Greetings from Scoutable and welcome to our July Wrap Up.
I hope you and your loved ones are well.
Changes to stamp duty: A media release by the NSW Government on the 27th July, stated changes to stamp duty thresholds for first home buyers. "The change to the thresholds will only apply to newly-built homes and vacant land, not to existing homes, and will last for a 12-month period, commencing on 1 August 2020. Other purchases will continue to benefit from existing schemes. Under the changes, the threshold above which stamp duty will be charged on new homes for first home buyers will increase from the current $650,000 to $800,000, with the concession reducing on higher values before phasing out at $1 million. Under the changes the stamp duty threshold on vacant land will rise from $350,000 to $400,000 and will phase out at $500,000."
To date, COVID-19's impact on housing markets has been milder than initially anticipated. The government stimulus, low interest rates, lack of supply and buyer confidence are all factors assisting the market. CoreLogic head of research, Tim Lawless, provided the following comment on the property market on the 1st July:
“Although the decline in home values has been fairly mild since April, the longer-term outlook remains highly uncertain. While it is encouraging to see lenders have recently hinted at an extension in their repayment leniency policies, the government stimulus will eventually taper, and banks will require borrowers to repay their loans. The longer-term outlook for the housing market is largely dependent on how well the economy is tracking when these support measures are removed.”
CoreLogic further commented "According to the RBA governor, the trajectory of the Australian economy is somewhere between the best case scenario and the central case scenario. A shallower recession and early return to growth should see consumer confidence record a further improvement."
We are finding many buyers, both owner-occupiers and investors out in force in the marketplace. Interestingly, we still see many buyers make common mistakes when buying a property. Let’s take a look at a few:
Not doing the due diligence
Research is key! Contract reviews, strata reports, pest inspections, building reports, town planning / zoning regulations and recent development applications are important research tools to know exactly what you are buying, warts and all. It could save you a lot of stress and money.
Not considering all the costs
Most buyers are aware of the acquisition costs, such as stamp duty, valuation costs, loan application fees and mortgage insurance. Many people fail to consider the ongoing costs, for example, insurance, water and council rates, strata fees, property management fees, repair and maintenance, and potentially land tax in the case of an investment property.
Not acknowledging the flaws
Falling madly in love with a home isn’t always a good thing. Buyers can get too emotional. Make a checklist for your property search and make sure the property ticks as many points as possible before you buy.
Going beyond your budget
Every homebuyer knows the feeling – you’re looking for a home that fits your budget, but that slightly more expensive property just looks that much more appealing. However, buying a home that’s way out of your price range could well derail your finances in the future. The bank has given you a borrowing limit for a reason - it is based on your ability to repay the loan. You should also consider allowing a buffer for changes in your future circumstances.
Buying in desperation
The ‘it will do’ purchase. You buy because you are sick of inspecting / researching / missing out. It is ok to take your time. It is a big investment. You do not want to regret your decision. Refer back to your check list before buying.
If you are thinking of buying or investing in Australian property, get in touch to learn about Scoutable's services and how we can assist with your property search.
Until next month,
Kellie Landrey | Principal Buyers Agent
IN THE NEWS
RENTAL VACANCIES RISE IN SYDNEY'S CBD
NSW FIRST HOME BUYERS HAVE STAMP DUTY FEES AXED TEMPORARILY
PUBLIC HOUSING NEGLECT MADE MELBOURNE CORONAVIRUS OUTBREAK WORSE, HEALTH PROFESSIONAL AND RESIDENT SAYS
PROPERTY OF THE MONTH
322 ANNANDALE STREET, ANNANDALE
The property of the month is a terrace dwelling situated in Annandale, five kilometres west of the Sydney central business district.
The width of the land with terrace dwellings often sets the value range. The wider the terrace, the more premium the price. A standard width is around three to four metres. A width of five metres allows for a hallway to separate the front living spaces. We have inspected terraces with widths of two metres! The property of the month provides an outstanding width of over six metres. This allows the property to feel very spacious and is further enhanced by three metre ceilings.
The property was built in the early 1900s, over two levels with an attic conversion, on 226sqm of land. The entry level provides formal living /dining, open plan kitchen / family / casual dining and WC. The upper levels accommodate five bedrooms and three bathrooms. Externally, there is a small courtyard, swimming pool and garage with parking for one / two cars (small cars).
The price guide is $2,800,000.
If you'd like to know more about this property or any others, please get in touch.
