*** Any quoting purposes, please indicate the source: www.songouc.com.au
The latest CoreLogic data for September is out, and has seen six of the countries eight major capital cities increase in value.
In September, dwelling values increased in Perth (0.2%), Canberra (0.4%), Hobart (0.4%), Brisbane (0.5%), Adelaide (0.8%), and Darwin (1.6%).
Values in Sydney fell by just 0.3%, while importantly auction clearance rates continue to remain strong. This proved that the demand for real estate has never been cooled down in the past few months.
The biggest reduction is Melbourne with 0.9%. It is quite understandable because the city is still under lockdown due to the COVID-19 epidemic, however, 0.9% is still a very modest figure compared to the expected decrease of 20% from industry experts. In fact, the decrease of real estate prices in Melbourne from the beginning of COVID-19 until now is only about 2.8% (CoreLogic), with the prices in many areas actually went up since COVID. Overall, there’s a great chance that real estate prices in Melbourne will eventually bounce back and increase in the near future after COVID.
Besides, according to Budget 2020 announced on October 6, 2020, the Australian economic market will not be too bleak as previously predicted by experts. It’s clear that the Morrison Government is striving to kickstart the economy, with the real estate market being one of the key factors through many support programs:
- Extend First Home Loan Deposit Scheme (FHLDS) with extra 10,000 applications granted: Normally, first home buyers with a 5 per cent deposit will need to pay lenders mortgage insurance (LMI). Under the FHLDS, they won’t have to worry about that. The quota for this program was initially set at 10,000 applications, and soon after the new fiscal year began (July 1, 2020), most banks have announced that they the quota was met within only 3 months. With the Budget 2020, this scheme will be extended to help an extra 10,000 people and the value of the properties eligible will also be increased. If you are eligible to receive this support, contact Trusted Finance ASAP to become one of the next 10,000 lucky people to own your dream home soon! (Source: https://budget.gov.au/2020-21/content/overview.htm)
- Reducing Capital Gain Tax (CGT) for granny flat’s construction: Building a granny flat for an elderly relative will be cheaper from July 1, 2021 as capital gains tax will no longer have to be paid once the legislation is passed. (Granny flat for commercial or rental purposes will not be counted).
In conclusion, it’s clear that the Scomo Government is still very confident in their economy recovery once the COVID pandemic passes. Trusted Finance strongly believe that the real estate market in Australia is still very active and potential, especially the price of low-mid-range houses might increase in the near future.
Disclaimer: The content of the article is for reference only. Trusted Finance is not responsible for the consequences that may occur when applying the above information and knowledge without consulting with industry experts.
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