JaneandJim

Have remained unchanged again, for those that are interested.

dracupg

There seems to be a growing acceptance that there may not be another rate rise this year.

bondipom

Seems like the Independant central bank is not as independant as it ought to be. I reckon the next rise will be after the election.

Don

Independent but not insensitive. Same is true of USA right now where I reckon the Fed won't do anything much other than a few comments and maybe a quarter point until after November. That affects the rest of the world quite a bit.

MikeStanton

Those thinking of buying homes in Oz, might want to wait a while.

Article in The Economist, page 105 (for week ending March 26th?) - emphasising, yet again, that the Oz property market bubble looks like it might burst ('is wobbly' was the phrase used). And it could end in very serious tears

It seems that in a recent study of the top 19 countires, the investment bank Goldman Sachs rated Oz and Spain as the countries most likely to be subject to interest rate rises or recession.

bundy

When's that, BP??? Lost track...

bondipom

The has not been announced but an election is due this year. IMO the points changes and Bush visa are more for the pandying to the electorate than for devising an effective migration program.

Mike have you seen the proposed changes to stamp duty and land tax in NSW. 2.5% slug for investment property sales. Papers are now saying if you have not sold now you have missed the boat.

MikeStanton

Thanks, I've just seen it. I guess the stamp duty change will help stimulate the 'lower' (for Sydney) end of the market. Does the property tax apply to all properties or just investment props. ?

I've just found the answer to my own question:

"The Government wants to extend land tax to all property other than the principal place of residence from the end of this year. Only properties with less than $25,000 land value will not pay the tax. You are liable to pay when you own land with or without buildings."

ABCDiamond

The NSW tax changes:

a: - Owners of Investment Properties will have to pay 2.25 per cent investment property stamp duty on any Sales after July 1st, (or maybe sooner).

b: - Owners of Investment Properties will have to pay 0.40% land tax on any Investment property held each year, based on a land value of less than $400,000, rising to 1.4% above $500,000.

c: - First Home Buyers will NOT have to pay stamp duty on property bought up to $500,000.


My views on the Landlords answers:
To compensate for b:, landlords will look at increasing rents by a figure to equal the new expense.

a: Most Landlords do not intend to sell, so are not over concerned by it. Those that are will try to sell to first home buyers, (because of (c and increase the selling price to include the extra tax.

c: That one could push prices up in NSW, as the buyers will have more money available to spend.


Any one thinking of buying an investment property in the future may avoid NSW and head for places like QLD, where they don't get slugged as much in tax. Therefore keeping the upward pressure on QLD prices. Demand may then go down in NSW, other than for First home buyers.

I wish I wasn't in the position of thinking whether to sell in NSW or not !! Now I don't know what to do !!

MikeStanton

It will be interesting to see if rental prices will go up in NSW. I'm not convinced prices will move much in the next 1-2 years , because there is already a glut of rental units and even more coming on the market, although this is now slowing.

Some will look to sell before the June/July tax imposition - and a lot more will probably hold on to their properties in the hope of making an eventual net capital gain - but may reconsider when interest rates start to rise.

ABCDiamond

My NSW rents are going up, i've just put one up by $10, and the other will go up by the same figure shortly. So i've covered the land tax charge.
All other businesses are allowed to pass business costs on to their customers, so I see no reason why I shouldn't. And in the west of Sydney there are still plenty of tenants looking for decent property, so rents aren't being held down the same way in that area.

I have also revised the sale price of the one I am thinking of selling. I was planning on $435k, which would have cost a first home buyer $450k including stamp duty.

Now it is $445k, but will only cost the first home buyer $445k.

I get to keep the same net figure as before, and they get it $5k cheaper than before.

bondipom

Another flat in my block is for lease. Any rent increase will mean I am moving. At the moment the SMH is in panick mode on NSW investment properties, especially units but I think actual owners will hold on.

New money is predicted to head up to QLD and the Gold Coast spruikers are in town in force.

http://www.smh.com.au/articles/2004/...?from=storyrhs

Gold Coast property developers will be shining their white shoes in preparation for the expected influx of investors escaping new property taxes in NSW.

With south-east Queensland still in the grip of a property boom, consumer advocates warn that the influx will exacerbate the problem of real estate marketeers charging one price for locals and another inflated price to out-of-towners.

Real estate critic Neil Jenman said he was already receiving calls and emails from consumers indicating that marketeers had stepped up their activity since the new laws were announced.

"They'll be the Pied Pipers leading people to the promised land of Queensland," he said.

"They're all booking seminars in the southern states."

Anthony Field, principal of Elders Real Estate at Nambucca Heads, says investors are already heading north.

"I've had four sales fall over this morning directly attributed to the Carr Government budget," he said on Thursday.

Megalania

Sydney - only the cemeteries and cockroaches left for company.

ABCDiamond

In that case I'm putting up the price of my investment property up here in QLD as well now
I think a 10% rise is justified ??

bondipom

That Gold Coast property will certainly look good (capital wise) over the next 6 months as NSW investment shifts up North.

NSW landlords are in for a hard time as the stamp duty abolition will bring a lot of renters a deposit to buy. It changes my situation.