2017 has seen another year of strong growth in residential property prices for Sydney’s South Eastern suburbs. However, as we enter the winter months, the normal auction clearance rate dip strikes, with clearance rates currently down to 69 per cent. Fear not, a dip in clearance rates at this time in the residential property cycle is not unexpected.
The residential property market works in yearly cycles and, despite a slight dip, prices remain strong and competitive.
As demand drops from buyers, that doesn’t mean stock is down. Vendors are still wanting to shift their assets and this period of quieter competition could actually be the best time for a buyer looking for a less competitive market place.
First home buyers: Stamp duty concessions from 1 July 2017
In recent weeks the NSW government has announced that stamp duty exemptions will be introduced for first home buyers on properties up to $650,000, and stamp duty will be reduced on properties up to $800,000. This announcement has seen first time buyers holding off on purchasing to save thousands of dollars. For those buying in the $650,000 to $800,000 price range, a saving of thousands of dollars can make a huge difference.
We expect to see a slight rush on properties in the lower price range come 1 July, potentially continuing through to August and September.
First home buyers: It can be done
It seems that it is becoming increasingly difficult to become a first time buyer in the state of New South Wales and in particular, the highly sought after Sydney Metropolitan area.
Since 2012, we have been experiencing a high-rate property boom that has seen prices more than double, leaving first home buyers out in the cold (or stuck at home with mum and dad). Despite stamp duty exemptions and government grants for the first home buyer, recent statistics from the Office of State Revenue show that there are more foreign investors purchasing Real Estate than those trying to access the property ladder.
First home buyers: Is buying an ‘off-the-plan’ property worth the risk?
With property prices soaring at an unprecedented rate in all major cities across Australia, there has been much speculation regarding the benefits of purchasing an ‘off-the-plan’ property; especially for buyers entering the property ladder.
There is no doubt that buying an ‘off-the-plan’ property has positives but they come at a risk as essentially you are buying a promise of a home that has not yet been completed. As a buyer, if you don’t do your due diligence to yourself, you could fundamentally lose hundreds of thousands of dollars in your purchase - which is a hard blow to suffer in our advancing property market.