Hello Everyone,
What is the general consensus: are NSW house prices going to tumble? If so, what is predicated in terms of percentage falls and when could this happen (if at all)?I rekon….
If you are refering to the new stamp duty.
It only hurts if you sell.
People wont sell.
The reduction in supply will offset any minor negative effect of the market as the reduction is stamp duty for FHB will bring along a lot of potential buyers who can now afford a property.
This increase in demand after a while will cause another increase in the lower end priced properties.
just my opinion.
aluminatiu2jam,
Do you believe a consensus on an internet forum will move the market?
From my experience forum consensuses are correct approximately 50% of the time….they’re not even wrong often enough to make going the opposite way worthwhile!
Better to look at the evidence & make your own mind up!
And different markets across NSW will behave differently.
Cheers,
Aceyducey
Different markets across NSW will behave differently.
Too true!
My opinon (which of course is not fact) is that people will be reluctant to sell, and with rental stock of 3Br houses, rents could actually go up (as less investors are buying).
On the other hand their is the huge oversupply of inner city appartments. So that could hold some areas rents down (city locations).
I found this interesting prediction (on http://www.StrategicWealth.com.au)
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It also appears that there is no allowance for indexation in the proposed legislation, thus land values will increase and ultimately the $300K land will become $450K in a few years and into the next bracket. Rents will have to increase to cover the impost on the investor.The worst affected will be the battler (who rents) and the self funded retiree with 1 or 2 investment properties that cannot carry the land tax burden in the short term. The main advantage is for those that have investment properties in Discretionary or Hybrid Discretionary Trust as overall they will pay less land tax.
The initiatives for the first home buyer are great, however the cost of the stamp duty on sale will be ultimately borne by the purchaser which may well include these people anyway.
Most sellers not forced to sell, know how much they want in their hand after agent fees etc. This stamp duty will become a function of the sale price and may well force prices up!
—As for the future – who knows! But thats the fun of it!
Rgds.
Lucifer_au
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