Acreage Market Wrap - 4th July 2020
/Hi, my name is Greg Vincent and welcome to this week’s Acreage Market Wrap where I share an insight into How’s The Acreage Market?
The Real Estate Institute of Australia has welcomed, the draft report of the Independent NSW Review of Federal Financial Relations. Supporting the road to recovery.
In summary, the report noted a strong case for reforming the GST which is now 20 years old, and scaling back inefficient taxes, which includes stamp duty on property transactions.
“The REIA supports the call for the newly formed National Cabinet to commence the long overdue discussion to adjust the GST and remove inefficient taxes such as stamp duty on property transactions to boost economic growth at this crucial time and not let this report gather dust on the bookshelf as others have,” said Mr Adrian Kelly, President of the Real Estate Institute of Australia.
At a Glance:
Taxes are one of the factors determining investment in housing
The housing sector is one of the most heavily taxed sectors of the Australian economy
Stamp duties on the transfer of property are the second-largest source of state tax revenue (generating 24 per cent of state tax revenue) yet they are a highly volatile tax, with revenue fluctuating by over 50 per cent
A notable earlier review, the Henry Review stated stamp duties on conveyances were inconsistent with the needs of a modern tax system and should be replaced with a more efficient means of raising revenue.
“Economic analysis shows that economic activity in Australia can be lifted by shifting the composition of taxes from high economic cost State taxes to lower cost Australia-wide taxes, without changing the overall level of tax revenues.”
For more information about possible changes to Stamp Duty, you may like to check out the following links...
https://www.mcgrath.com.au/advice/articles/john-mcgrath-stamp-duty-pay-upfront-or-yearly-tax
Since Wednesday, another ten thousand first-home buyers are now able to apply for federal government assistance that could shave years off their mortgages.
The second intake of the much-anticipated First Home Loan Deposit Scheme is designed to give first-home buyers a leg-up in the property market by providing banks with a guarantee for up to 15 per cent of a property’s value.
It means struggling savers can secure their first mortgage with a deposit as little as 5 per cent and avoid paying costly lenders’ mortgage insurance.
Under the eligibility criteria, borrowers who have been approved for the scheme have 90 days to exchange contracts on a property, so we should see a lot of sales happening in the bottom end of the housing market over the next quarter.
For more information, see the link below...
Also, this week, John McGrath answered 3 important questions for anyone looking to invest in property, like:-
1. What’s happening with property prices?
2. What’s happening with weekly rents?
3. What should investors do now?
One of John’s tips was,
“Consider regional satellite cities or desirable lifestyle areas. They should get a great boost from more people working from home, which will incentivise regional relocations in coming years.”
...and I’ve already noticed an increase in enquiry from investors looking for quality ‘land-bank’ acreage opportunities around the fringes of Sydney.
To find out more about John McGrath’s tips check out…
https://www.mcgrath.com.au/advice/articles/john-mcgrath-rents-investments-and-what-to-do-next
How’s The Acreage Market?
Currently there are 402 acreage properties For Sale across the region. This total includes 230 acreage properties For Sale throughout The Hawkesbury, 123 throughout The Hills district and another 49 acreages For Sale within Sydney’s North-West acreage areas of Penrith and Blacktown.
There were 20 new acreages come onto the market this week, and there were only 4 acreage properties Sold this week (but that’s on top of the 36 acreages that were Sold over the past fortnight). Plus, there are currently 21 acreage properties ‘Under Contract’ across the region.
Out in the field, there were a lot buyers out & about looking at acreage properties this week. We had a good turn out at today’s Open Homes, even though it’s start of the school holidays and lots of people have been anxious to get away after home-schooling and the recent Coronavirus lockdown. Plus, there were quite a few buyers attending the midweek Twilight Viewings we held earlier in the week. Enquiry level for acreage continued to be strong but it was down slightly on last week.
Coming up this week, it will be very interesting to see what happens at this Saturday’s auctions of 11 Pitt Street, Windsor and 51-55 Cherrybrook Chase, Londonderry. There’s been lots of interest in both of these properties with several contracts issued. If you’re in the area on Saturday feel welcome to come along and check out either of these live auctions.
Finally, as I’ve mentioned previously, if you want to stay up-to-date with what’s really going on out there in the Australian property market make sure to follow the #OZpropertyAlive hashtag.
So, that’s it for this week’s Acreage Market Wrap.
If you’ve got any questions about anything I’ve shared this week or would like to discuss any of your acreage plans with me, don’t hesitate to get in touch.
Thanks for watching, stay safe and bye for now.
Regards
Greg Vincent
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