Blog

Stamp Duty relief for NSW off-plan property

Mon, 14 Jun 2010 01:09:00 -0400

NSW state government Budget announcement: From July, buying a home off the plan for less than $600,000 incurs no stamp duty, a saving of up to $22,500. This doubles the 50 percent stamp duty cut on newly built houses worth up to $600,000 from July 1 2009 . Do you think this will be a vital second step in alleviating the chronic shortage of housing in the state or will it merely result in increased profit for developers?

Reserve Bank's Dilemma

Sun, 25 Apr 2010 01:31:00 -0400

Do you agree that Reserve Bank Governor Glenn Stevens has a dilemma - if he continues raising interest rates in order to quell demand, the effect is to also delay delivery of new product? Developers are cautious about lodging building approvals when buyers are withdrawing from the market (assuming they can even obtain construction finance in the tighter credit environment). The nascent recovery in the Sydney building industry is threatened by a too hasty normalisation of cash rates combined with the withdrawal of government incentives, the net effect of which will be diminished supply and a return to rising prices as well as house price inflation.

Investors to the rescue

Mon, 11 Jan 2010 00:05:00 -0500

With ANZ and Westpac predicting a near doubling of mortgage defaults over 2010, continuing strength in net migration gains and natural population increase the supply /demand disconnect is expected to persist. Many commentators anticipate a mini-sub prime in the sub $500k property space. Do you see opportunistic investors rushing to fill the void with the withdrawal of FHB boost benefits?

Is the current Aus property growth sustainable?

Fri, 02 Oct 2009 23:29:00 -0400

Annualised, we are looking at around 12%pa growth in Australian property values. With the phasing out of the First Home Buyer Boost Australia is seeing an orderly transfer of demand from FHB's to investors. Do you believe that First Home Buyers have created a 'bubble' in the sub $500k pricepoint or do you feel that the current rate of growth is sustainable?

Have Interest Rates bottomed?

Sun, 23 Aug 2009 01:32:00 -0400

Interest rates may not rebound as quickly as many Australian commentators predict, due to slower company earnings coming out of the worst recession since the Great Depression.

Property investment risks

Mon, 29 Jun 2009 01:02:00 -0400

Property investment is not without risk. Typically mistakes are made where investors are not clear on their financial objectives, inadequate research is undertaken or the services of prudent financial contacts and property professionals are not engaged .