Sydney Property Market Update

By: Whitehouse Capital Partners

Constant delays for new developments are the result of inefficient government procedures and the tightening of financial requirements by lenders. Both have created a situation where housing demand is outstripping supply, as can be seen by the low 1.3% vacancy rate. Rental yields are healthy and improving. The past year’s growth is on the back of a general stagnation in prices over the last 5 years.  

 Sydney Property Market Update

Are increasing interest rates bad for property?

This is not a straightforward question.  Many people only think about the bad aspect of interest rates; the increase in monthly payments.  Capital growth can actually be strong in a period of rising interest rates due to improved economic conditions.  Of course, there will be a crossover point whereby the level of interest rates will impact negatively on capital growth.

Are increasing interest rates bad for property?

NSW Home Builders Bonus

By: Whitehouse Capital Partners

 

 

 NSW Home Builders Bonus

The new Home Builders Bonus is a relief from stamp duty introduced by the NSW government. By doing this the government is aiming to increase the viability of developments, making it easier for developers to obtain finance through pre-sales. It applies from 1 July 2010 until 1 July 2012.

Complete exemption from stamp duty will be given to people buying a property off the plan, prior to commencement of building. It also applies to purchases of land under $400,000 and new homes under $600,000.

By purchasing an off the plan unit prior to commencement of construction, an investor can save up to $22,490. The government is also offering a full exemption for seniors purchasing new homes to be used as their principal place of residence.

If construction has commenced, the Bonus will be reduced to 25% of the payable duty. This rate will also apply to new homes where building has been completed.

Melbourne Property Market Update

By: Whitehouse Capital Partners

Despite modest growth in the past year, Brisbane remains a solid market. With low vacancy rates, healthy rental yields and being backed by a buoyant economy and government investment in infrastructure, Brisbane is expected to experience further price increases in the second half of 2010. The March quarter showed improving property price growth.

 Melbourne Property Market Update

Brisbane Property Market Update

By: Whitehouse Capital Partners

Despite modest growth in the past year, Brisbane remains a solid market. With low vacancy rates, healthy rental yields and being backed by a buoyant economy and government investment in infrastructure, Brisbane is expected to experience further price increases in the second half of 2010. The March quarter showed improving property price growth.

 

 

 Brisbane Property Market Update