Home ownership was once again the most discussed matter in real estate last week. Almost two-thirds of Australians don’t think home ownership will be a likely option for young people as prices continue to rise. The use of a guarantor seems to be a more viable option, as discussed in this week’s episode of the Property Buyble featuring Joseph Daoud.
Also in the news the NSW government is considering a few property tax reforms in response to the crazy boom Sydney is experiencing. This looks necessary as the boom won’t slow down anytime soon considering the RBA has no interest in raising the cash rate for a few years.
Buying Property Without a Deposit – The Property Bubble
Saving a deposit is usually the hardest and longest part of the property purchase process. It’s Simple Finance founder and lending specialist, Joseph Daoud, explains how to use a guarantor as a way of purchasing property without a deposit.
A new tool provided by realestate.com.au allows consumers to calculate a suburb’s median estimated price per square metre which can help discover suburbs that give you the best value for money.
The National Housing Finance and Investment Corporation found affordability was worst for potential first home buyers in Sydney and Hobart, with only 10 to 20 percent of properties in those markets affordable for the bottom 60% of income earners. The Australia Talks survey also found that 65% of Australians in general think owning a home isn’t really an option for most young Australians anymore.
Grants of up to $25,000 to help first home buyers crack into Sydney’s property market could be introduced after plans to overhaul the NSW property tax system received ‘widespread support’. The plans would give homebuyers in NSW the choice to pay stamp duty or to pay an annual property tax based on their land value and property use. Once a property is subject to the new land tax, subsequent owners must also pay the tax, phasing out stamp duty over time. Existing stamp duty concessions for first homebuyers would be replaced with a grant of up to $25,000.
The Reserve Bank has reaffirmed its commitment to keeping the official cash rate close to zero for years, despite signs of rising inflation around the world, especially the United States. The RBA sees inflation temporarily rising above 3% this year, as price reductions introduced during the pandemic are reversed, but expects that spike to quickly fall back below its target.
Rents set to rise as properties available for rent tighten – realestate.com.au
Figures released by SQM Research revealed that Brisbane’s vacancy rate hit 1.3% in May (down from 1.4% in April), a result which was tighter than the national residential rental vacancy rate – which shrank to 1.8% (from 1.9%). This is likely to mean that landlords could raise rental prices.