The biggest news over the past month for property has been the measures in the 2021-22 Victorian State Budget, which was delivered on May 20.
Designed to reduce the state’s deficit, the measures include $2.7 billion in new property taxes, with stamp duty and land tax increases, as well as a new tax on investment and development. The major changes include:
• From 1 January 2022, land tax will increase by 0.25% for taxable landholdings greater than $1.8 million, and 0.3% for taxable landholdings over $3 million. However, the tax-free threshold for land tax will increase from $250,000 to $300,000.
• For contracts entered into from 1 July 2021, a premium stamp duty rate will be introduced. For property transactions above $2 million, the stamp duty payable will increase to $110,000 plus 6.5 percent of the dutiable value in excess of $2 million. However, a stamp duty concession of up to 100% for off-the-plan purchases of up to $1 million will apply.
• From 1 July 2022, a tax will apply to large windfall gains that come from planning decisions to rezone land, with the total value uplift to be taxed at 50% for windfalls above $500,000.
For the most part, the major measures have been met with criticism from industry professionals, who believe the tax hikes will make Victoria a less attractive place to invest, impact housing affordability, create barriers to downsizing, hurt self-funded retirees who derive an income from property and act as a disincentive for developers to provide more housing. It also comes at a time when the COVID recovery is still taking place, and could do more damage.
We expect there will be lobbying to come to change some of these measures; we will keep you updated on whether that comes to fruition.
One clear positive from the Budget is that more than $107 million will be spent to revitalize Melbourne, with $7.4 million going to a dining voucher scheme to attract people to the CBD.
If you need expert advice or help – whether you’re buying or selling - Property Mavens is here to guide you through the property market. To talk to a qualified and highly regarded buyers’ agent or seller’s advocate, contact us today.
Is now the time to buy?
Would-be property buyers often ask if now is a good time to buy. Timing is on buyers’ radars now even more due to the rising market, with people asking whether they should buy now before the market experiences even more growth, or whether they should wait for prices to cool.
Price growth has slowed, but there is still lots of competition and a lack of stock, which means prices are still rising, albeit at a slower pace. According to CoreLogic’s latest figures housing values rose by 1.8% in April, a rate lower than the 32-year high of 2.8% in March, despite rising by 6.8% over the previous three months to be 10.2% higher than the COVID low in September last year. Prices are expected to keep rising for the foreseeable future, with some forecasts even predicting growth will not subside until interest rates rise, likely in several years’ time.
A recent survey by Canstar found despite strong growth in the market, nearly 40% of Australians were in agreeance that now was a good time to buy because they believed prices would continue to rise. Low-interest rates were also a motivation.
The best advice I can give in relation to whether you should buy now or not is that there is no one answer. No one has a crystal ball, so regardless of peak and troughs in the market, I always suggest clients buy when they can. That is when the bank will lend them the money and they can comfortably afford to make repayments. Then you need to buy well and take a medium to long-term view to allow time to do its thing – that is, for you to make significant equity in your property.
An experienced and expert buyers’ agent such as Property Mavens can provide advice and help buyers and sellers to navigate any market and choose the right properties. If you are a buyer or seller that needs assistance, contact us today for an obligation-free discussion.
Award Finalist Nomination
I was excited to learn that as CEO of Property Mavens, I have been named as a finalist in the REB Women In Real Estate Awards, 2021 for ‘Thought Leader of the Year’.
The Women in Real Estate Awards is the benchmark for excellence, recognising the outstanding women influencing the Australian real estate profession.
Feeling frustrated, particularly in the post-COVID fast-rising market, she engaged Property Mavens services as a metro buyers’ agent to assess and negotiate to buy her a new home.
Gwenda wanted to purchase a low-maintenance downsizer home. We were able to successfully purchase this fantastic property – a 3-bedroom, 2-bathroom house in Ringwood East - for her under tough competition at auction despite interest from five other buyers.
In Gwenda’s words, having our expertise on her side made her ‘next chapter’ home ownership dreams come true!
If you want help to identify an investment-grade property like this one, whether it’s a family home or an investment property, click here to book a time with us to discuss your requirements. It’s 100% obligation-free.
Why do you need a vendor's advocate?
Wutti wanted to sell his family home, a three-bedroom, two-bathroom townhouse in Maribyrnong after owning it for several years.
He engaged Property Mavens’ vendors’ advocacy service to guide him throughout the agent selection and sales journey because he wanted a trusted partner who could help him sort the best agents from the worst to make a smart sales decision
If you would like help to secure a fantastic outcome, whether it’s selling a family home or an investment property, and you’re ready to get started, click here to book a time to discuss your requirements. It’s 100% obligation free.
Geoff and Michelle were referred to us by their financial planner (who is also our client). They engaged our metro buyers’ agent services to help purchase a low-maintenance property with strong capital growth potential, while delivering a good yield in the interim.
We successfully bought this fantastic property, a 3-bedroom, 1-bathroom house in Sunshine West via a private sale for $30,000 under our appraised market price despite buyer competition.
12 months later the property has grown in value by a whopping 16%! Geoff and Michelle purchased it for $863,000 in March 2020 and it’s now valued at $1 million!
As professional property buyers we know the difference between a bad property and a good one, where to buy to generate the strongest returns, how to buy to secure the best result, and what properties are really worth, to ensure our clients don’t pay too much. If you want similar results, click here to book a time with us to discuss your requirements. It’s 100% obligation free.
Go Forth and Prosper !
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