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Hot Property: Biggest headlines from the week that was
JobKeeper and JobSeeker may look different, but they will stick around past September, allowing the property market to breathe a sigh of relief: Here are the biggest property stories from this week.
Hot Property: Biggest headlines from the week that was
JobKeeper and JobSeeker may look different, but they will stick around past September, allowing the property market to breathe a sigh of relief: Here are the biggest property stories from this week.
Welcome to nestegg’s weekly round-up of the bricks-and-mortar stories that we think will be most relevant to you, whether as a first home buyer, a seasoned investor or anyone in between!
To compile this list, not only are we taking a look at the week’s most-read stories and the news that matters, but we are also curating it to include stories from our sister platforms that could have an impact on your buying, selling or investment journey, no matter where you find yourself on the property ladder.
Unemployment is expected to reach 9 per cent by Christmas while the budget deficit returns to World War II-era levels, the Treasurer has forecast in an economic update.
Steve Dick, director of Raine & Horne Commercial Newcastle, said the knock-on effects of COVID-19 will change the commercial property landscape moving forward.
Continued impact on corporate travel, WFH options gaining popularity, and the continued pick-up of online shopping are three trends to look out for.
3. Property peril: Why Sydney housing market has fallen more than official figures
According to Macquarie University’s professor of business analytics, Stefan Trueck, property prices in May 2020 sold on average 8 per cent below their valuation. This means that in May, houses were being offered at a significant discount to those before the COVID-19 crisis.
4. Central West hotspot revealed
Orange, NSW, is the property market-keen investors should be keeping a close eye on, according to Propertyology head of research Simon Pressley.
“For (both) capital growth and rental income growth, the property market in Orange, NSW, has already been one of the best in the country over the last five years,” Mr Pressley said.
5. $250k in taxes on a $500k property: The real cost of investing
The $13.1 billion in negative gearing benefits dished out to investors in 2017-18 was nothing compared with the staggering surge in taxes being paid by those same property holders.
The president of Property Club, Kevin Young, said that “during the five years from 2013-2014 to 2018-2019, overall government taxes on property in Australia surged by 38.5 per cent to $32.6 billion during 2018-2019.”
6. How this investor got on the property ladder making $5.10 an hour
Australians looking to get onto the property ladder but lack the financial resources to do so are being encouraged to get creative and use other means at their disposal.
Real estate agent and property investor Alex Lumsden did not enter the market initially by himself: “I bought into our family home, and I bought another property with some family. Why? I guess I always thought that it was the way to make money,” he said.
7. Lender ramps up home lending scrutiny
COVID-induced crackdowns on home loan serviceability have continued with yet another lender reducing its risk appetite.
BOQ Group (includes Virgin Money) has revised its credit policy for home loan applications as part of its “ongoing commitment to responsible lending”.
The COVID-19 pandemic has seen a reduction in the demand for property, while an oversupply of properties in Melbourne and Sydney could see cheaper rent, new research has revealed.
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