The current traditional property spring selling season this year has been all about brand new property, with more buyers considering new homes and off-the-plan property in favour of existing property.
As a result, the real estate industry will find that mortgage figures will increase but existing home sales and weekend suburban open homes won’t reflect this. Naturally, this all comes down to the temporary State Government incentive of $10,000 for the purchase of new property.
Literally as soon as the announcement was made, we started to receive enquiries from our clients, keen to discover what incentives they were eligible for and how to claim them. Buyers and investors from interstate as well as those who had been waiting to invest for some time are now actively signing contacts on a number of great new property opportunities in high growth areas.
Basically, investors and buyers of a brand new home (including an apartment bought off-the-plan) are eligible for the temporary State Government incentive of $10,000, available until the end of January next year. For a comprehensive home building project, building work must commence within 26 weeks of the date of the contract and be completed within 18 months of the work starting, whereas for homes and apartments bought off the plan, the building work must be completed by 31 July 2013.
Buying new has other advantages for the investor as well, including greater tax deductions, less maintenance issues further down the track and, all things being equal, a new property typically has a lower vacancy rate than an old one. Buying new is always going to be the preferable option to investors, even after the conclusion of the government incentive to build new.
Other factors contributing to a busy spring and summer selling season are interest rates remaining at an all time low, and the current down cycle in the property market. This of course means property is more affordable than it has been in years; there is a greater choice of property on the market, and sellers/developers are more open to negotiation.
See Intellichoice's website for a home loan or business finance, or call 1300 55 10 45.
Posts
