Has the Sydney market gotten a second wind or was it always going strong, popular perception notwithstanding? Every day, pundits come up with huge numbers proclaiming that the Sydney property market has become grossly overpriced and that affordability will be really tested. They are sure that the prices cannot be sustained for long and will come down. Yet an article on The Adviser says that the market is growing relentlessly and may achieve unprecedented growth in a short time from now.
Tracey's Property News
Federal Budget Cheered by Small Business Owners
An article for the website Your Investment Property says that the second budget presented by the Abbott Government will help property investors. Tax breaks will let business owners take their businesses to a different level. At the same time, it will also create a large number of jobs. Initiatives like “Jobs for families” will mean that families will not reel under the pressure of low household budgets and will be able to manage mortgage repayments a lot better. As an aside, the taxation allowance for negative gearing stays and this is another piece of welcome news.
Application fee introduced for foreign investors
Foreign investors and expats looking to invest in the Aussie property market will be charged an application fee based on a sliding scale (a variable scale determined by demand) beginning at $5,000. Mortgage brokers are a little panicky with the development but experts are convinced that tougher entry protocols won’t be dampening the enthusiasm of the foreign investors.
Small Business package
The “Jobs and small business package” talked about by Treasurer Joe Hockey is to the tune of $5.5 billion. This is unprecedented in Australian history. Come July 2015, small companies with profits of less than $2 million annually will have their tax bracket lowered from 30% to 28.5%. Furthermore, small businesses will be able to avail of an immediate deduction of new assets up to $20,000.
The budget clearly shows its intent towards small businesses and is likely to herald higher growth rate for them.
You can read the original article here.
Joe Hockey criticised
Lately, Joe Hockey was in the news for all the wrong reasons when he was severely criticized for commenting without having made adequate research on negative gearing and how abolishing it had affected rental rates in 1987. His view on using SMSF money for first home purchases was also not taken too well. This said, the treasurer definitely needs a pat on the back for his growth-friendly move dedicated to small business houses.
“Small business, too big to ignore” campaign
Perhaps, the noise made by the campaign “Small Business. Too big to ignore” has been heard and the government has woken up to the fact that businesses, and not governments, generate capital and wealth for nations.
A round of welcome moves
I also quite like the move aimed at minimizing red tape hurdles, expediting registration processes and facilitating crowd-sourced equity funding. Certainly a round of turbocharged small industries are needed!
The Negative Gearing Debate Never Loses Steam
An article on the website news.com.au sheds light on the government’s stance on negative gearing and discusses whether it should be scrapped or kept as it is. While the government could save a ballpark figure of $12 billion by abolishing negative gearing, they are in no mood to take the step, given the kind of repercussions the move might have. For all we know, the collective social and economic stimulus might take a beating.
How to Measure Home Affordability Best?
You are definitely on tricky terrain if you have made up your mind about comparing housing costs and home affordability. Though there are hundreds of figures and stats to guide you, it is like dealing with abstractions and it is not hard to explain why. An article on the website StreetNews has an interesting take on the subject.
Sydney Property Market to Keep Striking it Rich
In an article for the website Your Investment Property, Alastair Lynn shares with us why he believes the Sydney property market will continue on its merry way. The ever-falling interest rates will make entry into the real estate sector a pretty smooth one. After all, there is no dearth of price-sensitive buyers, and for them, lower interest rates would mean a relaxed payment structure.
Sydney House Prices to Drop in 2016
An article on the online edition of The Adviser throws light on the precarious territory which Sydney real estate may move towards in the year 2016. From being a show-stealer in 2013 and 2014, it may turn into an also-ran city next year, when Sydney house prices are expected to register less than 4% growth.
