Market Review –
There is no crystal ball when it comes to the property market, so how do you prepare for the future? We look to “QBE BIS Shrapnel” property outlook report for a more long range forecast. QBE is one of the two big mortgage insurers in Australia, its role is to protect the banks from losing money in the event that they are forced to sell a customer’s house, and the sale does not clear the debt. Therefore QBE put a lot of energy into predicting the future value of Australian property, as they have a lot to lose if the market contracts. To this end, QBE works with BIS Schrapnel to thoroughly research the factors that impact on future values.
The good news is that BIS Shrapnel are forecasting a 16.7% increase in the median Sydney dwelling price between now and 2015.
In local news we are seeing positive inspection numbers through open homes & buyer activity. This could be the result of Spring and successive rate cuts. The latest rate cut was 0.25 per cent on October 2nd, with the official interest rate now sitting at 3.25 per cent. Government stimulation initiatives also effect the real estate market – read below for the latest changes;
First Home Owner Grant changes
From 1 October 2012, the $7 000 First Home Owner Grant will be replaced by the $15 000 First Home Owner Grant (New Homes) Scheme. First home owners who purchase or build a new home where the contract date is on or after 1 October 2012 will be eligible for the $15 000 grant. The grant will reduce to $10,000 on 1 January 2014 for eligible transactions which have a commencement date (contract date) on or after 1 January 2014.
The $7 000 first home owner grant for established properties ended on the 30th of September 2012 and will not be available where the eligible transaction commencement date (contract date) is on or after 1 October 2012. For more information go to; www.osr.nsw.gov.au/benefits/first_home/
If you would like a more detailed report on the local property market call the office on 02 4787 8797 and request a free Suburb Snapshot.