May Property Market Update

Sydney property approaching boom mentality

The much dreaded Federal Budget has been presented and from a housing market perspective it is of little consequence. There was nothing that directly, or for that matter indirectly, impacted on property prices. However, the reduction in the corporate tax rate to 28.5 per cent from July 2015 adds a pressure to consider investing under a corporate structure where an investment property is not negatively geared. This is particularly so where the investment is going to be held for a considerable period. The difference between the discounted (50 per cent) capital gains tax (CGT) personal marginal rate and the corporate tax rate is now minimal and over time the benefit of the lower corporate tax rate on income could relatively quickly absorb the positive CGT discount benefit.

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October Property Market Update

Positive news for Australian property

Tis the season to be jolly’ with this year’s Christmas bringing good news to our property market!

Rents are down and there is capital growth in most capital cities. All players in the market will be, or should be happier and feeling more comfortable about their financial positions. This situation bodes well for a happier Christmas with things looking as though they will be better than they have been for a number of years.

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September Property Market Update

No Housing Bubble on the Horizon

All is going well for Australia relative to most developed countries of the world. The Reserve Bank and the government should be comfortable with the transition process taking place as the country moves away from the mining boom to a more normal economy.

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August Property Market Update

Further rate reductions on the horizon

It was only about 18 months ago that the housing market was full of gloomy news. Many of the worst performing areas in Australia were on the Gold Coast where there was a significant oversupply of stock and values had fallen by amounts not seen since the Great Depression.

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July Property Market Update

Markets rebound on the back of rate cuts

Markets are rebounding on the back of lower interest rates and a lack of available stock for those competing to purchase. In the last quarter, house and land values have increased by 0.59% on an Australian wide basis while units have presented an increase of 1.89%. Graph 1 displays the trend in the data, which is clearly presenting growth.

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May Property Market Update

Median house price in Sydney exceeds $700,000

The latest statistics reveal that there are a number of significant news stories to be told and depending on which way you look at things, the news could be good or bad.

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April Property Market Update

Rate reduction to help home owners and increase affordability

It has been a very busy month with several events and important announcements made.

For me, the budget is what I expected with the important issues and commitments being delayed until the future. In the near term, it could be argued that the budget is negative towards growth. In the medium term it moves to repair some of the structural problems caused by the so-called spreading of the mining boom benefits among the population. It does so through the removal of the baby bonus and the increase in the Medicare levy to help fund the national disability reform. Perhaps this correction will impact on housing markets but I doubt it as no change is significant enough at an individual level to negatively impact on the capacity of a family to buy a home.

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March 2013 Property Market Update

Housing markets strengthen but further action needed

As housing markets grow in strength I am again drawn to the issues and problems associated with the Reserve Bank’s single tool of economic management – the setting of the cash rate.

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