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What happened to the markets in June 2017?

By Jessica Ridder

Welcome to our June newsletter.

With the End of Financial Year fast approaching there are many changes in store for those of you buying and selling property. Whether you are a first home buyer or a seasoned investor the federal budget had something for everyone.

2017 Federal Budget: Highlights for our industry

Federal Treasurer Scott Morrison’s second budget was delivered to Australia, with a range of changes for first home buyers, property investors and older Australians looking to downsize. Overall, the measures are designed to free up more development land and get first home buyers into the market sooner.

A lending hand for first home buyers
From 1 July 2017 first home buyers are able to salary sacrifice extra contributions into their superannuation account up to a maximum of $30,000 in total and $15,000 in a single year. First home buyers will also be exempt from stamp duty from the 1st July (conditions apply).
From 1 July 2018 onwards, the ‘First Home Super Savers Scheme’ will allow first home buyers to withdraw that cash, along with any associated earnings. Under this plan, it’s proposed first home savers fast-track their savings by at least 30 per cent.

Tighter rules for foreign property investors
Overall, foreign investors are negatively impacted in the Budget package through a number of tighter restrictions, which came into effect last night. These include:

  • Tightening capital gains tax, no longer being able to access main residence exemption
  • Increasing the capital gains tax withholding rate from 10 per cent to 12.5 per cent
  • Reduce the capital gains tax withholding threshold for foreign tax residents from $2 million to $750,000
  • Tax of $5000 per annum to be imposed on foreign investors with vacant properties

Downsizing incentives
Freeing up more properties through encouraging empty nesters to downsize is at the heart of the Federal Government’s plan.
From July 1, 2018, people aged 65 and over will be able to make a non-concessional contribution of up to $300,000 from the sale of their principal residence into their superannuation, provided they have lived there for at least 10 years.

June 2017 – Property Market
Any talk of the property market easing appears to be premature as the Ray White Group just posted their second strongest month ever for May. The local property market is still very strong with low stock levels and high levels of buyer enquiry. If you are thinking of selling in Spring it may be worth considering the strong selling conditions that we are currently experiencing and giving the sales staff at Ray White a call. If you have not had your property appraised in the last 12-18 months then an updated appraisal is certainly worthwhile as the local property market has jumped up to 18% in some suburbs.

For a more detailed report of the local property market email jessica.ridder@raywhite.com and request a Market Report.

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