026 budget, we could be looking at significant reform. In this article, we examine the proposed changes, including caps on investment property deductions and reductions to the CGT discount, while exploring the competing arguments from both sides of the housing debate. Whether you are saving for your first home or managing a rental portfolio, read on to find out what these potential tax shifts could mean for you and why they are happening.

Is Immediate Relief on your Mortgage Worth the Long-Term Cost?

The path to home ownership in Australia keeps getting tougher, forcing buyers and owners to consider flexible loan structures. These options can ease monthly repayments in the short term but come with an important caveat: you’ll pay substantially more interest over the life of the loan. If you’re weighing up a home loan option that defers part of the debt burden to the future, here’s a straightforward look at commonly used structures offering this temporary affordability.

The Real Cost of a 5% Deposit Mortgage

The government's 5% deposit scheme is a fantastic opportunity for first-home buyers, allowing you to enter the market sooner while avoiding Lenders Mortgage Insurance (LMI), which can easily save you $20,000-$30,000 upfront. However, it's important to look beyond this initial saving and consider the long-term trade-offs. Because a smaller deposit means a larger loan, the financial relief of skipping LMI can be quickly overshadowed by the strain of higher monthly repayments and the staggering amount of extra interest you'll pay over the life of the loan.

Balancing Property and Dividend Investing

As Australia steps into 2025, there's a careful sense of hope about the economy. Last year was tough, with slow growth and high prices, but things are looking up. Economic growth is forecast to improve, supported by easing interest rates, stabilising inflation, and rising household incomes. However, challenges such as cost-of-living pressures and labour market uncertainties remain in play. For investors, this presents unique opportunities in the property and dividend markets.

Making Your Money Work Harder After the Rate Cut

The Reserve Bank of Australia (RBA) has made a significant move by cutting interest rates for the first time in over four years, reducing the cash rate from 4.35% to 4.10% in February 2025. This decision offers welcome relief to mortgage holders, and with the possibility of further rate cuts later this year, many are now considering how to make the most of this change. Here’s a straightforward guide to help you decide your next steps.

When Is the Best Time to Retire and How?

Deciding when to retire is one of the most significant financial decisions you'll make. The right time to retire varies for everyone, influenced by personal circumstances, financial readiness, and lifestyle goals. Here, we'll explore key considerations for determining the best time to retire and how to prepare for a comfortable and fulfilling retirement.

Home is More Than Just a Place to Live, It’s a Smart Investment

Owning your home in Australia isn't just about comfort, it’s also a smart financial move. The property market down under is thriving, thanks to solid demand, with data confirming strong growth trends. Homeownership comes with financial perks like Capital Gains Tax exemption on your primary residence and a slew of government incentives designed to make buying a home more achievable. These include grants for first-home buyers and stamp duty concessions, all aimed at easing the financial burden of entering the housing market. So if you’re thinking about buying, know that it’s not only a place to live but a solid investment that could pay off big time in the long run.

Evolving role of the Bank of Mum and Dad

Buying an affordable house in Australia is becoming increasingly difficult, and we have noticed more parents are helping their kids get into their own first homes. If you are in the fortunate position to help your children out and you are planning to do so, there are certain implications that you need to think about before proceeding.

When Mum and Dad are Bankers As Well

Recent estimates claim that the ‘Bank of Mum and Dad’ is Australia’s ninth largest lender. Given the state of house prices, this comes as no surprise. Most parents want to help their kids, especially with something as important as buying a home. But it is important that things be done correctly. There is such a thing as ‘the wrong way to help’ when it comes to one generation trying to help another.