What… a… year…
We’re sure you’re feeling the same, and now that we’re onto the final month, how are you feeling? Are you excited to see the year end or are you thankful for the lessons you’ve learned?
If you ask us, we don’t know exactly what to feel after this rollercoaster ride of a year which they call 2020!
To help finish this year off on a good note, our team at Worth Property Investing have put together all the property news that has happened over the last 12 months so we can recap, reflect and learn going into 2021.
We’ve got so much under the roof that you need to read. So, sit back – or should we say, buckle up – because this year was quite a journey for Australian real estate!
COVID-19 hits Australia and the property market
We don’t have to remind you of all those pandemic periods, where health and safety restrictions, lockdowns and protocols were all put into place – some of which are still with us today.
Businesses of all kinds were greatly affected by this as they needed to adapt to a new working environment and find new ways of reaching their customers.
As part of this, Open Homes and property inspections went online but slowly reopened, changing the way people bought and sold property forever. This showed people the importance of having a quality Buyers Advocate by your side to help navigate all of the changes. At Worth Property Investing, Simon and our team assisted many clients to find properties, despite everything going on in 2020.
Economist’s property forecasts go from doom to boom
Seeing the impact of the restrictions, it was natural for most market experts to foresee a negative outcome, even in Australian property.
However, to the surprise of many, these real estate market forecasts didn’t stay down for long. With the power of digital technology and the innovative adaption of property professionals, the market is said to have started a new phase being a property boom and we’ve already begun seeing it ourselves, right across Australia.
With all of the buyers re-entering the market and a lower supply of homes to buy than usual, the competition is going to be high. A good Buyer’s Agent can help you through this to come out on top.
The lowest Australian interest rates on record
The Reserve Bank of Australia (RBA) has cut the cash rate three times already this year – twice in March and most recently in November.
The COVID-19 pandemic has greatly affected the global and Australian economy, resulting in the decision to set a historically low cash rate of just 0.1%. Experts have also predicted that it won’t increase any time soon, for at least three years.
This has been an exciting time for both mortgage owners and real estate buyers who are able to take advantage of such low rates to enter the property market.
The NSW State Government proposes radical changes to Stamp Duty
We all know how big of a deal stamp duty is to homeowners and home buyers. Some first home buyers even delay their plans of buying as it’s such a big hurdle that costs a lot.
With this and the deteriorating economy in mind, the NSW State Government is proposing for an option to choose between a one-off stamp duty bill or an annual property tax for New South Wales residents.
This will radically change the game for buyers by making the initial cost of buying a home much more affordable.
The VIC State Government is reducing their Stamp Duty by up to 50%
As NSW makes moves to address the negative impacts of stamp duty, the state of Victoria is also starting to make changes too.
The cost of stamp duty in Victoria will be slashed by up to 50%. However, this full discount is only applicable to newly built homes valued up to $1 million and will be in place until the end of June 2021. As for those buying existing homes, they will receive a 25% discount up to the same value.
The Federal Government proposes significant changes to the ‘Responsible Lending’ legislation
To stimulate economic activity and encourage more spending, the proposed reforms would make it easier for Australians to access credit including home loan mortgages, business loans and credit cards.
While this may be of great help to people, experts worry that leniency with the credit rules will lead to unmanageable amounts of debt over time, as people potentially scramble to borrow extra funds.
Let’s wrap it up!
Phew! What a year it has been.
While everyone has felt the effects of 2020, the property market has seen its fair share of good and bad news, with things constantly shifting and evolving.
With all that said, we hope you find yourself somewhere sunny and nice before this year comes to an end – because we, ourselves have! We have personally relocated to the Sunshine Coast, where every day feels like a holiday.
We don’t mean to make you jealous!
Because we can do the same for you! We are your partners in finding your dream home that lets you enjoy your life to the fullest. The state borders are now open, so if you’re on the move and looking for a sea change, contact us now on 1300 897 874.
From Simon Read and our team at Worth Property Investing, we wish you a very Merry Christmas and a safe New Year!
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