This Month in Review
The Federal Budget has been a game changer for real estate this month. As of July 1st, first home buyers are soon to be able to use up to $30,000 of voluntary contributions into their superannuation to boost their home deposit.
Retirees have also been given a leg up – they’ll be able to make a non-concessional contribution of up to $300,000 into their superannuation from the proceeds of selling a long-term family home. It’s expected this will encourage downsizing.
Foreign buyers will also face changes, with additional land taxes and an increased rate of capital gains tax when they sell.
Statewide, NSW also followed in Victoria’s footsteps, with Stamp Duty exemptions being made for first home buyers in new or established properties under $650,000.
Australia’s household debt to income ratio is now at an all-time record high of 189% on Reserve Bank of Australia data. Citigroup chief economist Willem Buiter has described Australian real estate as a “spectacular housing bubble” ripe for a cyclical downturn.
The affordability issue has many developers and financiers looking at build-to-rent solutions. Grocon’s David Waldren said this could be the solution to getting people into the housing market.
Download and read the full Market Essentials – June 2017 Report