Westpoint Real Estate in Merrylands, New South Wales, Australia | Estate agent

Westpoint Real Estate

Locality: Merrylands, New South Wales, Australia

Phone: +61 2 9637 9565

Address: Shop 5/258 Merrylands Road 2160 Merrylands, NSW, Australia

Website: http://www.westpointrealestate.com.au

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24.01.2022 ==> Will we never learn? Urban sprawl is not the answer Back in the late 19th century, Melbourne went through a massive land boom. As the population of the city was skyrocketing, so too was the demand for a place to live. Land prices rose along with demand and swaths of what were orchards and market gardens began to be subsumed in this frenzy. Mortgage brokers, banks and land banks were encouraging what we would now call "mum and dad investors" to speculate on land. Sound fam...Continue reading

24.01.2022 == Forecast: The Official Cash Rate Will Fall To 1% This Year == -------------------------------------------------------------------------------------- The official cash rate will fall to 1% this year and the Australian dollar will drop sharply, due to factors such as weakening Chinese demand for Aussie property and Donald Trumps policies, warned Paul Dales, chief Australia and New Zealand economist at London-based Capital Economics.... Despite a rebound in growth during the last quarter of 2016 and a surge in commodity prices, the Australian economy will face stronger headwinds this year, forcing the RBA to reduce borrowing costs, said Dales. Speaking at Capital Economics annual conference in Sydney, Dales said a forecasted slowdown in the Chinese economy this year would reverse the recent surge in commodity prices, which in turn would affect demand for Australian housing and house prices. The housing market wont support GDP as much as in recent years, he said, noting that the RBA had overestimated the strength of the economy. Far from the rate rise many pundits were expecting for 2017, Governor Philip Lowe would have to slash the official cash rate from 1.5% to as low as 1% in order to keep inflation above its 2% target. The RBA wont raise rates in 2017 or likely in 2018, and I wouldnt be putting much money on a hike in 2019 either. In fact, with the housing market slowing, the labour market weakening and inflation staying below target, its possible that there will be cuts this year to 1%, Dales told The Guardian. Capital Economics noted a weakening in the Chinese economy this year, as last years huge monetary stimulus has worn off and the government has increased its efforts to rein in a credit binge that has seen the nations total debt balloon to nearly 250% of GDP. The implications for Australia were important, Dales said, especially in a property market that has continued to defy the expectations of a slowdown by posting double-digit price rises in Sydney and Melbourne last year. It cant go on much longer, Dales said. The banks are tightening lending and raising mortgage rates so the market will slow down.

23.01.2022 The Commbank Future Home Insights report has identified that Australians are turning to new methods to increase their buying power and enter the property market. The report identified trends including population growth, urban living trends, and the rise of multi-unit dwelling construction and discovered nine methods that home owners were using more and more often to get into the market. Collaborative buying... This is where "Co-housers" typically own or rent smaller-sized dwellings that are part of much larger developments. These larger developments will have communal areas, such as storage areas and laundry rooms. Consequentially, each house can be smaller and more affordable. Group loans Siblings and friends are teaming up to split the cost of buying a home. Analysis by CommBank shows that the number of applications with two or more applicants is growing, from 64% in 2014 to 67% in 2016. Communities in common By 2030, new dwellings in Australia will average just 119 square metres in size, which is about half the size of the average home today. To compensate for these smaller private living spaces, developers and architects are designing communities that encourage people to share common areas. Joint-ventures and syndicates This is where groups of people, such as siblings, friends, and common interest groups are banding together to enter the property market as a group. Guarantor or shared equity loans Guarantor loans, or providing equity in one home to help support the buying of another (with that equity released once the value of the bought home rises) are being used by parents to assist their children. Crowd housing Online crowd housing platforms are connecting homebuyers who share common interests with property developers and architects. It's interesting to see how these trends are developing, and they certainly help provide an insight into the way people will live in the future, allowing property investors to buy property which remains relevant and in demand as the needs of those who will dwell in their properties continue to change and evolve.

21.01.2022 ==> Chinese Will Spend Billions On Real Estate In 2017<== Despite the new curbs enforced by some foreign governments on Chinese real estate investors, the latter remains undaunted. According to a new report from Juwai.com, a Chinese-language international property website, Chinese investment in global real estate will be approximately $104.5bn this year. Last year, Chinese real estate investors spent a record-setting $133.7bn on global real estate. While the report predict...s that Chinese international investment will be lower this year, it would still rank among the top three years on record. Separate data supplied by the Foreign Investment Review Board (FIRB) indicates that Chinese buyers were approved to purchase $23.8bn of property in 2015-2016, and $18.4bn in 2014-2015. Juwai.coms estimate of aggregate property investment encompasses real estate purchases made by corporate investors and individual, or retail-level, investors. [Last year was] the first time in history that Chinese buyers acquired more than AU$130 billion of international real estate, said Sue Jong, Juwai.coms chief of operations. The 2016 total represents a 25.4% increase over 2015 and an 845% increase over five years. Our forecast suggests 2017 will also be one of the top three years on record. Jong noted that investment flows have decreased markedly from their peak, while remaining strong by historical standards. Capital controls, bank lending standards and foreign buyer taxes have combined to wind back the clock to 2015, she said. According to Juwai.com, the top five countries for Chinese investment by dollar value last year were: United States Australia Hong Kong Canada United Kingdom Australia is particularly attractive to Chinese investors due to its physical proximity to China. Investors from the mainland are also attracted by Australias world-leading 26 years of recession-free economic growth.

20.01.2022 ==== > Big 4 bank or boutique lender? <==== Approaching one of the big four banks is many peoples first choice. Its completely understandable why people turn to the most well-known banks when getting a loan. When you do all of your banking with one financial institution, you unconsciously build a relationship with that brand, so you naturally lean towards your own bank first when youre in need of finance....Continue reading

20.01.2022 Foreign Investors Are Losing Their Grip On The Aussie Property Market It appears that Aussie first-home buyers arent the only ones struggling to gain a foothold in the Australian property market. According to National Australia Banks latest Residential Property Report, the proportion of Australian residential properties being snapped by foreign investors has continued to decline into the September quarter. During Q3, the overall market share of foreign buyers in new and es...tablished property markets fell to their lowest levels since 2012, with foreign buyers less prominent in Victoria, NSW and Queensland, stated the report. NAB indicates the decline is broad-based, and applies to houses and apartments, new and existing. Foreign investors in the property sector accounted for just 10.2% and 6.4% of new and existing property purchases during the September quarter, continuing the slide first discerned in mid-2015. NAB, citing feedback from survey respondents, said the influence of foreign buyers was waning due to the tighter lending conditions imposed by banks. Earlier this year, ANZ told mortgage brokers it would no longer accept mortgage applications in which 100% of the income being used to fund the applications was of foreign origin. Some state governments have also applied a surcharge on stamp duty for properties purchased by non-residents, which may have deterred investments. The renewed strength of the Australian dollar, along with the continued rapid house price growth in Sydney and Melbourne, could also be contributing to the slowdown in foreign investment. In terms of new property purchases, NAB said that foreign investors were less prominent in Australias biggest cities. In Victoria, their market share fell to 15% in Q3. This followed a sharp jump in foreign buying activity in Q2 to 21.7% of sales ahead of an increase in the stamp duty surcharge on foreign buyers of Victorian property, stated the report. Foreign buyers were also less influential in New South Wales, where they accounted for just 8% of total demand the lowest level since Q1

19.01.2022 Changes to negative gearing policy could cause a mass sale of negatively geared properties and an increase in rental prices, according to an internal RBA memo. The RBA recently released an internal briefing note under freedom of information laws, which said that the potential negatives of making negative gearing less attractive included a potential increase in rents and a large-scale sale of negatively geared properties though only if changes were not grandfathered.... On the flipside, the note cautioned that the interaction between negative gearing and the capital gains tax may encourage chasing of capital gains ... as it can be purchased using higher leverage than shares, for example. Furthermore, the memo said that any change which discourages negative gearing may be good from a FS [financial stability] perspective and noted that negative gearing can encourage speculation with investors bidding up housing prices. Ken Morrison, CEO of the Property Council of Australia, noted that the memo was prepared in 2014 and was not official advice. It was input and the thinking at the time before APRA [Australian Prudential Regulatory Authority] introduced measures that the RBA more recently, and over the last six months, acknowledge have been effective in cooling elements of the housing market, he said. In reply to the release of the 2016 federal budget, Opposition Leader Bill Shorten last week detailed Labors plans to address housing affordability. Building a stronger budget demands an honest look at housing affordability, and tax subsidies such as negative gearing and capital gains that make the problem worse, Mr Shorten said. Mr Morrison said the Property Council accepts that the RBA were not modelling the federal oppositions policy, but the memo clearly flags that changing negative gearing would impact rents. This memo confirms that policy makers have real concerns about how renters would fare under policies that make negative gearing less effective, he said. We again call on the opposition to release its modelling on the impact of its proposed tax changes on rents and the property market.

19.01.2022 Despite the housing affordability crisis being labeled as "the biggest issue" for people in NSW less than two years ago, there was little announced to address the issue at the state budget on Tuesday. Soaring house prices in recent years saw a $4.3 billion housing affordability package put front and centre in last years budget. This included measures to help out first-home buyers, such as abolishing stamp duty on properties under $650,000, and a number of other measures mak...Continue reading

19.01.2022 => Theres been a lot of talk lately about a property crash <= As Gilbert K. Chersterton said, "there is only one thing certain and that is nothing is certain", but frankly, I cant see it happening because the government would step in to make sure it didnt. Heres three reasons why they cant afford to let the property market slide.... Reason 1. Self preservation Nobody likes losing money. And any time people lose money its hard for a government to survive. Take WA for example. Property prices fell a mere 4.46% in Perth and the government got kicked out. If nothing else, no government wants to go into an election with voters losing money. So if prices started falling you can expect self-preservation to kick in and the government do anything they can to boost it back up again. Reason 2. The construction industry is too valuable to them Construction is the third biggest industry in Australia behind health care and retail. And if property took a nosedive then the multi-billion dollar construction industry would take a hit as well. Imagine the mess. Thousands of unemployed tradies along with suppliers going out of business would be catastrophic. Thered be less taxes collected and more unemployment benefits paid out. What a disaster. Reason 3. People spend the equity in their houses Its quite common for people to borrow against the value of their home to make big purchases like a renovation, a car or even a wedding. And even more importantly, many people use their house as equity to buy or start a business. Or to buy a new property as an investment. A drop in house prices would wipe out this huge source of money which is so important to the economy. And the government needs this money to keep flowing back in.

19.01.2022 Negative gearing and the federal election What does it mean for investors? If theres one topic that is leading the press coverage in the property industry right now, its the contentious issue of negative gearing. We know that if elected, Labor has spoken about demolishing negative gearing as we know it and reforming the entire policy but what does this actually mean for the property market? Will Malcolm Turnbull's predictions of it smashing house prices come true? High...ly unlikely. If the Liberal government return to power, all policies are expected to remain unchanged. In the event that Labor did get elected and did indeed bring their 'election promise of changing negative gearing to fruition, lets look at what we know and why we are NOT worried about the future of the Australian property market. 1. The prediction for market prices is a positive one Were not worried that we could be faced with a situation where house prices could dramatically decrease, because the leading property commentators and experts arent worried about this either. Mark Steinert, Chief Executive of Stockland (Australias largest property developer) has come out in the Australian Financial Review as saying "At the end of the day, house prices are unlikely to adjust so much that it would really change that affordability" 2. Its not going to affect properties you buy NOW Even if it all does come about, Labor will limit negative gearing to new housing only from 1 July 2017. They claim that investments made before this date will not be affected by the change. All the more reason to make the most of the current climate and take a close look at opportunities like the exceptional Queensland offering below. 3. If history repeats we could see rents increase For a period back between 1985 and 1987, negative gearing was temporarily removed and during that time rents in the capitals of Melbourne and Sydney escalated. Could we see this impact again? Will rents dramatically rise? From our point of view, we LOVE negative gearing, its a solid policy that we believe is great for investors and the country in general. However, with the above knowledge we feel at ease that no matter which way the polls go in the end, there are definitely great things in the future for Australia's real estate market, and for our Property 4 Profit investors.

18.01.2022 ==> Prepare for the worst, hope for the best, get middle ground <== Adam Zuchetti This week’s beat-up about house prices has been greatly exaggerated, though. So I want to try and provide a bit of balance and reason to the situation, and set the record straight on what is actually happening across the country. Some markets have higher values now than they did 12 months ago....Continue reading

18.01.2022 The top 10 investor search localities on Investar ==================================== Queensland rather than NSW is the favoured state for property investment, according to a survey of investors by the Investar group. More than a third (34 percent) of investors indicated Queensland as their first preference for investment, just ahead of NSW (31 percent) and Victoria (22 percent).... WA (7 percent) and SA (5 percent) attracted lmited interest. The survey was at odds with actual searches on the Investar website, as analysis of the last 120,000 searches over the past three months, showed more than 43 percent of potential investors were actually looking for opportunities in New South Wales, compared to 33 per cent in Queensland. It revealed a preference for more affordable regional locations. MOST-SEARCHED-FOR LOCATIONS ON INVESTAR 1- Brisbane City 2- Southport, QLD 3- Gold Coast, QLD 4- Logan Central, QLD 5- Wallsend, NSW 6- Newcastle, NSW 7- Northern Brisbane 8- Hunter Region, NSW 9- Central Coast, NSW 10- Labrador, QLD

18.01.2022 ----- Capital Gains Tax: What every investor should know ----- ================================================== It may sound boring but in this respect the truth is, what you dont know can bite you in the back pocket and take a huge chunk out of your profits! From the second you sign a contract to buy a property, you will be introduced to a world of taxes that seemingly never end, including stamp/transfer duty, land tax and capital gains tax....Continue reading

17.01.2022 (((((((((((((((((((((Property market a war zone)))))))))))))))))))))))) Investors have been warned that Australian property is in a strange place right now, with a few key battles on the horizon. Charles Tarbey, CEO of Century 21, recently told The Smart Property Investment Show that the marketplace is changing, and investors need to make sure theyre ready for the potential challenges and opportunities that lie ahead.... I mentioned this to a group of our sales agents only the other day. If youre in the eastern suburbs of Sydney in recent times and I say recent times because I can see a change coming through you feel like youre on the Greek island of Mykonos: youve just got the deck chair out and youve got the cocktail in your hand, and the suns shining and people are walking past throwing money at you because they want to buy that property, he said. If youre over in Perth, its like being in Afghanistan youre in a war zone. Youre having to battle with buyers, youre having to battle with sellers, youre having to battle with valuers, having to battle with banks. However, Mr Tarbey said such markets present more opportunities for negotiation, and are perhaps more sustainable than whats been occurring in some Sydney markets. He cautioned that while the real estate market moves in cycles and can be a bit of a rollercoaster ride, investors need to make sure they ride the kiddies rollercoaster to minimise the ups and downs. To do so, he said, they need to buy within their means, and keep an eye on stock levels. The flood of stock that could come through if we have an overseas collapse in China or the US and those investors dont complete transactions here in this country of off-the-plan sales [then] there could be a dumping of stock, he said. This could be of particular concern for inexperienced investors who have bought multiple off-the-plan properties, he said. All agents like to talk the market up, we like to think its okay but the reality is were in a very strange place right now. I think that those people who bought their homes and they settled in them great, stay there, youre not going to lose money unless you sell. Those who have been playing the investors market out there that are not experienced, that have been buying properties some have been buying two, three, four properties off-the-plan Theyre probably going to be sitting there a little bit nervous right now. He said savvy investors will find opportunities as the reality of the new marketplace takes shape. I think those investors [who have been waiting] are probably the smartest ones, because if theyre starting to cash up, there may be some good opportunities for them in the year to come. Mr Tarbey cautioned, though, that being indecisive as the market shifts could be problematic. If youre sitting on the fence, youre probably going to get splinters in your backside, he said.

16.01.2022 PROPERTY INVESTORS BEWARE recent changes to lending practices could leave you hamstrung and unable to grow your portfolio unless you take appropriate countermeasures. If youre an established property investor theres a strong possibility that youre in for a rude shock over the next few years. Over the last 12 months, property investors have seen some of the most profound and disruptive changes in Australian property lending history. Commentators believe that property inve...stors with more than $1.5 million in debt will be among those hardest hit by the recent legislative changes. These changes date back as early as 2014 when the Australian Prudential Regulation Authority (APRA) identified the steady growth of financed property as a threat to the stability of the banking sector a finding that led to legislation being passed where banks were forced to increase the amount of capital they hold against their residential mortgage exposures. It also included other measures specifically designed to make it more difficult for investors to get a loan, such as: 'Stress test' requirements designed to determine if you could afford your loan in the event of interest rates rising sharply The removal of negative gearing advantages for investors Restrictions to 80% LVR for investors and 70% LVR for SMSFs Raising interest rates specifically for investors Highly qualified investors are now getting rejected at higher rates than ever In other words, strategic management of your loans and debt is no longer a nice-to-have its absolutely critical for investment success. In simple terms, youll now need larger deposits, and have to conclusively prove your ability to service loans throughout their term. And if you have plans to build an extensive portfolio, things become even more complicated Because highly qualified investors are now getting rejected at higher rates than ever. And many banks are now reluctant to lend past $1.5 million. Of course, theyll never admit it to you. But its a fact. And if you have serious plans to grow your portfolio over the next few years, these changes are bound to put a spanner in the works... Which could potentially lead to a much lower retirement income, and extended years in the workforce.

13.01.2022 Locating your next boom suburb ========================= Do you know how to tell a hotspot from a 'not-spot'? Finding the perfect property investment location for your next purchase isn't as hard as it sounds. Here's how. Why is location so important?...Continue reading

13.01.2022 >> The doomsdayers will be right but only for a short period<< Ever heard the phrase that the bubble is going to burst? If you havent, then you have been hiding under a rock. It is a phrase that gets heard at BBQs, parties, from the taxi driver, the guy at the pub and anyone else that is willing to say that they know their stuff but are unable to back their facts, except that growth has been quick and that it happened in America and Japan....Continue reading

12.01.2022 -------- Attributes every investment property should have ---------- ================================================= The truth is that property investing is actually quite straightforward. Its unlikely that youll need 20 properties, or that youll need to use complex, high-risk investment strategies, to create a financially comfortable or even wealthy retirement through property. ...Continue reading

11.01.2022 Chinese to build new $1bn Gold Coast city Vast sugar cane lands on the northern tip of the Gold Coast have fallen into Chinese hands in a $1 billion-plus deal that could see the rural landscape transformed into a new city by a Chinese theme park entrepreneur. Chinese company Songcheng Performance Development is striking the deal to give it control over a giant swath of land in the Norwell Valley between Brisbane and the Gold Coast....Continue reading

11.01.2022 === 4 ideas for apartment renovations === 1. Install flooring with acoustic properties If you desire the minimalist look of bare floorboards or parquet flooring, you'll have to put down some soundproofing underneath to comply with regulations (and prevent complaints from your downstairs neighbours). It works both ways however, so you won't be deprived of sleep if they have a loud party every so often. A carpenter can help you select and install your choice of wooden flooring.... 2. High shelving Storage space tends to be at a premium in apartments. Incorporating shelving into a room can solve a storage crisis while staying within a modest budget. In general, permission for shelving is generally granted from the body corporate without too much hassle. Shelving is a great way to make use of 'dead space' such as areas above doorways or hallways. Consider hiring a handyman to put your shelves up. 3. Fixtures and fittings Apartments often have outdated fixtures and fittings. Simple changes such as replacing worn light switches and power points can help to modernise the feel of an apartment. New light fittings themselves can also have a great impact but you will certainly need strata permission for this. Legally you'll need a licensed electrician so please don't attempt to do it yourself. 4. Painting and wallpapering Painting is an easy win when it comes to renovating your flat, and don't neglect wallpaper either. As a feature wall, patterned wallpaper can transform a room and make a real statement. Painting is one of the easiest jobs to get permission for and one you can certainly have a go at yourself. Although if you're painting an entire apartment it's probably best to hire a professional painter. See more

09.01.2022 ===Foreign Buyers Hit With Increased Taxes And Charges=== ------------------------------------------------------------------------------------ Foreign property buyers will be hit with increased taxes and charges of more than $600m over the next four years in a government-led effort to reduce housing affordability pressures. The biggest blow for offshore property buyers will be the change to their capital gains made on property and their strategy of holding properties without ...occupying them. As of Tuesdays budget, foreign and temporary tax residents will no longer be exempt from capital gains tax when selling their main residence in Australia. Moreover, existing properties held prior to this date will be grandfathered until 30 June 2019. The withholding rate on capital gains tax that foreigners must settle when they sell property will increase to 12.5% from 10% beginning on 1 July. Currently, the withholding tax is only taken when a foreigner sells a property worth $2m or more. However, under the governments new regime, it will now apply to the sale of properties worth $750,000 or more, widening the pool for revenue collection. All of these changes in capital gains are estimated to add $600m into government coffers over the next four years. Mirroring the Victorian Labor governments new impositions on foreign buyers, Treasurer Scott Morrison also introduced a charge (to the tune of $5,000) on foreign owners of residential property when their property is unoccupied or isnt genuinely available on the rental market for at least six months per year. This measure is intended to encourage foreign owners of residential property to make their properties available for rent where they are not used as a residence and so increase the number of dwellings available for Australians to live in, Morrison said. The new charge went into effect following Tuesday nights budget, and will be levied annually.

09.01.2022 =====> Spec home or a New build? <===== Spec homes are brand-new properties that are completed (or nearly completed) before theyre sold. While new builds are more customisable, spec homes can greatly reduce the decision-making process and time until ownership. Take a look at the pros and cons of each option, to help you decide which one is right for you. New build...Continue reading

09.01.2022 === New residential buildings to fall by 50% === New multi-residential buildings for the whole of Australia are forecast to plummet by 50% by 2020, but there will be a tsunami of supply over the next 12 months, except in NSW. This is according to analyst and forecaster BIS Shrapnel, which has released its Building in Australia 2016-2031 report.... It revealed, however, that NSW will buck this forecast trend and remain undersupplied for some time, even though it, too, will experience a slowdown in home building. Nationally an all-time high of 220,100 dwellings were started in 2015/16, driven by stock deficiency and record low interest rates. BIS Shrapnels report says that new dwelling starts are expected to continue to track at a historically high level over the next 12 months. However it did say it will slow down over the next three years because of the population growth slowing and a backlog of dwellings being completed, resulting in supply outpacing demand. Dr. Kim Hawtrey added: New commencements of multi-residential dwellings are forecast to fall by 50% over the next four years, from around 107,000 currently to just 53,800 by 2019/20. With investors facing finance restrictions and first home buyers sidelined, it will be up to upgraders and downsizers to help cushion the decline in activity. But were not confident, given that the national stock deficiency will have been largely satisfied by 2017. The report also forecasts that overseas migration will continue its downward trend for the next few years, resulting in a weaker outlook for population growth. Dr. Kim Hawtrey said: Low interest rates have unlocked significant pent up demand and underpinned the current boom in activity, but with population growth slowing and a strong backlog of dwellings due for completion, new supply will soon start to outpace demand. He added that this will see the lack of dwellings gradually reduced, with most key markets display showing signs of oversupply, except for NSW.

08.01.2022 ==> Prepare for the worst, hope for the best, get middle ground <== Adam Zuchetti This weeks beat-up about house prices has been greatly exaggerated, though. So I want to try and provide a bit of balance and reason to the situation, and set the record straight on what is actually happening across the country. Some markets have higher values now than they did 12 months ago....Continue reading

08.01.2022 === Investors Lose: Changes To Negative Gearing, Depreciation=== ------------------------------------------------------------------------------------- Investors will lose $800m worth of tax benefits after changes were announced to negative gearing and depreciation in the Federal Budget announced last night. Whilst negative gearing remains available to landlords, rules are being tightened around what can be claimed, specifically related to travel expenses and depreciation dedu...ctions. Under the new rules, which will come into effect from July 1, depreciation deductions for plant and equipment items (such as dryers, curtains and ceiling fans) will only be allowed if the investor actually bought them. In the past, investors were able to claim deductions for all plant and equipment items in the property at the time of acquiring the asset, according to each items effective life. This new integrity measure is expected to help the ATO retain $260 million over the next four years. The changes will apply to any items purchased after budget night (Tuesday May 9), but existing investments will be grandfathered (ie exempt from the change). In another blow to investors returns, a new negative gearing restriction has been introduced in relation to travel expenses. As of July 1 2017, investors will no longer be able to claim tax deductions for travel expenses related to inspecting, maintaining or collecting rent for a residential rental property. Introduced in an effort to address concerns that many taxpayers have been claiming travel deductions without correctly apportioning costs, or have claimed travel costs that were for private travel purposes, this change is set to save the government around $540 million over the next four years.

07.01.2022 ==> Housing market status for financial year 2016-17 revealed <== The latest CoreLogic Property Pulse has revealed the ups and downs of how the housing market fared over financial year 2016-17. Over the previous financial year just past, CoreLogic stated that combined capital city dwellings rose 9.6 per cent, a greater increase than financial year 2015-16, which saw a rise of 8.3 per cent....Continue reading

07.01.2022 == Victorian Government Unveils Latest Housing Reforms == ---------------------------------------------------------------------------------- The Andrews Labor government has launched a series of reforms designed to address the states housing affordability and housing supply crises, as well as help more first-home buyers enter the property market.... Stamp duty & discounts Stamp duty will be abolished for first-home buyers purchasing a property valued below $600,000. From July onwards, discounts will also be available for property purchases between $600,000 and $750,000 on a sliding scale, regardless of whether theyre new or established homes. Treasurer Tim Pallas said the governments stamp duty changes would help an estimated 25,000 Victorians purchase their first homes. We promised we would tackle housing affordability and that's exactly what we are doing, he said. Many people aren't looking for mansions. They're just looking for that first step on the ladder so they can get a roof over their head, so that they can plan for their family's future. Tax on vacant residential property The government will introduce a new tax levied at 1% on vacant residential property in Melbournes inner and middle suburbs. Owners of such properties will be encouraged to make their vacant properties eligible for purchase or rent. Exemptions will be made if the property in question is a holiday home or if the owner is overseas. This will send a really strong message to people that if you are effectively banking an empty property and denying that to the market and contributing to the lack of supply, then there's something you can do about it, Premier Daniel Andrews said. You can simply pay the tax or you might go see a real estate agent. Co-ownership plan Meanwhile, in a move aimed at assisting people who can afford the mortgage payments but lack a down payment, the government has announced a new co-ownership plan. As part of a pilot scheme valued at $50m, the government will purchase up to 400 homes, taking a 25% share in the properties. This way, aspiring first-home buyers wont need such a large deposit and can enter the market sooner. Eligible applicants need to earn $95,000 a year for couples and $75,000 a year for singles. Other reforms Last week, the Andrews Labor government announced that 100,000 housing blocks would be rezoned to be made available for sale, creating 17 new suburbs in Melbournes key growth zones. Also last week, the government said the First Home Owner Grant (FHOG) would be doubled in regional Victoria (from $10,000 to $20,000, starting on 1 July). This will help thousands of Victorians purchase their first home.

05.01.2022 The Reserve Bank of Australia has delivered the decision of its monthly board meeting. In a widely anticipated result, the RBA has today opted to hold the official cash rate at its record low of 1.50 per cent for another month. All 38 experts and economists surveyed by finder.com.au tipped the board members to keep the status quo unchanged, and it did.... Many of the experts said it is a matter of so far so good for the RBA, adding there appears to be increasing RBA scepticism about the overall effectiveness of further rate cuts at this time. If there is a problem, Australian Associated Press chief economist Garry Shilson-Josling said, its not that interest rates are too high. BIS Shrapnels Richard Robinson said there is no need to cut rates when unemployment rate is steady, and economic growth is also currently sufficient to keep it steady. Plus, the RBA needs to let [the] housing market cool further, Mr Robinson said. But many of the experts are predicting a rate cut later this year, or early next. HIA economist Shane Garrett said given that economic growth is moving in the right direction, that the RBA will wait and see how Augusts rate cut pans out before making another. More directly, Raine & Horne executive chairman, Angus Raine, said the rate cut will likely be before Christmas. Both Domain senior economist, Andrew Wilson, and Laing+Simmons MD, Leanne Pilkington, forecast the next cut would not be before Q2, 2017. Mr Wilson also said the RBA will be monitoring the impact of the Augusts cut, as well as waiting for the release of next months inflation data. [It] will be also alert to recent sharp house price increases in Sydney and Melbourne. In making her prediction, Ms Pilkington cited recent reports about the overall Australian housing market cooling and Sydney, in particular, ranking among the most at risk globally of a housing bubble. "But the reality is much less dramatic, she said, adding the RBA leaving interest rates unchanged today is appropriate.

05.01.2022 ATO factsheet released on the new withholding tax regime 17 May 2016 A factsheet has been released by the Australian Tax Office (ATO) with more information on the new withholding tax regime.... Under the new law, vendors selling a property for over $2 million will need to apply for a clearance certificate to avoid the purchaser withholding 10% tax from the purchase price. The objective of the new law is to ensure foreign residents pay 10% tax on any profits earned from the sale of a taxable Australian property. The new legislation will start on 1 July 2016 and the factsheet explains how only an Australian resident can be granted a clearance certificate. It also reveals: Clearance certificate A clearance certificate can be applied for at any time, including before a property is even listed, and is valid for 12 months. To obtain one, a vendor must complete an online application form from www.ato.gov.au/FRCGW, which will be available from 27 June If the vendor is automatically assessed as an Australian resident, a clearance certificate will be issued electronically within days of the application being submitted. If there are data irregularities or exceptions, the clearance certificate will be provided within 1428 days. Higher risk and unusual cases may take longer. Multiple vendors If there are multiple vendors selling the property, it is the total market value of the property that determines whether withholding is required by the purchaser. The amount of withholding will be in proportion to each vendors interest in the property, with the total equal to 10% of the propertys market value. Multiple purchasers Each purchaser must withhold in proportion to their percentage of the total purchase price. Variation applications Where the vendor is not entitled to a clearance certificate, but believes a withholding of 10% is inappropriate, they can apply to the ATO for a variation Reasons for a variation could include: a foreign resident not making a capital gain on the transaction (for example, because they will make a capital loss or a CGT rollover applies) a foreign resident not otherwise having an income tax liability (for example, because of carried-forward capital losses or tax losses) a scenario where there are multiple vendors, only one of which is a foreign resident. For more detailed information, visit www.ato.gov.au/FRCGW.

05.01.2022 ----------------------An agents guide to feng shui-------------------------- With Chinese investors snapping up Australian property left, right and centre, its important to be aware of a few simple feng shui strategies that can mean the difference between a client signing on the dotted line or walking away from the deal. Feng shui is an ancient Chinese practice used to create a harmonious environment. Put simply, the aim of feng shui is to assure prosperity, good health and...Continue reading