Housing Market Update 09/06/2017
It's been a busy week with the big news being the State government's new property law changes.
First things first. Once again the Reserve Bank of Australia left interest rates on hold. This will be a familiar pattern until we see significant improvement in the greater economy. With inflation below trend and wages growth struggling to keep up with CPI it is just not possible at the moment to touch rates.
Ironically the Reserve may have to rely on the banks to independently raise rates to continue to calm the rampant Sydney property market. Time will tell.
The huge news though was the NSW's government's announcement to go back to the future and once again re-introduce major stamp duty concessions to first home buyers.
If you have been living under a rock for the past week, the main change is any property purchase EITHER OLD OR NEW by a first-time buyer (who will live in it) up to $650,000 will be stamped duty-free from 1st July this year.
In addition, there will be lesser concessions from $650,000 up to the $800,000 mark where the rate will return to full. Confused ? Don't be, it is a major win for first-time buyers and if you need more detailed information of the changes simply click on this link.
I will talk more about the potential effect of these new laws in next week's updates, in particular, the other changes that will affect foreign buyers who will now have to pay around double the stamp duty for a property in New South Wales as well as the new release thresholds.
That's it from me. Have a great weekend